LONDON (Dow Jones)--More than eight out of ten U.K. mid-capitalization companies expect an increase in profit over the next two years, driven largely by new products, services and technology, a report by business services firm Ernst & Young L.L.P. said Monday. U.K. mid caps plan to spend an estimated GBP109 billion on new products and services between now and 2012 to boost earnings as the world emerges from recession, according to a poll of 500 companies by pollsters YouGov PLC (YOU.LN) on behalf of Ernst & Young. Companies have earmarked research and development as a key area of spending and intend to bring new products to market, the report said. The report added companies also intend to invest overseas but said they need to do more to tap fast-growing markets like Asia. "If the mantra during the downturn was innovate or die, the key theme for the recovery could be export or die," said Bob Forsyth, head of strategic growth markets, U.K. and Ireland, at Ernst & Young. The report added mid cap executives often feel their companies are overlooked by government, which they believe tends instead to focus on large corporations or small businesses. About three in ten say politicians don't understand mid-size companies. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com (END) Dow Jones Newswires July 05, 2010 04:08 ET (08:08 GMT)