Encyclopedia of Opinion
Question
Should we break up the Big Tech companies?
Position2 of 2
The Big Tech companies should not be broken up
Argument3 of 3

Big Tech benefits research and development

The industry now depends on Big Tech research and development investments to propel it forward.

The argument

The size and stability of the Big Tech companies enable them to pursue longer-term goals than would be feasible for smaller companies, which includes making massive investments into research and development (R&D). Amazon, Apple, Facebook, and Google's parent company Alphabet are all among the top 15 companies in the world in terms of R&D spending, with Alphabet and Amazon being the first- and second-biggest spenders on R&D respectively. Rather than stifling innovation, the research conducted and funded by the Big Tech companies represents a vast support network for forward-looking innovators and inventors. If Big Tech is broken up, private sector R&D will be diminished significantly.

Premises

[P1]The size and stability of Big Tech let them pursue long-term goals and make R&D investments beyond the reach of smaller firms. [P2] Amazon, Apple, Facebook, and Alphabet are among the world's top 15 R&D spenders, with Alphabet and Amazon the two largest. [P3] Far from stifling innovation, this research forms a vast support network for innovators that breaking up Big Tech would significantly diminish. [C] Therefore, because Big Tech benefits research and development, the Big Tech companies should not be broken up.

Counter-arguments

These R&D investments in private terms are large, but most real breakthough innovation happens through public funding and university models. Value created through private R&D innovation in not generally shared with the public, but is sold back to them.

Rejecting the premises

[Rejecting P1] Corporate size is not what makes long-horizon research possible: publicly funded laboratories and universities work on longer horizons than any firm, and much of the foundational science these companies build on came from that sector. [Rejecting P2] Spending totals measure inputs rather than results, and a large share of corporate research budgets goes to incremental product development rather than to the breakthroughs the premise credits them with. [Rejecting P3] The premise assumes the research would vanish rather than be redistributed, when a break-up separates the units doing the work from a single owner; the counter adds that value created privately is sold back to the public rather than shared with it, which weakens the claim that the arrangement serves innovators generally.