There is a fantasy in Redmond that Microsoft products are innovative, but this is based entirely on a peculiar confusion of the words "innovative" and "successful." Microsoft products are successful - they make a lot of money - but that doesn't make them innovative, or even particularly good.
Robert X. CringelyApple isn't the next Microsoft, you see. Apple is not the next anything because the role it aspires to transcends anything imaginable by Microsoft, ever. Google is the next Microsoft, so Google is seen by Ballmer as the immediate threat - the one he has a hope in hell of actually doing something about.
Robert X. CringelyHewlett Packard at one point had only three private offices. One belonged to Hewlett, one to Packard, and the third to a guy named Paul Ely who annoyed so many coworkers with his bellowing on the phone that the company finally extended his cubicle walls to the ceiling.
Robert X. CringelyThe companies that can afford to do basic research (and can't afford not to) are ones that dominate their markets. ... It's cheap insurance, since failing to do basic research guarantees that the next major advance will be oened by someone else.
Robert X. Cringely