Big is beautiful?

Interesting article concluding:

The key to promoting innovation (and productivity in general) lies in allowing vigorous new companies to grow big and inefficient old ones to die.

So support efficient start ups and efficient big companies.

Big companies do have three advantages over small companies:

- economic activity is driven by big ecosystems

- globalisation puts a premium on size

- challenges for innovation involve vast systems such as education and health care.

So start in the Cambridge Cluster and sell to a big company – what we have always done?

Hat tip: Schumpeter in The Economist 17 December 2011, page 122

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