The food and drink industry now invests more than £1.1bn in R&D, bringing it in line with the automotive sector.

This is the key finding of a new report from the FDF and the University of Cambridge's Institute for Manufacturing. The report also reveals that nearly 40% of UK food and drink manufacturers plan to increase investment in production and R&D over the next three to five years.

The institute suggests innovation has helped the UK food and drink industry weather the recession, with industry production outperforming other manufacturing sectors from May 2008 to May 2009.

The production index for food and drink fell by only 1.9 compared with 13.1 for manufacturing as a whole over the period. Last year saw the fifth consecutive rise in food exports, up 4.4% to £9.65bn, compared with other manufacturing sectors whose overseas sales slumped 11.8% to £226.86bn.

ONS figures between Q1 2009 and Q1 2010 show a 25% drop in UK manufacturing business expenditure while the food and drink industry continues to push ahead with an increase in business investment of 7.2%, IFM said.

The report also highlighted the food and drink sector's continuing commitment to staff, noting that 94% of individuals were in full-time employment and on salaries well above the national average. The industry was also attracting new blood with graduates representing a fifth of all staff.

The report served as a reminder of the financial, strategic and social importance of the sector, said FDF director general Melanie Leech. "We have placed innovative R&D at the heart of our industry and continued to invest in our products, our factories and our people in a hugely challenging economic climate and are now well-placed to capitalise on these strong foundations as the country emerges from recession," she said. "We are a high-value added sector offering world-beating capabilities and a rich range of career choices."