Boring stocks that generate R&D heat—and profits

"Innovate or die" may be a Silicon Valley mantra, but it's one that many companies in more traditional industries have embraced. In fact, if you're going to risk your investing money making bets on the value of innovation, you might do well by looking away from Silicon Valley.

Last year computing and software companies together accounted for one-third of all R&D spending, according to The Global Innovation 1000 Study from Booz & Co. However, simply adding up the R&D dollars and ranking companies based on who spent the most won't identify nearly all the companies adding steadily to shareholder wealth through innovation. 

Boring stocks that generate R&D heat—and profits