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If you look at Google's top products, most of them come from startups they bought: YouTube, Blogger, Docs, Maps, Earth...

I can only think of GMail and Reader as products that were originally developed inside.

I believe Google Search was developed internally.

Really? I thought it was licensed from Stanford.

The technology was built by Sergey Brin and Larry Page as part of their studies at Standford. Google did not just buy their page rank algorithms.