This made an interesting connection between two discussion threads I've noticed on HN recently: (1) is there a bubble?, and (2) why is there so little innovatio

This made an interesting connection between two discussion threads I've noticed on HN recently: (1) is there a bubble?, and (2) why is there so little innovation in SV? I think the article made this claim: Innovation is risky business but hyping a social CRUD app is less so. Hence a disproportionate amount of the money and (VC manufactured) media is focusing on the latter. And these less/non-innovative companies can only match the returns of a successful innovation based business in a bubble/greater-fool environment. So both the lack of innovation and the bubble are being caused by these financial firms. This seems plausible to me (as an outsider). I would say more that we are seeing this as a direct result of the money looking for returns post real-estate bubble burst. Smart money doesn't seem to chase bubbles, but create them. The lack of innovation becomes simply the opportunity cost of an investment bubble. What's unfortunate is that I bet there are 10's maybe 100's of people like Elon Musk looking to get funding for their ideas but are being over looked by these same firms.