Is tweaking some complicated algorithm, really innovation anyway? I think Yahoo are better off leaving this problem to Microsoft. People don't tend to call Mic

Is tweaking some complicated algorithm, really innovation anyway? I think Yahoo are better off leaving this problem to Microsoft. People don't tend to call Microsoft innovative and search is an established place that they want to be in - this is normal behavior for them. Microsoft are in a good position for doing search by acquiring powerset and other companies (as Jason mentions). Microsoft this more so they can compete with Google directly and Yahoo have better sense. Yahoo is doing stuff that neither Google or Microsoft do well, like Flickr, Del.icio.us, News and other content. Innovation from the customers point of view would come from improving the interface to search, which Yahoo can do without doing the algorithm themselves. If look at what they offer with the BOSS and search monkey APIs http://developer.yahoo.com/search/ http://developer.yahoo.com/search/ Yahoo is keen on this direction. At the Yahoo Hackday London in May they were pushing these APIs with talks and handing out documentation etc.