Long Term Research
Many years ago, when I was still a part of a centralized corporate research and development organization, we interviewed an employment candidate who was an intern at Bell Labs. At Bell, she was building a computer to model the evolution of the universe. No, she wasn't programming a computer to do a model, she was assembling computer hardware that would do the model many time faster than you could on a supercomputer. Why would a telephone company devote money and resources to a project this removed from telephony? The knowledge gained by building such a purpose-built computer might be used in areas not then envisioned. A similar exercise by Bell Labs scientists, Arno Penzias and Robert Wilson, led to their 1978 Nobel Prize in Physics for the experimental confirmation of the cosmic microwave background radiation from the Big Bang. Probable spin-offs from this project were advances in low-noise microwave circuitry. At the very least, the spin-off was shaping Penzias into Vice-President of Research at Bell Labs.
Another unusual research area pioneered by Bell Labs is the chess-playing computer. Ken Thompson of Unix and C programming language fame and his colleagues built a chess-playing computer called Belle in the late 1970s and early 1980s. Like the cosmic computer mentioned above, Belle was a purpose-built machine, and it was the first computer to receive a master-level rating in chess. The technology behind Belle was considered so advanced that it was confiscated by the US State Department for violation of ITAR restrictions when it was being shipped to the USSR in 1982 for a computer chess tournament. Bell Labs was fined $600 for this supposed infraction of ITAR rules.
These Bell Labs projects are not just isolated examples. IBM has traditionally funded projects that seemed out of the ordinary for a corporation. IBM had a long-standing research effort in chess-playing computers. The IBM Deep Blue chess-playing computer defeated world chess champion, Garry Kasparov, in 1997. Deep Blue was also a purpose-built machine, employing several hundred VLSI chips specially-built for chess play. Although Deep Blue wasn't a general purpose supercomputer, it ranked as the 259th most powerful computer in the world at the time of its match with Kasparov since it had a processing speed of 11.38 gigaflops. The spin-offs from Deep Blue are in parallel computer architecture and software.
Of course, when we talk about spin-offs, the NASA space program comes to mind. Putting a man on the moon is an abstract notion without any immediate financial payback. However, integrated circuit development owes much to NASA investment, and the US space program gave us communications satellites and freeze-dried food [1]. In an earlier age, the Manhattan Project gave us nuclear energy and nuclear medicine. The physicist Michael Faraday (1791-1867) was once asked about the utility of his research. He replied, "What use is a baby?" In a similar encounter with the Prime Minister of England, Faraday said, "In ten years you will be taxing it!"
The centralized corporate research lab is now a thing of the past, and its demise has eliminated such long term research programs. In my experience, the idea that similar long term research is now the province of the research university is incorrect. University programs are not funded at a similar scale. Funding agencies have been funding more short-term research, and they have been looking for immediate spin-offs, especially in biotechnology. Many professors are looking towards applied research that can help them launch their own profitable companies, or generate patent royalties.
Penzias wrote a vieled obituary of the corporate research lab in his official Nobel Prize autobiography [2]
"By the early 1990's, my life had settled into a familiar - if not entirely comfortable - routine. The joy and satisfaction that I found in helping to help shape exciting new ideas was offset by onerous management chores - most notably, my annual task of getting adequate financial support for my organization's budget requirements from our parent corporation. Beset by competitors who didn't have research labs of their own to pay for, AT&T's leaders nonetheless did their best to provide for its "crown jewel". As one year followed another, I did my best to repay that trust by helping to turn some of our scientific "gems" into profitable jewelry."
References:
1. NASA Procedure SS-F-0224, Equipment, Formulation and Processing Procedures for Tofu with Hot Mustard Sauce
2. Arno Penzias Autobiography.