Many businesses depend on division of labor, and many are run by non-technical people, and rely on specialized employees to manage mission-critical software and

Many businesses depend on division of labor, and many are run by non-technical people, and rely on specialized employees to manage mission-critical software and technology. According to PG's logic, this should be impossible. The real problem is incentives. Developers who are willing to make the necessary commitments and sacrifices, take on the risks and the opportunity costs of building a startup are in a strong enough negotiating position to demand ownership. But this advantage is almost certainly weakening. For example, cloud computing makes it much cheaper to scale, which means performance is less of an issue, so cheaper, less experienced developers with less training become more viable. Even if outsourcing is undesirable for other reasons, it still puts local developers in a weaker position. At some point it will be possible to offshore development of a prototype, get some traction and then rebuild everything once you get funding. I know some startups have been acquired after the acquiring company outsourced a cheap ripoff of almost the same product to see if was a market for it with their customers, and then bought the startup. Why couldn't this also work for coming up with a new idea?