>
> On 9 August 2011 20:06, Josh Berry <[email protected]> wrote:
>
>> 2011/8/9 Cédric Beust ♔ <[email protected]>:
>> > the existence of patent portfolios is a
>> > strong driver in big companies acquiring little ones, which I see as
>> good
>> > for the industry and innovation in general).
>>
>> Do you have anything to back this?  It always seemed to me that
>> trademarks/marketshare and talent were the largest drivers of
>> acquisitions.  At least the successful ones.
>>
>>
> More to the point, what proof is there that acquisition in general is good
> for the industry and innovation?
>
> I would have thought that having more, and smaller, companies is going to
> do better in terms of job creation, range of products on the market, quality
> of customer service, distribution of capital back into the economy, etc...
>

It seems like a bit of a catch 22. The existence of small companies looks
important to me, but if the odds of being acquired are very low, very few
entrepreneurs/investors will take the risk to create one. It looks like we
need to maintain a fragile balance of always having a reasonable number of
small companies with a reasonable percentage of them being acquired, but not
too much nor too little.

Sounds like the very definition of unstable equilibrium.

-- 
Cédric

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