If it is the case that innovation in HW is lagging behind innovation in SW at this time, then it would seem that investors have something to do with the phenomenon, not just the entrepreneurs. When I read the line below today, it was alarming to me:

>Then he hit a roadblock. A big one. Migicovsky couldn’t raise more money. Few investors were interested in betting on a hardware startup, or dealing with the headaches that often come with manufacturing goods [1]

Perhaps the bulk of entrepreneurs and investors are after the "quick money". I know some pure finance types currently at Tristate area hedge funds contemplating a switch to Venture Capital (I urged him to reconsider, for a variety of reasons). If hypothetically, investors pat the entrepreneur on the back for the quick flip web startup, and the entrepreneur pats the investor on the back for financing his quick flip web startup, then is it any wonder that perhaps, HW entrepreneurs get lost in the fervor?

Hypothetically.

[1]http://go.bloomberg.com/tech-deals/2012-04-17-rejected-by-vc...