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Article from Issue 214/2018
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Our whole economy is based on the idea that competition leads to innovation. Interestingly, the cause of innovation is best served if no one ever wins that competition. A company that truly succeeds in defeating all its adversaries gets complacent, and innovation tends to dry up.

Dear Reader,

Our whole economy is based on the idea that competition leads to innovation. Interestingly, the cause of innovation is best served if no one ever wins that competition. A company that truly succeeds in defeating all its adversaries gets complacent, and innovation tends to dry up.

For much of the PC era, Intel and AMD dueled for market share in the competitive PC industry. Intel was always bigger – well, way bigger – but AMD found ways to stay competitive. A computer with an AMD processor cost just a little less, which gave a push to demand, and AMD could match Intel with some serious engineering chops, which kept the competition lively. Intel would come up with some new innovation, and AMD would find a way to do something similar, or at least close enough to achieve near-equivalent performance. And AMD always put the emphasis on economy, forcing Intel to stay real with pricing.

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