China and India will be among the top global destinations of overseas spending by companies on research and development (R and D) in the next three years, according to survey results issued.

The London-based Economist Intelligence Unit (EIU) said Tuesday that a global survey of 104 senior executives showed that 52 percent of companies plan to increase R and D investment while 38 percent will maintain current spending levels.

Thirty-nine percent of respondents said China will be the main destination of R and D investments over the next three years, followed by the United States at 29 percent, India at 28 percent, and Britain at 24 percent.

The presence of research talent, the size of the local markets and the opportunity to reduce research costs are important factors in deciding where investments will go, the survey showed.

"Companies are keen to develop products for the world's fastest-growing markets, and to do so they increasingly need to conduct product research in developing countries like China and India," said an EIU statement received in Singapore.

But companies still feel safest placing their most innovative research projects in countries like the United States, Britain and Germany.

This is because such countries boast "a sophisticated research infrastructure, strong links to some of the world's leading universities, and robust legal protection for intellectual property," the EIU said.

By contrast, most foreign investment in research in emerging markets is currently focused on products rather than basic or applied research.

However, as skill levels improve, some developing countries are also staking a claim to more sophisticated research activities, such as ground-breaking work on mobile technology in China, the EIU said.

"Intellectual property risks remain a key corporate concern. The downside to setting up R and D operations in many developing markets is the difficulty in protecting proprietary innovations," it said.

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