Just a quick update, doing a bit more research on R&D.
According to the financials Canon has historically spent between 8 & 9 percent of income on R&D. The percentage has remained fairly constant however it dropped a small fraction this year.
The strength of the YEN had some effect on this as well. If you compare the numbers in YEN it does not look as bad as if you compare in Dollars.

Last, in Imaging Canon still outspends Nikon in R&D, from my quick look it appears to be about 10%. I take this as a positive.