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I think Microsoft's situation is even more sad than that.

How much cool new stuff as Microsoft Research dreamed up that got snuffed out when the management got wind of it but didn't think that it was worth productizing?

IBM had the same problem -- an amazing think tank, laden with talent (probably all of IBM's worthwhile talent), churning out amazing R&D projects... very few of which ever went beyond prototypes. Like IBM's PDA, for example...



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