Study: the higher productivity growth of the biggest companies, including Amazon, Google, and Microsoft, results from investment in their own technology
The secret of success for Amazon, Google and Microsoft is how much they invest in their own technology Tweets: @greg_ip , @mims , @calebwatney , @mims , @steven_norton , @mims , and @skupor Tweets: Greg Ip / @greg_ip : Important column by @mims: how investment in proprietary IT (vs externally-developed) creates monopoly, separates winners from losers, fuels inequality, citing research by @JamesBessen https://www.wsj.com/... pic.twitter.com/twKRWrgq8C Christopher Mims / @mims : Here is a super important thing that we don't talk about enough:Almost all of the increase in income inequality from 1978 to the present can be accounted for by the difference in wages between top performing firms and everyone else. 1/http://www.wsj.com/... http://twitter.com/... Caleb Watney / @calebwatney : An interesting @mims article and related @JamesBessen paper. To my mind there are a few key questions: 1) Why aren't more companies successful in IT investments? 2) Why isn't this being arbitraged by employee sniping in areas without non-competes like SV? https://www.wsj.com/... Christopher Mims / @mims : And now we have some idea what's driving unequal growth in productivity of top-performing firms — it's how they build and use *their own, proprietary software and other IT/technology* 2/http://www.wsj.com/... http://twitter.com/... Steven Norton / @steven_norton : “It's worth asking whether modern information technology has built in a kind of natural law that says we're destined to buy all our goods and services from just a handful of ultra-giants” https://www.wsj.com/... Christopher Mims / @mims : New paper solves (maybe) the mystery of our winner-take-all economy: It's how companies spend on a specific kind of techhttps://t.co/WKjcTG5JuJ http://twitter.com/... Scott Kupor / @skupor : In 1985, firms spent on average 7% of their net investment on proprietary IT; in 2016, that number was 24%. https://www.wsj.com/... via @WSJ