Companies based in India and China have also increased R&D investments across regions by 27 per cent on average, although from a small R&D spending base, the study by global management consulting firm Booz & Company on innovation by 1,000 public companies across the world said.
"After growing almost 10 per cent for the second consecutive year, total R&D investment among the world's top innovation spenders continues to grow robustly," the '2012 Global Innovation 1,000' study said.
The study examined 1,000 public companies that spent the most on research and development in 2011 and found that innovation spending reached an all-time high of USD 603 billion during the year, up from USD 550 billion in 2010, an an increase of 9.6 per cent.
This rebound comes after spending dropped 3.5 per cent between 2008 and 2009 during the height of the recession.
Booz & Company also surveyed nearly 700 innovation leaders from companies worldwide to determine companies, which are seen as the most innovative companies in the world.
Apple, Google, and 3M topped the list for the third consecutive year. The most innovative companies are seldom the biggest spenders, the study said.
When compared to the 10 companies that spent the most on R&D, the top-10 innovative companies outperformed across key financial metrics, including revenue growth, market cap growth, and profit as a percentage of revenue.
"Consistent with our study findings from previous years, there is no long-term correlation between the amount spent on innovation and an organisation's overall financial success," Barry Jaruzelski, senior partner at Booz & Company and global leader of the Engineered Products & Services practice, said.
He also noted that "what really matters is not the amount spent, but how those R&D funds are invested in talent, process, and tools".
"R&D spending does not ensure increased financial gains, nor does it guarantee innovation success," John Loehr, Partner at Booz & Company and global leader of the firm's Innovation practice, added.
"Case in point: Apple, Google, and 3M ranked 53rd, 26th, and 86th, respectively, in R&D spending among the Global Innovation 1,000 companies," he added.
According to other key findings from this year's Global Innovation 1000 study, the three industries with the greatest R&D investment were computing and electronics, health, and automotive (28 per cent, 21 per cent, and 16 per cent of the total Global Innovation 1,000 spend, respectively).
Two-third of the USD 53 billion increase in R&D spending between 2010 and 2011 came from the computing and electronics, automotive, and industrials sectors and 75 per cent of companies increased their R&D spending from the previous year in 2011, up from 68 per cent in 2010.
