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The same way the tech industry currently does it. You spend all your profit on research, product development, marketing, etc. to increase your overall revenue w
by natpalmer1776 2y ago
The same way the tech industry currently does it. You spend all your profit on research, product development, marketing, etc. to increase your overall revenue when (in the short term) you could simply stop spending money on all those things and keep only enough engineers on-staff to keep your existing products stable and customers happy.
By comparison, a construction company cannot stop buying materials in order to continue generating revenue, and they cannot reduce their workforce significantly and continue taking on the same types of jobs.
In the instance of Bell Labs, those researchers were the 'unnecessary to business' route through which to increase revenue (by both increasing costs and also building a technology-based moat) and since those who control a company typically only profit by 'skimming the cream' increasing revenue without increasing profit seems like an excellent way to increase the value of the company to those who are interested in doing so.