[cleaver]

I don't think they lack in research, or at least spending on research. I think the main thing they lack is a culture of innovation. They sat on their laurels as the market leader and they avoided cannibalizing any of their revenue streams.

[mtgx]

That's a good point. Many companies are either too unfocused with their research, so whatever they are researching is almost completely irrelevant to their business, or even if they do invent something innovative, it's the managers who don't give the invention any chance for fear they might disrupt their current businesses.