Why quarterly capitalism slows innovation down

Source: FutureShapers

Author:  Nikolay Sudarikov

“Why quarterly capitalism exists Usually, there is a natural conflict of interest between investors, founders, employees, and executives. Far more often than not, when the company becomes public, the founders already sold the majority of their shares, and they can not influence long-term company strategy anymore or indeed pursue the original mission statement.”

“Those money-making machines need to be watched very carefully, like any other machinery working on the edge of their capacity. Losing focus can determine the fail of the investment campaign as it simply might be too late to withdraw the capital from the “dead horse”.”

Can companies innovate under short-term pressure?

Apparently, the answer is – “yes, but only to a certain degree”. The limitations are undeniable. Significant innovation these days requires many components, such as technology, data insights, talent, and extensive support from the top. All of the ingredients mentioned above require time and resources and financial investment, not to mention focus and commitment.”

Source – full article: Why quarterly capitalism slows innovation down – The Future Shapers

%d bloggers like this: