3. Medtronic

FY 2013 med tech R&D budget: $1.56 billion
Change from FY 2012 budget ($1.49 billion): 4.7%
Percent of segment net sales ($16.6 billion): 9.4%

Medtronic ($MDT) has more than 200 projects across the organization that are in research and development, it said at a recent analyst day. In fact, CFO and SVP Gary Lee Ellis expects that from this product pipeline Medtronic stands to generate $25 billion to $30 billion of revenue over the next 5 years. He said that the company has started to rate each of these 200 products by which are more iterative or more innovative. Medtronic hopes to use this analysis of iterative versus new technology to make sure it has a balanced portfolio overall.

Medtronic's sales are split roughly evenly between its vascular group (including cardiac rhythm disease management, coronary, structural heart and endovascular devices) and its restorative therapies group (including spine, neuromodulation, diabetes and surgical technologies). In fiscal 2013, the company says it focused on improving R&D productivity by reallocating more resources toward products for emerging markets and evidence generation for growth products.

Electrical stimulation, targeted drug delivery, implantable structural devices, surgical navigation and imaging, powered and advanced energy instruments as well as patient and device management are all among the core innovative technologies that Medtronic is pursuing.

And the R&D budget figures are expected to grow due to the company's acquisition of Covidien, which spent $508 million on R&D in FY 2013. Medtronic CEO Omar Ishrak promises that the joint company will spend $10 billion more than currently planned on technology innovation in the U.S. over the next decade. -- Stacy Lawrence (email | Twitter)

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

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3. Medtronic