TECHNOLOGICAL INNOVATION RELATIONS AND CAPITAL STRUCTURE : A BRAZILIAN STUDY OPEN CAPITAL

Abstract

The funding process for innovative projects is a relevant and peculiar subject due to its high levels of intangibility tendence, hard ownership and high information asymmetry that confer high risks and costs to organizations. In this way, the present study shows the existence of relationships between variables of capital structure and technological innovation in Brazilian environment, from the assumptions of the linear innovation model. The research analysis universe involved publicly traded companies of Information Technology, Quemistry, Telecommunications and Industrials goods. Different statistical procedures were applied, such as the multiple linear regression analysis and Kruskal-Wallis non-parametric test. For the input variable, were found significant correlations between R&D spendings and payments capacity, capital cost and investment in subsidiaries. Regarding the output variables, it was not possible to verify the relationship between innovation and capital structure. The evaluation of the results shows that there seems to be a direct link between capital structure and innovation input connected to financial efforts, but that the innovation output, a priori, or does not have the same strength in the indicators of capital structure relation, or presents more tenuous relationship. The different results shows that the linear model works as a simplification of the real world, that enables partial quantitative assessments, but, in the other hand, that interactive models seems to be more consistent when don’t  linearly link effort in research with  innovation processes results.