In the past, internal R&D was a valuable strategic asset, even a formidable barrier to entry by competitors in many markets. Large corporations like DuPont, IBM and AT&T competed by doing the most R&D in their respective industries and subsequently reaping most of the profits. Rivals who sought to unseat those powerhouses had to ante up considerable resources to create their own labs, if they were to have any chance of succeeding. Today, however, the leading industrial enterprises of the past have been encountering remarkably strong competition from many upstarts. Surprisingly, these newcomers conduct little or no basic research on their own, but instead get new ideas to market through a different process.