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Effects of R & D Metrics on Firms Profitability of Indian Textile-Cum-Chemical-Based Companies : A Review

P. Rajendran and R. Saradhamani

This paper examines the impact of Research and Development (R & D) and on the profitability of Chemical-based Companies. The study experiments critical variables, which are influencing R & D management and performance and their effect on the profitability of Chemical-based firms. The variables taken in this study are as Patent Quality, Patent/R & D Rate, Citation/R & D Rate, R & D Intensity and Technology Portfolio. Correlation and regression analysis have been applied to find the relationships of the above variables on profitability. Correlation analysis shows that there is negative relation between profitability and R & D efficiency. Two models have been applied in Regression analysis, the fixed effects model and ordinary least squares model. The regression analysis shows that the R & D Intensity and technology portfolio are found to be insignificant.