The Newark Star-Ledger has an
article about the downfall of AT&T
research. Quantum Algorithms has some follow-up quotes by Bjarne
Stoustrup.
No doubt that these industrial research labs can produce great ideas
and results especially at the scale of AT&T or Bell Labs before
the split. But the business model doesn't work; AT&T failed to
capitalize on most of the innovations of its labs nor has any
corporate labs with an open and unfettered research staff produced
valuable intellectual property for that company. If a corporation
tries to limit an open and unfettered environment, the best scientists
will often leave for other labs or academia.
Bell Labs/AT&T had a lengthy history helped along by a telephone
monopoly. But until someone finds the right business model, we will
never see a truly self-sustaining industrial basic research lab.