In a thread on slashdot about recent advances solar cell technology thpr has this insight into a lack of R&D spending by oil companies in particular and large companies in general.
I'd note that most oil companies do have lots of research into alternative (non-oil) energy. It's just hard to see in their financials because oil is so lucrative. The major one that realy gets criticized for its lack of investment in areas like solar is ExxonMobil - and the reason they don't is probably the same reason that Cisco doesn't tend to develop most of its revolutionary technology inside the company. XOM and CSCO both have tons of cash, tons of cash flow and a well-priced stock giving them the ability to simply buy a producer of new equipment if it becomes a valuable market. Why bother to spend tons of money on basic research when you can let the newcomers fight it out in the market and just buy the leader when the time is appropriate? As strange as it is, that's R&D economics at many large industry-leading corporations. It's "efficient outsourced innovation" [businessweek.com].
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