Maybe. We might also see more companies going under or not having enough funding to actually innovate.
What seems to work best is a medium-sized business run by a fair, passionate individual who sets the direction of the company. Something like Valve, or successful indie game devs. If my company were a democracy, our revenue would likely plummet because we'd just vote for whatever we wanted to work on, not what actually sells.
I think there's a lot to criticize about publicly traded companies, but good execs do have value. Maybe democratic companies can work well in some areas, but I think it's a case-by-case thing.