Why fat bank accounts hinder innovation

08/19/2010 | Newsweek

The downturn will likely drive a new wave of innovation by making it harder for startup companies to attract outside investment, says Harvard economist Clayton Christensen. Companies that are awash with cash don't have to worry about being creative, Christensen argues, while starving startups must innovate or die. "The more capital, the longer a company can go without testing its fundamental assumptions," he argues.

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