Myrhvold on inventing, and why it’s so expensive

This is a great short take on why it costs so much to invent stuff, whether you’re talking about new drugs, or the latest gadgets…when you hear how much Microsoft spends on R&D, this will give you an idea why it’s important to spend that much (video after the break).

UPDATE: Bummer, but the video apparently no longer allows embeds. You can still view the video via the link below.

H/T Gizmodo

Comments (2)

  1. christian says:

    Spot on, what he even did not say (the obvious) coming up with an idea is a whole different story and costs itself. it means thinking about something, getting a "bing" moment, convincing other people, maybe prototyping …

    Also, spending money on R&D does not translate to good R or good transfer from R to D. Just as a side note, Microsoft does not necessarily spend more on R&D than other tech firms. In "The Business of Software" (excellent book) the number of 15%/20% of revenue is said to be most common for tech/IT companies. Also, if you look at the compound R&D you will get a maybe blurry image (this is not money which is spend on basic research). This number is a fraction of the R&D budget.

  2. DEvHammer says:


    Good point that more R&D spend isn't necessarily better R&D spend. At the same time, when I look at the things coming out of Microsoft Research, I'm pretty comfortable that the R&D dollars are going to some pretty amazing projects.

    Thanks for your comment!

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