Food and consumer goods companies are the most efficient innovators, according to a recent survey of 850 companies by Arthur D Little, while aerospace and utilities are the least efficient. Innovation efficiency is defined as the amount of revenue attributed to new products, proportional to R&D spending.
Source: Financial Times, April 21st 2005
Perhaps not surprisingly, innovation is most efficient in the industries where competition is keenest. This appears to support our previous thoughts on Technology and Competition.