The Bedford Report has released two reports on medical device firms, one focusing on Medtronic, and one focusing on St. Jude Medical.

Both reports highlight that the companies are ramping up, which is surprising to the authors, given regulatory uncertainties and poor consumer spending.

During Q3, executives from St. Jude Medical admitted that the market for heart-rhythm devices isn't expanding as fast as hoped. However, last month the company announced that would acquire AGA Medical Holdings for around $1.08 billion in cash and stock in an attempt to add products used to treat heart defects and blood-vessel issues.

Believing innovation is critical to success, Medtronic's finance chief, Gary Ellis, recently said that R&D would be one of the last areas the company would choose to cut spending—regardless of economic conditions. In the last year Ellis says Medtronic spent between $1.5 billion and $1.6 billion on R&D.