The trick is to create a Bell Labs and not an Institute for Advanced Study. For programming related things (assuming that's the domain?), that's a hard line to draw. Getting regular interactions with the ycombinator classes would be one way to combat it.

If you're wondering about the criticism of IAS, see this quote:

"When I was at Princeton in the 1940s I could see what happened to those great minds at the Institute for Advanced Study, who had been specially selected for their tremendous brains and were now given this opportunity to sit in this lovely house by the woods there, with no classes to teach, with no obligations whatsoever. These poor bastards could now sit and think clearly all by themselves, OK? So they don't get any ideas for a while: They have every opportunity to do something, and they're not getting any ideas. I believe that in a situation like this a kind of guilt or depression worms inside of you, and you begin to worry about not getting any ideas. And nothing happens. Still no ideas come. Nothing happens because there's not enough real activity and challenge: You're not in contact with the experimental guys. You don't have to think how to answer questions from the students. Nothing!"