Google says 20% time is going strong, and Google Now is proof

There have been recent reports saying that Google's famous 20% time was on the ropes, or maybe even gone for good. The policy at Google had always been that employees weren't just allowed, but were encouraged to use 20% of their time to work on projects of their own choosing. The policy has given rise to products like Gmail and GTalk, and now Google says that it was also responsible for Google Now.