Knowing that my father had worked for a bit as a consultant to Kodak in the early 60's I brought this story up a few weeks ago. I had expected to hear him bemoan the demise of a grand and visionary company. Instead, he had utter disdain for the arrogance of the management from that period. They were totally locked into viewing themselves as a paper and chemical company and if something didn't advance them on those two fronts they couldn't care less about it.
One of the things my father had helped them explore was some tie-ins with another Rochester based fledgling (at the time) giant, Xerox. They had been around for a while as the Haloid Photographic Company, but their first plain paper photocopier in 1959 is what made them what we know today as Xerox. Anything involving plain paper was anathema to them, so they didn't see any reason to work together ... but the door had been open for a moment in time. Interesting in light of the future relationship between the earliest days of the Mac and Xerox PARC.
Kodak - good products, good marketing ... just not very forward thinking.