Why the Behemoths Buy Startups – The Business of Research & Development and Fortune 500's

Original Post on 16-Jun-06 3:47pm
The booming 90′s and the tech bubble produced some of the fastest paths to riches, especially for entrepreneurs. Startups with good ideas were quickly snapped up, without even a completed product. Thankfully, that exuberance burst, and the idea must at least be fleshed out. This system nearly makes corporate R&D budgets redundant and cost ineffective.

First, a bit of history: in the olden days, companies handled research and development in house. Costs for a mainframe computer were more than all but the largest organizations could afford. Think of Xerox PARC. The company developed everything, from the [...]