Though completed in Brazil many years ago, this study may still be of some relevance. It explains my interest in John Kay’s column today.
More than a quarter of the [4,342 industrial] establishments reported the systematic development of new products, and more than two-thirds reported at least some activity in this area, yet fewer than ten percent of the firms registered R&D expenses on their balance sheets. Obviously there is considerable technological effort that never enters formal accounts, probably because most of the smaller firms have neither a research department, nor full-time employees dedicated to research and development.
Helson Braga and Larry Willmore, “Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms”, Journal of Industrial Economics, June 1991, p. 423.
Tags: growth
