The Economist (1.3.2007) investigates in a grant piece the changing role of research and development (R&D) in today's IT industry. What was formerly R&D is now (in the IT sector) blurred together and much more market driven, say R&D changed to 'rD', with a big emphasis on the D. The article gives a great view of U.S. corporate R&D management, as for the Economist journalists talked to many key figures at Google, IBM, HP, Xerox PARC, Microsoft, Cisco, Yahoo.
The Economist: "The Google method means researchers are part of development, says Google's CEO, Eric Schmidt. The company employs very small teams to work on a small number of ideas, some of which may turn into big hits. Failure is an essential part of the process. 'The way you say this is: Please fail very quickly—so that you can try again,' says Mr Schmidt."
Also the conclusion by John Seely Brown, a former director of Xerox PARC is remarkable: "When I started out running PARC, I thought 99 percent of the work was creating the innovation, and then throwing it over the transom for dumb marketers to figure out how to market it. Now I realise that there is at least as much creativity in finding ways to take the idea to market as coming up with the idea in the first place. I would have spent my time differently had I figured this out early on," quotes the Economist.