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Then the smaller firms could be acquired. As it is, because of the slowing new-company generation, large firms have been getting fewer and fewer options. Small
by digikata 9y ago
Then the smaller firms could be acquired. As it is, because of the slowing new-company generation, large firms have been getting fewer and fewer options. Small firms can take risks to create new products and processes which can then be acquired and taken up and expanded by large companies. Generally its much more difficult for a large company to do that creation part in-house. So insufficient small firms end up affecting the large-firm capability in the end.
- SimbaOnSteroids 9y agoUnfortunately this type of long term benefit for the large corporation doesn't affect the next quarterly report and is ignored in favor of more short term gains.
- digikata 9y agoProductivity gains seem to be dropping and one theory is that companies are getting larger, but aren't able to pickup efficiency/new value generation boosts from acquisitions like they once were able to (at an economy wide scale, not talking about the acquisitions of any specific company or even sectors here). It is difficult to make any certain conclusions here though. But if true, they will have to care sooner or later.