I think it requires a third thing: long-term thinking.
Other commenters noted that Google and Microsoft had big piles of money and a decent moat. They have not created anything like Bell Labs. Google tried, with DeepMind.
The problem is that companies used to think about 5,10,20 years out. Modern companies are gauged and gauge themselves by metrics that are quarterly or annual. They, to borrow from The Fast and the Furious, are living their life one business quarter at a time.
I don't think you can build something like Bell Labs, PARC, or the Lockheed-Martin Skunkworks with short-term thinking.
Other commenters noted that Google and Microsoft had big piles of money and a decent moat. They have not created anything like Bell Labs. Google tried, with DeepMind.
The problem is that companies used to think about 5,10,20 years out. Modern companies are gauged and gauge themselves by metrics that are quarterly or annual. They, to borrow from The Fast and the Furious, are living their life one business quarter at a time.
I don't think you can build something like Bell Labs, PARC, or the Lockheed-Martin Skunkworks with short-term thinking.