The Innovation Stall

Do companies push old technologies to their clients or make it harder for them to access the newest techs? I limited experience as a client says the answer is yes.

For example, in Brazil, I still must hire a combo of cable TV and a telephone land line to be able to have cable internet, which is the only service that I’m interested at. If I try to opt out of these two services that, I repeat, I have no interest what so ever, I get a bad (more, much more, expensive) cable internet contract. And because pretty much every cable provider does the same, it does not matter if you go from one to another.

In another anecdotal example, a month ago (December 2021!), when I went to a touristic small city in the northeast of Brazil, if and when I could get a mobile internet connection, it was always 3G. Sorry, actually I got 2G in a few places. I could not help thinking how do we still use 3G when there is 4G available (not to mention 5G)?!

My friends working at large corporations disagree though, and strongly believe their companies do their best efforts to bring the best available tech to their clients. And they have their anecdotal evidences too.

It was difficult to conclude anything based in so much anecdotal evidence from one side or the other.

It was only when I finished reading Matt Ridley’s ‘How innovation works‘ that I had facts and the words to counter argue with these friends. I have posted some quotes from the book on twitter over my reading:

Just finished "How Innovation Works: And Why It Flourishes in Freedom…" by ⁦@mattwridley⁩ https://t.co/lrIEjVZeM2 pic.twitter.com/oLg893T6J9

— tagomago | Mauro Rebelo (@tagomago_me) February 5, 2022

This quotes came from chapters 11 and 12, were he discuss the challenges to innovate.

Maybe the best to start is a quote that I actually didn’t tweet

This is totally in line with something a friend tolde me: “The incumbents have to be challenged by the innovators”. But are they being challenged?

This is more in line with my ‘boots on the ground’ experience than the threads of deals closed over Twitter that I see here https://t.co/YQt8qkHSoA pic.twitter.com/AyD8Agu5MG

— tagomago | Mauro Rebelo (@tagomago_me) February 5, 2022

⁦@mattwridley⁩ is never afraid of touching the sore spot https://t.co/qNUAaEMsCl pic.twitter.com/wZqSsw3xBz

— tagomago | Mauro Rebelo (@tagomago_me) February 5, 2022

“The problem is even worse in Europe, where creative destruction has almost ground to a halt in the cuddly embrace of the European Commission with its tendency to write rules that favour incumbent firms. Of Europe’s 100 most valuable companies, none–not one–was formed in the past forty years. In Germany’s Dax 30 index, just two companies were founded after 1970; in France’s CAC 40 index, one; in Sweden’s top fifty, none at all. Europe has spawned not a single digital giant to challenge Google, Facebook or Amazon.”

How Innovation Works: And Why It Flourishes in Freedom by Matt Ridley https://amz.onl/fOQKy9p

A bit more to it here:

https://t.co/oyT7gHIF5l pic.twitter.com/cDUlyMmC95

— tagomago | Mauro Rebelo (@tagomago_me) February 4, 2022

Which side are you? https://t.co/148I2CG5kJ pic.twitter.com/hocDRbtAeS

— tagomago | Mauro Rebelo (@tagomago_me) February 2, 2022

The final blow is here:

How do you profit? https://t.co/XQxGcn7e24 pic.twitter.com/KCXVquyXDF

— tagomago | Mauro Rebelo (@tagomago_me) February 4, 2022

I do feel that, the larger the client (or the company), the more energy will go into lobbying than into innovation.

The fight between complacency and innovation in the 21st century will be a good one to watch. I’m sure which side I’ll cheer for.