Just as an aside to your final point: I think a case can be made that huge software companies generate gigantic sums of cash. They have to do SOMETHING with th

Just as an aside to your final point: I think a case can be made that huge software companies generate gigantic sums of cash. They have to do SOMETHING with this cash. They could give it back in dividends but most investors would prefer they instead used their internal cash-multiplier machine because it probably runs better than their own would should they have to reinvest dividends. So what do you do? Acquire. Look at Microsoft. Look at Google. Adwords, Android, Chome, Maps, Voice, YouTube, etc, etc, etc, all acquired. It still takes a talented company to marshal the resources and assets of these acquisitions into a successful, larger conglomerate. And in the cases where the sum is more valuable than the parts, THAT'S innovation just the same as a homegrown product or language.