I don't think it's fair to say: "They only bought it so it doesn't count." You could just as easily say: "They only hired Paul Buchheit, he was the one who came up with GMail, not Google." Real inventions aren't spontaneous point events, they take many years of development, and can die anywhere along the way if you don't continuously create the necessary environment to foster them.
- Chrome - competitive play - iterative improvements over competitors
- Android - competitive play - purchased, playing catch-up to competitors
- Infrastructure - internal services
Basically, is he is more Xerox Copier division than Xerox Parc?
OTOH, when Larry took over, things became much more top-down, with Larry trying to be Steve Jobs and tell the company what they should be building next -- most notably when it came to Google+.
I left before Sundar took over so I don't know how he runs things, but it seems like Google these days is just sort of chugging along, building solid products but not doing anything revolutionary.
The Larry approach sounds more vision-led and its interesting how it looks when it fails. Its difficult to see beyond the survivorship bias and only see it as egotistical and ignorant failure.
The real mistake with Wave was that a group of incredibly smart engineers were basically allowed to go into a bubble and build whatever they wanted for an extended period of time. Successful innovation needs to be anchored by a real problem to solve. E.g. the best programming frameworks always come from someone who is building a real app on top, not from someone who set out to build a programming framework. The feedback loop is necessary to keep developers focused on the actual needs of users, rather than on whatever problem they find most interesting to solve.
I think Eric is referencing the poor usage numbers as a proxy for the fact that the Wave team was not building something that users really wanted.
(FWIW my own startup, Sandstorm.io, had a pretty poor record on this point as well.)
Schmidt was CEO from 2001 to 2011. During that time period, Google basically invented all the infrastructure we take for granted in distributed systems today, popularized the concepts of JavaScript-heavy web applications and Software as a Service, created from scratch a new browser (Chrome) and a new operating system (Android) which promptly dominated the market, and became one of the top five largest companies in the world.
I think he deserves some credit, yeah.