Though his father had turned IBM into a tremendously successful company, the firm that Thomas Jr. inherited was largely a mix ... Watson also continued to invest heavily in research and development, ...

Because of IBM’s big company status, however, it was free to heavily invest in research and development, and by 1956 it had surpassed its competitors in the computer market.

McCraw, Thomas K., and Rowena Olegario. "IBM and the Two Thomas J. Watsons TN." Harvard Business School Teaching Note 797-035, August 1996. (Revised January 1998.) ...