Apple's the only company left in this industry that designs the whole widget. Hardware, software, developer relations, marketing. It turns out that that... is Apple's greatest strategic advantage... if you believe that there's still room for innovation in this industry.

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But innovation comes from people meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realized something that shoots holes in how we've been thinking about a problem.

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Innovation distinguishes between a leader and a follower.

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Innovation has nothing to do with how many R & D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R & D. It's not about money. It's about the people you have, how you're led, and how much you get it.

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Large companies not paying attention to change will get hurt. The Web will be one more area of significant change and those who don't pay attention will get hurt, while those who see it early enough will get rewarded. The Web is just going to be one more of those major change factors that businesses face every decade.

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Apple and Pixar are the same in that...they both deliver a product that has immense technology underpinnings and yet they both strive to say you don't need to know anything about this technology in order to use it.

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Apple has always been, and I hope it will always be, one of the premier bridges between mere mortals and this very difficult technology.

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The CEO's role in raising a company's corporate IQ is to establish an atmosphere that promotes knowledge sharing and collaboration.

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The close relationships we form between researchers and product groups have already shown we can move the great ideas as they come along, without a schedule, into the products.

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One thing I've always loved about the culture at Microsoft is there is nobody who is tougher on us, in terms of what we need to learn and do better, than the people in the company itself. You can walk down these halls, and they'll tell you, 'We need to do usability better, push this or that frontier.'

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