I'm all for giving away ideas, thereby making them communical property... and I do think this helps the world advance... but I also have nothing against keeping (what you think are) your clever ideas to yourself in the name of being able to sell something based off of them either.
You can compete on service too -- and this is exactly what then open-source
*software* guys do, some entirely successfully. Granted, what they make is peanuts compared to what Microsoft makes, but not everyone wants to become such a huge company anyway.And don't forget quality (real or implied) -- Sony and Apple both make very good margains based on the perception of their goods as being higher quality than their competitors.
Vendor lock-in is a popular pasttime as well.
But only a small percentage of companies really have any truly unique technology; the vast majority of the economy runs off of providing goods and services that are quite well understood. The sad truth of the matter is that the guys in the marketing department often do have a lot more to do with a company's success (or not) than the guys back in engineering!
Another factor to building a successful business is just coming up with the raw talent: You can be doing one of those things that's been completely understood and very well-documented in texts for ages (open a restaurant, build some simple microcontroller-based widgets, write apps for iPhones, etc.), but be unable to find enough people who are savvy enough to put together an appealing product. This, too, applies both to your engineers and your marketing guys.
And of course the people are nuts anyway. How is it that Facebook has a valuation of $100B, when Apple and Microsoft are ~$220B... and clearly do an awful lot more for real productivity in the world than a social networking web site ever has?
If you don't mind my asking, what did the company you used to have do, James?
---Joel