The House Antitrust Report is a Major Step Toward Reining in Big Tech

By • on November 5, 2020

The Brookings website noted that a recent Wall Street Journal story on a Congressional report with the headline “Big Tech Buyout Fantasies May Be on Hold” illustrates an additional problem created by the failure to integrate antitrust proposals into a larger policy framework. Is the House report’s recommendation to discourage the tech giants’ acquisition of startups good for innovation? Perhaps unintentionally, this recommendation undermines the open innovation system described in the work of Berkeley Business School professor Henry Chesbrough and practiced by Silicon Valley entrepreneurs over the last 30 years. This open system allowed established companies to outsource much innovation to agile startups and then bring the successes into the firm when they have proved themselves.

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