[pas]

R&D is done via acquisitions, basically outsourced to startups. Probably "more efficient this way". (Which is kind of true, after all if the big incumbent buys the competition, there's no real incentive to really upgrade their offering, as they just bought that too, and they can do a small symbolic upgrade. Plus eventually do the regular run of the mill, business as usual, do what everyone else does around the world, 0 risk course of action thing.)

[bumby]

Freakanomics did an interesting episode on this indicating that as companies mature they have to focus more on “maintenance” of existing business rather than R&D. Acquiring smaller businesses becomes a natural way of investing in R&D

https://freakonomics.com/podcast/in-praise-of-maintenance/