Despite the increase in spending, UK companies still lag behind international benchmarks, with the world's top 700 companies investing 21.7% of sales values in research and development in the past 12 months.
The report revealed that the share value of the 10 most R&D-intensive UK companies has been higher than the FTSE 100 every year since 1997, with a selection of shares in those companies rising by 30%, compared to a drop of 15% for FTSE 100 companies during the same period.
Science and innovation minister Lord Sainsbury said, "The scoreboard confirms that R&D is key to economic success. R&D helps create the innovative products and services that UK businesses need to compete on the global stage."
This was first published in October 2003