Comment by cmarschner

Bell Labs was special in that (a) they were building the largest system known to mankind at the time (an effort only rivaled by Manhattan snd Apollo projects) where they (b) couldn't use standard components but had to invent every piece by themselves, from the cables to amplifiers to satellites and lasers. Furthermore they were (c) very special in that they helped the government on certain projects like Manhattan, got a decades-long minopoly in return, and had to make their patent portfolio publicly available. In other words they were a semi-public organization with a very well-defined goal, that of building and optimizing the telephony system. Only when it became clear that a monopoly was no longer needed due to advances in technology did Bell lose its privileges, and with it Bell Labs started to wither. It does seem to be a pattern that companies that have created monopolies tend to use their excess money to start showing behaviors of a public service. Namely the research departments of Xerox, IBM, Microsoft, Google and now facebook all come from current or former (quasi-)monopolies.