Corporate restructuring and outsourcing may hinder firms from future innovation.
The article discusses how company restructurings like mergers and acquisitions can lead to more outsourcing of important tasks to outside companies. This can happen because the restructuring process changes how the company works, making it more appealing to outsource tasks instead of doing them in-house. When companies do a lot of mergers or leveraged buy-outs, they might have fewer resources to learn new things or develop new technologies. Relying too much on outsourcing can then prevent the company from keeping up with new technologies and industries in the future.