The cuts last year were concentrated in auto, computing, electronics and industrial companies, some of the biggest spenders.

Research and development spending at major companies declined last year for the first time in more than a decade, according to a survey by management consulting firm Booz & Co.

"The world-wide recession finally caught up with the world's top innovation spenders in 2009," the Booz report says, adding that "the most forward-looking companies will likely move quickly to restore the R&D cuts they made in 2009."

Booz also found that heavy spending on R&D doesn't necessarily lead to recognition as a technology leader.

Roche Holding AG had the biggest spending total last year, at $9.12 billion. It was followed by Microsoft Corp. with $9.01 billion and Nokia Corp. at $8.24 billion.

Total 2009 R&D spending by the companies surveyed declined 3.5% from a year earlier to $503 billion.

In a survey of more than 450 'innovation executives' from 400 companies representing $150 billion in annual R&D spending, Booz asked them to name the companies they considered 'most innovative.'

Toyota Motor Corp.'s R&D spending totaled $7.82 billion, and Pfizer Inc. had $7.74 billion.

Apple last year spent about 3.1% of its sales on R&D, or about half the typical level for computer and electronic companies, said Barry Jaruzelski, a partner at Booz, and yet Apple's R&D appears to be far more effective than that of many rivals.

Apple succeeds because it has a deep understanding of consumers, is focused in its projects 'as opposed to trying to spread their bets,' and attracts superior talent, he said.

"It's much more about how you do it than how much you spend," Mr. Jaruzelski said.

The three most frequently chosen by respondents were Apple Inc., Google Inc. and 3M Co., none of which was among the 10 biggest spenders on R&D in 2009.