ABSTRACT
The growing importance of the intangible assets has caused a lot of research about them. The value creation capacity of such assets, mainly Research and Development (R&D) is in such a context. Much research about this has been done in USA in comparison to developing markets where such theme is almost unexplored. This work has the purpose to present a research about a possible economic effect of R&D investments in Brazil. Such investigation has been developed through a literature review about the question in the world and an empirical research in the Brazilian companies listed in Bovespa based on a linear regression in cross-section in the year 2003. We have used a model previously applied in other countries that has a capital R&D index as dependent variable explained by R&D intensity and other variables related to firm characteristics and performance. Although the low levels of R&D investments found, we have detected a signal of positive sensibility of the Brazilian market to such investments. This finding could be an indication that such market considers R&D investments as capable of generating future benefits. Additionally, we emphasize the need of using other models as well as considering other factors to mature the question that has been subject of extensive research in other countries.
KEYWORDS:
R&D; expenditures; investment; market reaction; future benefit