IEEE Spectrum has a fun and worth-reading article called “How VCs Thwart Innovation”. My view: This is a canard. VCs are in the business of making money for their LPs. Sure, sometimes that is done by creating groundbreaking companies, but at least as often (if not more often) it is done by hard work in existing categories where others aren’t executing.
Faulting VCs for not creating enough innovative companies is like faulting investment bankers for not taking enough innovative companies public. In both cases — VCs and investment bankers — the principals are just trying to make the most money for investors, creating (or taking public) innovative companies is a byproduct of that effort, not the whole goal.