The article we're all commenting on talks about Microsoft's ill-fated Tablet computer, which premiered almost a decade before the iPad. Microsoft does many things which could be considered 'innovative,' except that they never achieve widespread market acceptance.
Also, when was the last time Microsoft won with the "non-innovative innovation model" you refer to? Sharepoint? SQL Server? I can't think of any instance where this has worked in years.
If you are a philosophy person like me, this one is for you:
Classic Drucker: Wisdom from Peter Drucker from the Pages of Harvard Business Review.
It shows you what and how a pioneer in the field of business thinks of business itself. Learn from his thinking and learning pattern. They are just like common sense for business (like DStruc and Algo in programming).
I think the bottom line comes down to needs for cross-clique knowledge sharing. The possibility for a change in culture is low if there is no incentive for it.
Given that Hennessy is the President of Stanford and that he founded a successful company (MIPS Inc, when went public and was then sold to SGI), Hennessy is surely pretty wealthy.