Innovation and financial performance of Brazilian companies: a statistical study for the period of 2009 to 2013

• Main Authors: Leonel Cezar Rodrigues, Renata Canela, Alessandra Cassol, Vanessa Nunes de S. Alencar Vasconcelos, Jussara Goulart da Silva
• Format: Article
• Language: Portuguese
• Published: Universidade Nove de Julho 2015-01-01
• Series: Exacta
• Online Access: http://www.redalyc.org/articulo.oa?id=81044154011

We look at innovation returns in two groups of companies located in Brazil. One group includes innovative companies, referred to as 3i companies (Innoscience Innovation Index) and listed in the São Paulo Stock Exchange – BOVESPA. The other group is referred to as Not-3i companies and are also listed in Sao Paulo’s BOVESPA. We first made a descriptive analysis and then a regression on performance indicators – net margin, asset profitability, and return on equity and on invested capital – with data from companies classified as 3i and Not-3i in the Economatica Report, limited to the period between 2009 to 2013. Results indicate that significant correlation appears between innovation and returns on invested capital, on equity, and on assets for 3i companies, as hypothetically projected. Net margin, however, is lower for 3i than for Not-3i companies, showing that lower gains in 3i companies may be due to higher costs of internal innovation.