R&D investment and the arrangement of innovation capabilities in Brazilian manufacturing firms

Abstract

This paper aims at identifying the different arrangements of innovation capabilities for firms with different levels of R&D investment. The four innovation capabilities model (development, operations, management and transaction) by Zawislak et al., (2012) was crossed with the three level – low, medium and high – R&D intensity classification by Legler and Frietsch (2007). A multiple regression was applied on data from a survey of 1,331 Brazilian manufacturing firms, results clearly show different arrangements of innovation capabilities for each level of R&D investment. Operations capability does not generate innovation performance in any level. Development capability becomes increasingly relevant to performance, as R&D investment increases, on the other hand, management and transaction capabilities turn to be less prominent.