[DrScientist]

One of the challenges is that there are always more smart people outside the org than in - so the chances of the same company out innovating the world again and again is slim.

On the other hand, if your management decide to cut R, and just buy in the innovation at the right time to develop it - if you don't have any internal R people trying to do the same sort of things you will find it really difficult to make the right acquisitions at the right time.

So you need both - and treading that line is really tricky.

I also think that having people with an R mindset is important - people who are interested in pushing the envelop, doing things better etc.

Having people like that in the organisation means you are less likely to be blindsided by a shift in technology that could kill the company.