ABSTRACT
The aim of this paper is analyse empirically R&D, market structure and advertising in Brazilian manufacturing. According to recent literature advertising is part of firms R&D appropriability efforts in a specific market structure. We use Brazilian innovation and Brazilian industrial surveys 2003 and 2005 editions to build a panel data with information at firm level to 9000 companies. Among the main results, the average firm market share (SIC 3 digit) is 0.9%, with standard deviation 3.9% and 75th percentile 1.4% and the average firm advertisement/net revenue ratio is 0.3%, standard deviation 1.2% and 75th percentile also 0.3%. From regression results we conclude that advertising is an efficient appropriability mechanism within R&D initiatives in Brazilian industrial firms and market share affects a firm's R&D decision-making, i.e., market concentration and R&D expenditure are positively correlated in low appropriability conditions sectors.
Keywords
R&D, market structure, advertising, Brazilian manufacturing, microeconometrics