Where has all the innovation gone? Leaving VC's aside - who we know are waiting for the IPO window to open - Morgan makes clear a very important point we've discussed a few weeks ago: corporates are absolutely awash in piles of cash after a few good earnings seasons. This is as big a brake on innovation as VC's current (rational but lame) risk aversion.
I won't go into a tedious discussion of capital flows to shareholders (ie why most firms don't pay dividends). I'll just say that this is a big hotspot to watch - and firms will, I think, be forced by the market to redistribute this cash rather then being given the latitude to invest it themselves, because of the current state of corporate governance. That's when the next innovation cycle will pick up in earnest.