Being Private – The New Competitive Advantage

Amar Bose, founder of the company that bares his name, believes they out-innovate other companies because they are privately held.

A key to his company's success, Bose says, is that it doesn't have to answer to shareholders. At a time when many public companies are trying to jumpstart their innovation engines, Bose believes privately held companies enjoy an R&D advantage precisely because they are not accountable to Wall Street or federal regulators. That's why the former MIT professor, who launched his company 40 years ago with a $70,000 stake, can pursue his passion for teaching and research and thumb his nose at conventional business practices.

Maybe sooner or later shareholders of public companies will come to understand that focusing on long-term success is the best way to run a business.