The trajectory of the ability to innovate and the financial performance of the Brazilian industry

Author(s)

Lopes Santos, David Ferreira ^[1] ; Cruz Basso, Leonardo Fernando ^[2] ; Kimura, Herbert ^[3]

Affiliation

^[1] Sao Paulo State Univ Unesp, Sch Agr & Veterinarian Sci, BR-14884990 Jaboticabal, SP - Brazil

^[2] Univ Prebiteriana Mackenzie, Sch Appl Social Sci, BR-01302907 Sao Paulo, SP - Brazil

^[3] Univ Brasilia, Sch Business Accounting & Econ, BR-70910900 Brasilia, DF - Brazil

• Document type: Journal article
• Source: TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE; v. 127, p. 258-270, FEB 2018.
• Web of Science Citations: 3

Abstract

This research analyzes the cumulative trajectory of Brazilian industry's ability to innovate and the impact of this resource on firms' financial performance. From a broad base of data taken at the firm level, a cross-sectional analysis and a longitudinal analysis were combined, through structural equation modelling, in the construction of the trajectory of resource innovation with the combined use of the following techniques: a multilevel model, latent trajectory analysis, and an autoregressive model. The empirical model shows that the ability to innovate consists of factors that are associated With internal, external, and human resources. The influence on financial performance is positive and significant when the analysis involves the long term. The autoregressive effect of the ability to innovate in time is not significant, suggesting that the innovation process is cumulative, interactive, and nonlinear. These results are relevant to emerging countries that require continued public policies and a greater intensity of business investment in the innovation process, aiming at the longevity of companies. (AU)

• FAPESP's process: 13/12483-6 - Ability to innovate, financial performance and value creation: a comparative analysis between industry national and sugarcane
• Grantee: David Ferreira Lopes Santos
• Support type: Regular Research Grants