1. I agree with Google's approach. Microsoft spends $10 billion a year on R&D yet I can't think of a revolutionary product they've come up with (Kinect was bought from the outside)
2. I notice the word "patent" is never mentioned in this piece. A big reason companies like Microsoft and Intel have research labs is to patent protect themselves in the future (wasn't there an article on HN just a few days ago that mentioned Google's anemic patent portfolio?)