What's Google X if not a research lab?
(For that matter, the rest of the company isn't all that different: you have a fair amount of freedom to experiment, but if Larry wants something to happen a certain way, it happens that way.)
Which is pretty much a definition of a good research lab.
> ... they don't want their competitors to hire.
i.e. that the purpose is not to get them to do research for Google, but to stop them doing research or development for anyone else.