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It’s literally impossible to exhaust R&D Opportunities. The hard part is going from research to commercialization but the is an almost unlimited amount of innov

It’s literally impossible to exhaust R&D Opportunities. The hard part is going from research to commercialization but the is an almost unlimited amount of innovation still possible.

airstrike 7y ago
> It’s literally impossible to exhaust R&D Opportunities. It is not impossible, however, to exhaust R&D opportunities with an expected NPV greater than zero.
- clairity 7y ago
  that's only limited by how you define the industry you're in. we'd have a lot more to worry about if no NPV positive opportunities existed at all (which would imply an exhaustion of relatively free raw inputs).
  - s1artibartfast 7y ago
    >that's only limited by how you define the industry you're in. I have seen a lot of great companies acquired and destroyed by parent companies in another industry. It certainly can and is often done well, but is not trivial or risk free.
    - clairity 7y ago
      no doubt it's fraught with risk (including risks specific to diversifying or m&a), but all NPV-positive opportunities are at least a little risky by definition (no risk, no return). acquisitions in general are all too often vanity projects, rather than synergistic value creators they're purported to be.
s1artibartfast 7y ago
There may be near infinite opportunities to invest, but that does not mean they can be profitable. Also, if something is a good investment, it doesn't mean it is a good investment for a given company.
- digitaltrees 7y ago
  That’s true and a good general guide but the current incentives for the executive team to under invest in long term health of a business and boost short term profit are overwhelming this rational analysis.
  - s1artibartfast 7y ago
    The incentive for the executive team are set by the board and shareholders, who could easily restructure incentives to favor R&D investment. Whether is this is good for long term profit will be different from case to case. I worked at a company where annual goals routinely included invest X billion on new technology acquisitions. Some of this money sticks and some doesn't.
throw0101a 7y ago
> It’s literally impossible to exhaust R&D Opportunities. Tell that to AAPL: how many projects got cut when Jobs came back to run the company in the 1990s. Just because you can spend time on something does not mean you should. A company has a finite amount of employess, who have a finite amount of hours of daylight, with competitors nipping at their heels.

It’s literally impossible to exhaust R&D Opportunities. The hard part is going from research to commercialization but the is an almost unlimited amount of innovation still possible.

airstrike 7y ago

> It’s literally impossible to exhaust R&D Opportunities. It is not impossible, however, to exhaust R&D opportunities with an expected NPV greater than zero.

clairity 7y ago
that's only limited by how you define the industry you're in. we'd have a lot more to worry about if no NPV positive opportunities existed at all (which would imply an exhaustion of relatively free raw inputs).
- s1artibartfast 7y ago
  >that's only limited by how you define the industry you're in. I have seen a lot of great companies acquired and destroyed by parent companies in another industry. It certainly can and is often done well, but is not trivial or risk free.
  - clairity 7y ago
    no doubt it's fraught with risk (including risks specific to diversifying or m&a), but all NPV-positive opportunities are at least a little risky by definition (no risk, no return). acquisitions in general are all too often vanity projects, rather than synergistic value creators they're purported to be.

s1artibartfast 7y ago

There may be near infinite opportunities to invest, but that does not mean they can be profitable. Also, if something is a good investment, it doesn't mean it is a good investment for a given company.

digitaltrees 7y ago
That’s true and a good general guide but the current incentives for the executive team to under invest in long term health of a business and boost short term profit are overwhelming this rational analysis.
- s1artibartfast 7y ago
  The incentive for the executive team are set by the board and shareholders, who could easily restructure incentives to favor R&D investment. Whether is this is good for long term profit will be different from case to case. I worked at a company where annual goals routinely included invest X billion on new technology acquisitions. Some of this money sticks and some doesn't.

throw0101a 7y ago

> It’s literally impossible to exhaust R&D Opportunities. Tell that to AAPL: how many projects got cut when Jobs came back to run the company in the 1990s. Just because you can spend time on something does not mean you should. A company has a finite amount of employess, who have a finite amount of hours of daylight, with competitors nipping at their heels.