> Perhaps one reason startups work so well…
If you take any individual startup its probability of success is very low. Most startups fail. There is a very extreme survivorship bias at work when people say startups work well or that particular tactics are why startups are great etc (pointing at a successful startup).Startups as a whole produce a lot of innovation because there is this extreme Darwinian process where the vast majority fail and a few succeed but you have a huge amount of risk-taking in parallel in a very compressed time frame.
Government generally doesn’t have the luxury of failure because the consequences for people’s lives are too extreme. So by definition government is going to be slower-moving and more risk-averse. They are essentially paying to reduce the standard deviation of possible outcomes because they can’t afford the risk of the extreme negative tail.