I don't want to get into an extended discussion, but in my opinion, most web based start ups don't do innovation. They build a small service people want and the

I don't want to get into an extended discussion, but in my opinion, most web based start ups don't do innovation. They build a small service people want and then 'coast' quite profitably and happily on that. The heavy duty R&D and innovation requirements start coming into play for different sorts of shops. E.g., enterprises or r&d-driven consulting shops. If you don't have R&D/innovating driving improvements to your products, you will wind up dead in the water.