"Microsoft, he added, is a major sponsor of university research. More than 15 percent of the company’s basic research budget goes to universities. Microsoft does not disclose its total basic research budget, but it is estimated at $300 million a year.
Basic research, Mr. Rashid said, is in good part an insurance policy, giving the company a rapid-response capability. “You have it so that when something happens that you don’t expect, you can adapt quickly,” he said.
Open innovation models are fine, Mr. Rashid said, but they have their limits. “Investment in basic research is an investment in survival,” he said. “I don’t know how you outsource that.”"