I get what you’re saying, but IBM is not a poster child for what Google or anyone else should be doing. IBM has been an also ran for a very long time; huge in size and very profitable with occasional innovations but a fraction of what it was when it was in its heyday.

IBM stayed at the forefront for so long because the barriers of entry into the computer sector were too high. But in terms of innovation Microsoft demolished IBM, and Google demolished Microsoft. Now Google is just another big incumbent, very profitable but unable to innovate like it used to and instead beholden to shareholders short-termism just like Microsoft and IBM.

The bigger problem is these companies could stifle innovation through sheer scale and market clout, perhaps to a detrimental degree in the US in particular going forward. They try and mop up all the talent and then put them to work in dull areas. For example Google is largely just an advertising company that dabbles in other things now.