Thread by @MrAlanCooper

In general, innovation does not come from large, established corporations. Yes, there are a few big companies that have figured out how to sustain their creativity, but they are very rare. 1

Innovation almost always comes from one or two people, working outside of large corporations. 2

Typically, that person or pair of entrepreneurs tried to develop their idea within the organization and were rebuffed. In frustration, they leave and do it on their own. 3

Once the tiny new company has proven the product and the market, and has a demonstrated cash flow and a credible story for growth, some large company buys them. And that is how large, established companies “innovate." 4

Credit where it’s due: Large companies are good at growing and developing established, proven products and established, proven markets. Tiny little companies, not so much. 5

But, basically, for a big company to find innovation, you have to grab them by the balls*, drag them to it, then mark it with a neon sign and a loudspeaker. 6

(*I suspect it would be easier if the corporate bosses had ovaries instead of balls)

So, what’s the difference between that pair of disgruntled creators and that large corporation? The former can innovate, the latter cannot. What’s the difference? 7

Okay, I’ll answer that question. 7A

The pair of creators lack management, stockholders, managers, schedules, and meetings with managers. They are, however, in a hellish hurry because they have no means of support, and they are driven to create quality because their lives depend on it. And because they WANT TO. 8

My point here is that there is some goofy idea that corporations provide benefit for us citizens. Occasionally they do. But if so, it is a side-effect of them creating benefit for themselves. 9

In Silicon Valley, as in Washington DC, there is a powerful belief that “The Private Sector” is efficient, good, morally neutral, innovative, and the engine of quality-of-life. Sadly, nothing could be further from the truth. 10

I’ve been an entrepreneur and business person for the last 40 years, and I’ve been in the boardrooms of many giant corporations, so I’m speaking from experience when I say, The Private Sector cares only about itself. 11

Except that what I just said isn’t actually true. If The Private Sector cared about itself, it would be preserving our climate, environment, resources, people, education, freedom, safety, health care, equality, justice, but it is clearly not. 12

The Private Sector is like a shark with an eating disorder, eating without pause, eating without hunger, gorging itself on profits until it dies a bloated and rotting corpse, taking all down with it. 13

I’m being very positive and upbeat today. 14