Maybe they won't create it, but they'll buy it.<p>Most large companies correctly believe that the capital required to create a new phenomenon from the ground up would be too expensive than to simply buy it once one looks promising. The number of startups and capital expended just to create such a phenomenon (a big phenomneon, not mediocre in the grand scheme of things) is huge, so acquisitions are a good deal.
To a certain degree he does have something. Big companies CAN work on problems startups can't. Lots of people can come up with ideas, but certain concepts aren't going to get huge VC funding easily if they are complex and require infrastructure. More complicated = More likely to fail. Having to establish that infrastructure is just one more potential failure point.<p>Google acquires startups that they think are interesting. Maybe they can have it both ways to a certain degree.
Focusing on problems that impact lots of people does not make Google Microsoft. Google is still innovating quickly -- see pubsubhub, chrome, wave, android, maps, gmail, etc.<p>You can argue that Google's products lack the personality of startups, or that Google hasn't excelled in social applications, but taking a quote, bringing up successful startups, and then saying -- i heard that at microsoft therefore google is microsoft -- is absurd.
I think he doesn't take into account the little side projects that people do at Google. plus Wave looks a lot better than facebook to me and people will move in droves soon because people are not so wedded or happy with facebook
Why is GOOG always compared with MSFT ? They are way more innovative than MSFT IMHO. Atleast I love most of their products. Also they are into many other things like Google got the APPtitude competition, Google summer of code, Google CodeJam etc. As a B.tech Computer Science student most of us dream of google and not M$. Sorry if my opinion is rude and crude !!