10. Danaher

2013 med tech R&D budget: $551 million
Change from 2012 budget ($494 million): 11.5%
Percent of segment sales ($8.98 billion): 6.1%

Surprise entrant Danaher ($DHR) made the cut based on the back of two overlooked businesses: dental devices including orthodontic braces, digital imaging systems and electric handpieces; and laboratory equipment such as mass spectrometers, microplate readers and centrifuges.

The company also has a large diagnostics business that includes molecular tests, assays, hematology and flow cytometry products for cellular analysis, and systems for laboratory automation of diagnostic tests. This segment was bulked up in 2013 with the acquisition of Quest Diagnostic's ($DGX) diagnostic equipment business, HemoCue. Danaher was also interested in buying Johnson & Johnson's ($JNJ) Ortho Clinical Diagnostics business, but it ended up in the hands of the Carlyle Group.

Life Sciences and Diagnostics division R&D spending shot up $58 million in 2013 to $476 million, according to the annual report. That's almost 7% of annual sales of $6.9 billion. Both units of the division have been built up largely through acquisitions beginning in 2004.

Dental division R&D spending was $75 million, representing 3.6% of sales and down from $76 million in 2012. The annual report says the division serves 99% of dental practices in the U.S.

Med tech R&D spending accounted for 44% of the conglomerate's R&D spending of $1.25 billion. -- Varun Saxena (email | Twitter)

Special Report: Med Tech's 2012 R&D big spenders - Danaher

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10. Danaher
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