Arguably the most famous corporate research lab, Bell Labs, was funded by AT&T when it had an effective monopoly on phone service. When companies are in a more competitive environment, which I think is better overall for the nation's standard of living (remember when long-distance phone calls cost serious money?), they have less freedom to make investments in fundamental research that have negative expected value for their shareholders.
The focus is on the short term rather than the long term. The older I get the more I see that this is a function of the generation born in the 40s-60s. Its all about ME and RIGHT NOW rather than what is best for all and in the long run.
It takes 5-8 years to come up with truly original ideas and then to bring them to fruition. Given that the average tenure at CFO/CEO is 5 years, that leaves little room for the long view.
This is one reason why private equity is making a comeback.
