this post was submitted on 19 Jan 2024
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Work Reform

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[โ€“] marcos 5 points 10 months ago (1 children)

But then, an R&D organization doesn't have short term profits.

[โ€“] [email protected] 6 points 10 months ago* (last edited 10 months ago)

Correct. R&D only creates future value. Usually in the VC model, R&D is done by individuals or small groups and then funded (bought) by VC to get it to market. So even though the R&D do-er can cash out their future profits for immediate profits, the value of that R&D can't be realized immediately.

I personally think the VC and legacy models are currently competing, and VC is winning out. As we see here, even large, established companies aren't immune to impinging VCs.