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Hazlett in WSJ: Innovation Process Delivers the Goods

Writing in the Wall Street Journal, Professor Thomas Hazlett looks at some essential differences between the purportedly "closed" Apple iPhone system and Google's "open" Android and concludes that "The magic is not in a particular model but in the dynamics of platform competition."

"As of now, the Android universe is fragmenting. The hands-off 'openess' of Google lets device makers put out whatever products might generate sales for them without giving thought to what makes the whole ecosystem better," says Hazlett. 

"Now top developers, according to numerous reports in the tech press, are ditching Android for Apple—for a company that maintains dictatorial control over its content. That very coordination is yielding unmatched benefits, particularly in customer ease-of-use that drives iPhone and iPad owners to be truly massive consumers of apps and online media," he states.

The iPhone Turns Five, The Wall Street Journal, June 26, 2012. By Thomas W. Hazlett.

Excerpt:
"The late Joseph A. Schumpeter put it well: Capitalism 'never can be stationary....The fundamental inpulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.'

"That relentless innovation process delivers the goods."

Read the article