Cisco has the highest market share in wireless and it is Cisco's innovation in wireless that's keeping it ahead of Ruckus, Aruba and Motorola. Don't understand the conclusion that Cisco can't do "out of the box" R&D, at least in wireless.
I think what he was trying to say is that Cisco's R&D efforts are largely focused on refining the wireless stuff that it already does, if it wants something radically new AND that something is being done already it's easier to just buy the company and their research instead of spinning up a new R&D effort to reinvent the wheel.