Characterizing research as critical to the company's survival, Microsoft officials Thursday offered glimpses into multiple research efforts in areas such as privacy and search.

In an event at Microsoft Research's Silicon Valley facilities in Mountain View, Calif., Microsoft officials said the company has 2,500 people doing research and development in the valley. Globally, the company has more than 800 PhD holders involved in research.

"Ultimately, the goal of Microsoft Research is to make sure there's still Microsoft in 10 years. We've been able to do that for 17 years," since the beginning of Microsoft's research enterprise, said Rick Rashid, senior vice president of Microsoft Research.

Microsoft was a small company, with only about $1 billion in sales, when it decided to build a research organization, Rashid said. The Silicon Valley facility focuses on distributed computing.

Research, Rashid said, gives Microsoft a chance to respond to a changing competitive environment. Basic research also offers society and humanity the opportunity to survive, he said.

Tongue in check, he stressed the advantages of having a research group should something really bad happen, such as a war, famine, or Google, which is located just a few minutes' drive from Microsoft's Mountain View offices.

Microsoft has tried to acquire Google competitor Yahoo. In an interview, Rashid said Microsoft has not been competing with Google for researchers lately because Google does not do any basic research.

Indeed, Microsoft Research efforts in search -- Google's forte -- were evident at Thursday's event. With its query-dependent ranking project, for example, Microsoft has been evaluating algorithms to get improved relevance of Web search results. The Keyboard Generation and Query Classification project at Microsoft focuses on developing technology to show keywords to advertisers.

In the privacy arena, the company's Privacy Integrated Queries project is intended to enable queries on data while protecting certain information, such as a person's health history. It leverages Microsoft's Language Integrated Query (LINQ) and Differential Privacy technologies.