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Oligopolies rarely innovate

One of the key challenges for entrepreneurship and innovation in Canada is that so much of the economy is dominated by de facto oligopolies, often regulated ones. For instance, banking and telecom, are dominated by a few titans protected from foreign competition. So, while they may compete fiercely with each other, they are significantly protected from the real gales of creative destruction.

It is tough to innovate in any industry dominated by a few monsters in which the access of entrepreneurs to foreign capital is severely constrained as it is, for instance, in telecom in Canada.

The trouble is, oligopolies rarely innovate, and as a result they sit at home and never venture abroad.

Neil

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