Return on investing in innovative activities: the brazilian manufacturing industry

Túlio Silva Oliveira, Cândido Vieira Borges Júnior, Mauro Caetano


Objective of the study: This study analyses the relationship between innovation investment and the number of firms that innovate in various sectors of the Brazilian manufacturing industry.

Methodology/approach: The estimated multiple linear regression model with panel data based on triennial investments covering 1998–2017 was considered.

Originality/Relevance: This study indicates that investment in R&D, both internal and external, does not influence the number of companies that have implemented certain types of innovation.

Main results: Investment in training and machinery/equipment acquisition showed a positive and significant relationship with the number of companies implementing some type of innovation in the analyzed sector.

Theoretical/methodological contributions: These findings contribute to better management of resources spent on innovation activities while filling a theoretical gap in the impacts of different innovative activities, considering the Brazilian manufacturing industry.

Social/management contributions: The return on innovation investment is uncertain in the organizational context. Understanding the return on investment in innovation activities contributes to decision-making regarding resource allocation, especially in organizations with financial constraints.


innovation; investment; technological innovation


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