Lead Program Manager on Virtual PC for Mac, Omar Shahine details how innovation occurs within Microsoft's Macintosh group:

Contrary to what people may think, we don’t share features with any other teams. We aren’t obligated to implement anything, and we aren’t tied up much by external dependencies (and this is important). Not having dependencies, like Office has on Windows and vice versa really frees us up. Our only dependencies are internal, and since we control the schedule, it’s much easier to resolve any issues. Having said all this I don’t think it’s fair to say that our applications are so much ahead of our Windows counterparts (well maybe the Project Center is). The thing is, we focus on a very specific set of features (because we are a small team) and we try to get it right the first time. We don’t have the tens of millions of customers to cater to that some of the Windows teams do. Additionally, we appreciate and borrow many features from Windows Office (where we see fit). Good examples of this are the three column view in Outlook 2003 that we added to Entourage. In fact, I'm humbled by all the functionality found in Windows or Office. It's simply amazing what capabilities lie within those two sets of products. Again, all there because to some set of customers they are critical.

Check out Omar's blog.