An insider writes about Microsoft research group The article has some good comparison views with the fabled IBM research group. To be a truly world-class research lab, you need to do four things:
1. Hire great researchers
2. Empower them to do great research that advances the state of the art
3. Publish it in peer-revewed journals and proceedings, thus getting the validation from the larger research comunity of the quality of your work
4. Get it into products.
Interesting read
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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld "All views expressed are my personal views are not related in any way to my employer"