Programmed for growth.

• Position: TRIANGLE REGION

Business-software giant SAS has an impressive record of growing revenue every year since it was founded 39 years ago. Last year was no exception: The Cary-based company registered a 2.3% increase to $3.09 billion--a number that's closer to 5% when currency fluctuations are taken into account. What's the secret sauce behind SAS' success, particularly in an industry known for fast-paced innovations? A healthy research-and-development budget clearly doesn't hurt. Last year SAS, which employs more than 5,300 in North Carolina, poured about $692 million, or 23% of revenue, into R&D. That was close to its average over the last five years. Looking at the results, the investment seems to have paid off. Revenue rose 27.2% over five years, while the R&D budget grew 18.7%. Compared with large tech companies such as Microsoft and Google, SAS' outlay is relatively small. Microsoft spent $10.4 billion, or 13% of revenue, on R&D last year. Google spent $8 billion.

Software companies are rising in the research-and-development ranks, says Barry Jaruzelski, a senior partner at New York-based consulting firm Strategy&, an arm of Price waterhouseCoopers. He leads the company's annual Innovation 1000 list, which ranks companies' R&D expenditures and effectiveness...