R&D labs fail at innovation because they're not designed to innovate. They're designed to invent. And they do a pretty good job at it as well.<p>Without R&D labs we wouldn't have digital cameras, laser printers, the GUI, the mouse, cell phones, pharmaceutical drugs, etc.<p>If you want a good book on the subject, grab "Open Innovation" by Chesborough. It does a good job explaining why Xerox PARC wasn't able to monetize many of its inventions even though its managers were highly competent leaders who were following the best practices of the time.