"The crux of it is Microsoft is not good at R&D today."
Where on earth did you hear that?
Both Nokia and Microsoft are known for producing high quality products and investing heavily in R&D. The don't have a technology problem, they've got a branding, positioning and strategic problem.
Great R&D produces innovative and market stimulating products in my book. Microsoft hasn't impressed me, personally, for quite a long time. I realize this is a subjective idea to discuss - but neither Nokia or Microsoft are leaders in the mobile space (trying to create a bit of focus here since Microsoft has many facets). If you're not a leader in a segment you're not developing new and innovative products. Granted I think Apple and Google are coasting a bit right now, this comes back to innovators dilemma - which is what Nokia has grappled with going from a market innovator to irrelevant respectively (to the US market anyway). Just my $0.02, but trying to provide context.
