Innovation & Finance & Crypto

Companies live and die by innovation: those that invest in it prosper, and those that don’t become obsolete. Even monopoly power does not create a moat to defend against innovation: the railroad companies’ monopoly power did not prevent their industry being overtaken by the rise of the automobile and aviation.

Innovation comes in two flavours: technological and business model innovation. The former is about developing new products (e.g. driverless cars, disposable nappies) , or investing in technology and know-how that makes manufacturing or distribution cheaper or better in…