I've been reading wiki on this Dilemma, it's so clear now thanks. So the dilemma is with the Incumbent Engineer trying to squeeze innovation out of existing technology were there is little to be gain on top of the S-Curve.
But why can't a company, with cash, recognize this dilemma and set aside money and time, separate budgets, NRE type stuff? Sure it bites into their margins, but can't they sell that alternative as the only way out? Set a 5 yr horizon with small wins along the way?
Or are the incumbent shareholders just shallow because they don't believe there is an issue at hand? Plus, I don't know how many times someone in their early 60's or higher would say to me "Who cares, I won't be around for this whole mess anyway." So maybe the some of the larger more elderly investors just prefer to ride it out.