Comment No (Score 1) 66
It was absolutely not the case that "there was always an eye towards how would this get deployed to a market as a product". Look at how much energy went into building Belle, the first chess machine to achieve master-level play. And it wasn't a simple computer program, it had a full-on chess board with pieces. When dignitaries toured the labs the tour guide would have to invent some bullshit reason as to how this chess machine benefited a telephone company.
Or just read the biographies and interviews of the people who worked there. They'd work on things they found interesting and there was no pressure to make commercially viable stuff. Now it sometimes happened that for budget reasons they'd work on particular projects, e.g., the computer science team got the AT&T patent department to pay for a PDP-11 with the promise that the computer science team would develop document preparation software (funnily enough, this same excuse was used elsewhere, e.g. at the University of Nottingham the computer science department got money to help with typesetting exams).
I don't even know what you mean by "long-term tech development is heavily done in an academic setting." When I look at papers from, say, SIGGRAPH these look like exactly the kinds of things you'd get from a handful of grad students and a PI, i.e., work that can be busted out by a few people in a couple years. When I think of "long-term tech development" I think of something like all the work Google did in AI which spanned decades. The projects that were done by Bell Labs in CS mostly took a few weeks and were done by one or two people -- like how much work really went into the first version of "pic." Most of the Unix work at Bell Labs was passed over to the commercial group (AT&T's Unix Support Group, as well as licensees which fed their work back to AT&T) after Version 7 was done.