@goafrit, excellent point (and the second time i've heard that in 24 hours). The ability for entrenched companies to innovate is limited by their product mindset (as Clayton Christensen has pointed out for years).
All is not doom and gloom though: I visited a company yesterday that is an interesting startup in the analog space and got funding in 2010 (Touchstone Semi). The bad news? They were the only valley IC startup to get money that year.
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