[rockemsockem]

The reason why startups continue to make things that big companies don't is because your assumption that big companies *can* do it is wrong. They cannot due largely to organizational challenges and inertia in one direction or another. It is very rare that a large company successfully continues to innovate indefinitely.

[tarunkotia]

Also known as Innovator's Dilemma https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma

Most established players don't want to cannibalize their existing market by launching a product in a niche segment. Sales and Marketing $$$ eat into the profits which is not easy to justify when you are profitable. If you are fighting for your survival then it's easy to reallocate resources to fight.