I can’t stop thinking about google Wave, and what a compelling innovation case study it is.

I think Wave is a game-changer. Wave fundamentally redefines online communication (email and instant messaging) and document collaboration.

And, it was created by five people working together in a conference room.

By contrast, Microsoft Labs, the innovation lab for Microsoft has had more than 500 employees (there were recent cut backs).  The only memorable product they created was Photosynth, which is cool, but is not a competitive game-changer.

And, Microsoft Bing will be launched with a $100 million advertising campaign.  It looks like a good search engine, but it plays today’s game, and doesn’t invent the future.

I heard someone say that advertising is the price companies pay for unremarkable products.  Have you ever seen Google advertise any product on primetime television?

I guess the Apple ads are an exception, because Apple products are remarkable.  However, they need to compete with Microsoft and its huge advertising budget, so maybe the combination of advertising and a great product can provide a one-two punch, but a huge advertising budget can not in itself generate a sustainable competitive advantage.

Previous related posts:

plea to Microsoft.

The History of Microsoft.

My idea for an apple ad.