The Innovator’s Curse
Something if a paradox from Horace Dediu: it would appear that the market value of repeated innovation is zero due to the assumption that success can’t be repeatable. But isn’t innovation supposedly valuable?
One line of reasoning he only touches on briefly in the footnotes, but that is really at the core of the answer, is that markets do punish non-innovation. When a company is disrupted and their once successful product evaporates, the market sends plenty of strong negative signal. Which, of course, ties into the broader theme that markets reward innovation, but only after it happens and only for that product/service/company. The cost of not having an innovation engine is that your company’s longevity is tied wholly to the strength of your initial innovation.