Economic return on investments in research and development (R&D) in pine and eucalyptus plantations in Brazil

Abstract

Currently, public and private resources are directed towards the development of Research and Development (R&D) projects in the Brazilian forestry area. But, many times, such investments are used only as corporate advertising, without the knowledge of their real return, underestimating the importance of R&D in the development of organizations in this sector. Hence the importance of studies that seek to evaluate investment returns and how profitable they are for society and for technological innovation. The objective of this study was to evaluate the possible economic return of R&D in the Brazilian Forest Sector, in particular, its effects on increasing the productivity of pine and eucalyptus stands. Through the publications of the Statistical Yearbook of the Brazilian Association of Planted Forest Producers (ABRAF) it was possible to understand the relationship between investments in R&D, planted area and annual current wood productivity, using an indicator that related Investments and Revenue in the R&D of organizations Brazilian forestry companies of this Association. It can be inferred that for every R $ 1.00 invested in R&D projects, an average return of R $ 16.02 is obtained in such organizations. It was also concluded that the marginal gains in annual wood productivity correlated positively and significantly with investments in R&D (r = 0.43). Thus, investments in R&D made by silvicultural organizations translate into an economic return for them, as well as that their absence can stagnate the increase in wood productivity.