Pete's Posts

Does Consolidation Put Innovation at Risk?

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Comments (2)
  1. Bill Kohnen says:

    Given the high cost to bring a device from development to market of up to 50 million or more in today’s paradigm one might argue that there can only be innovation with the scale to support it so consolidation is needed. Although as the article suggests the temptation might be to have the innovation be closer to fab process for efficiency, yield etc… rather than real breakthrough application innovation.

    That being said history shows time and again that technology disruption will come about that will destroy existing paradigms and perhaps the massive post consolidation companies will struggle with a big infrastructure based in old models. Kind of like what is happening with cloud computing for tradition software and even hardware companies.

  2. Shrikant Lohokare says:

    Consolidations happen in mature industries because in many cases innovation has slowed down and growth to keep investors happy happens only through M&A. This in turn reduces innovation further since competition is reduced. Its a vicious cycle.