Definitely doesn't seem that way from the inside. We're constantly productizing new research that comes from R&D. Self-driving cars, Glass, DistBelief, etc.

In fact, one thing that's unusual about Google is how much R&D actually makes it into products (unlike, say, Microsoft, whose research group turns out great stuff but rarely does anything with it). In that sense, it's less pure blue-sky, but more applied. I think it's more akin to the Manhattan Project, Apollo program, etc - scientists and engineers working closely together to redefine what's possible. (We even internally refer to the ambitious projects as moon shots). SpaceX and Tesla are doing work in a similar vein - an virtuous cycle of innovations and research.