Does Innovation through Acquisition Count?

I hear a lot of people complain that Microsoft isn’t innovative. When you try to point out innovations that Microsoft has made, they claim that all the “good innovation” is via acquisition. Even if that were true, does it matter?

The nemesis of any startup is getting good distribution. It’s incredibly expensive and difficult to build great distribution channels. Microsoft, by contrast, has distribution like no other. If Microsoft buys a great product and gives it distribution, why is it that Microsoft shouldn’t get credit for innovation? The fact is that the startup couldn’t get the distribution on their own. Microsoft provided it by buying the company and using it’s distribution. Isn’t that a form of innovation in it’s own right?
Microsoft deserves full credit.

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