The Microsoft Network (MSN) Live portal and Microsoft Research (MSR) have launched Live Labs, a joint project to get net researchers to drive product innovation in a way that's like Google Labs, but intended to be much less insular. It has a manifesto written by Gary Flake. Accompanying the launch there are a new set of academic research grants and 10 MSR PhD Fellowships. The overview says:
In addition to our core team of Internet technologists that specialize at the intersection between science and engineering, Live Labs includes a group of renowned researchers at MSR, as well as Windows Live product designers and engineers. Together, we foster Internet-centric research programs, rapidly prototype and launch emerging technologies, incubate entirely new inventions, and improve and accelerate Live product offerings. Our entire Live Labs team collaborates closely with the academic research community through research grants, fellowships, workshops, conference sponsorships, and more.
They're hiring, obviously.
Update: Dion Hinchcliffe has a good report of the Live Labs announcement plus audio files here.