Earlier quoted context omitted.
If you consider the number of papers published over the lifetime of IBM, and the fact that IBM Research does work in all levels of computing (materials science -> software), Microsoft's research output looks minuscule in comparison. But if you're considering only CS research, then you might be right. Here is a nice snapshot of the major contributions that came out of IBM Research over the past 60 years: http://www.re…
And all of these, in terms of quality of research output, pale by about an order of magnitude in comparison to Bell Labs for much of its existence (particularly in the era ~1940 to mid 1980s). They were the R&D benchmark for most improvements to IBM Research from the 1960s onward. Additionally IBM sought out its alumni and populated their ranks with notable management and research minds from the Bell Labs stable.
The modern world is to great extent a byproduct of the experiment that was Bell Labs. Some laugh, and say that it was experiment that has gone awry.