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Relationship between profitability and US firm strategies for research and development intensity and capital investment

Takayuki Suzuki et al.

International Journal of Technology Management2025https://doi.org/10.1504/ijtm.2025.151884article
AJG 2ABDC B
Weight
0.37

Abstract

Research and development (R&D) has been associated with the accomplishment of business results through capital investment. In recent years, the efficiency of R&D investment by US firms has declined; however, there is a lack of empirical evidence. Therefore, this study empirically analyses the relationship between R&D, capital investments, and the US firms' profitability. A regression analysis was conducted using data from US stock market-listed firms between fiscal years (FY) 2010 to 2021. The results indicate a significantly negative R&D ratio coefficient for all years. Additionally, the capital investment ratio coefficient was significantly positive in FY2019 and FY2021. However, for FY2011 it was positive but insignificant. The coefficients were significantly negative for all other years. The results indicate decreased efficiency of R&D investments by US firms, indicating opportunities to enhance their profitability. Moreover, the findings contribute to the existing literature and will assist practitioners make more informed management-related decisions.

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https://doi.org/https://doi.org/10.1504/ijtm.2025.151884

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@article{takayuki2025,
  title        = {{Relationship between profitability and US firm strategies for research and development intensity and capital investment}},
  author       = {Takayuki Suzuki et al.},
  journal      = {International Journal of Technology Management},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1504/ijtm.2025.151884},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.