Comment by retrac

It would require Ma Bell. As the article correctly deduces (IMO), it was related to their quasi-monopoly. It was a partial and insecure monopoly; they did need to innovate or they would eventually be eaten. Telecoms was their business, in the very broadest sense. New ways of drawing wire more efficiently would benefit their bottom line. New forms of amplifier technology would almost certainly benefit them ten or twenty years down the line. Same with a new kind of treatment to make telephone poles last longer. So basic metallurgy, forestry, and cutting-edge semiconductor physics were all within the remit. In hindsight it's almost like a public/national research laboratory, that happened to be privately held.