R&D, Innovation and Profit in Food Firms in Thailand
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Abstract
This study investigates the impact of R&D expenditure on firm performance using panel data from 42 food firms listed on the Stock Exchange of Thailand (SET). We first analyze the effect of R&D spending on gross profit and find that its second lag has a strong positive impact. Next, we examine innovation outputs including patent applications and new product launches and observe that both have a negative effect on gross profit. Finally, we construct an Innovation Index using factor analysis to capture latent innovation activities. The index shows a significant positive relationship with gross profit, highlighting the multidimensional nature of innovation in the food industry. Based on these findings, we recommend that the government and Thai food firms continue to strengthen support for R&D to enhance long term competitiveness.
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