I'm not entirely sure what this has to do with innovation vs iteration. It's more about why don't "third world" problems get solved by startups. There are a few

I'm not entirely sure what this has to do with innovation vs iteration. It's more about why don't "third world" problems get solved by startups. There are a few answers to this: a - It's where the money is. Most of the products in the world are manufactured for and sold to the rich. That's what rich means. b - Startup founders are rich or come from rich communities. So are their investors and advisors. They are also young, urban, techie, etc. So, they see the things these markets need and make products for them. It's hard to design stuff for markets so removed from yourself. c - It's easier to start at the luxurious end for all sorts of reasons and startups are starting up. Elon Musk gave a good explanation about doing it at Tesla (offsetting the high per-nit cost of new technology). There are other reasons that explain why you find many small chocolatiers selling $30 boxes but few competing with Cadburys. Making stuff cheap is often. harder and more expensive.