The NYTimes has an interesting article on disruptive technology and the new economy - good advance reading for the December 7 Tuesday@REI session "Unique Value: Competition based on Innovation Creating Unique Value".

The 12/6/04 NYTimes article concludes:

Competition has been a spur to innovation, driving companies to find
ways to do things better or cheaper, to gain new markets and reap
higher profits. But competition can also diminish the incentives to
develop new technologies if, as happened with many dot-com initiatives,
innovations are easily replicated by rivals.

"Today, with a
much more competitive and deregulated environment there are very few
companies with the kind of financial cushion to take the 10-to-15-year
long-term view," said Mr. Slywotzky of Mercer Management. "Those
engines of innovation have shut down."

Read the entire article linked here.