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Impact of research and development expenses on the profitability of assets: the case of textile and clothing industry in Portugal
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Advisor(s)
Abstract(s)
The study aims to examine the financial efficiency of the textile and clothing industries
in Portugal using official statistical data. The main objective is to assess the relation-
ship between spending on research and development and return on assets. The study
analyzes the performance of various subsectors of the textile and clothing industries,
presenting the relationship between investments in research and development and
the operating return on assets over various economic periods. The study adopted data
envelopment analysis, classifying decision-making units based on average efficiency
levels. The results highlight sectors of manufacture of textiles for technical and indus-
trial use, manufacture of other textiles, production of outerwear, and manufacture of
workwear as the most efficient. In contrast, sectors of manufacture of clothing and
accessories, manufacture of knitwear, and leather clothing show lower levels of effi-
ciency. From 2003 to 2022, the textile industry exhibited the highest levels of financial
efficiency, with an above-average ratio between spending on research and development
and return on assets. However, sectors of knitwear manufacturing and textile finishing
have maintained a more or less constant level of financial efficiency. The analysis high-
lights the need for targeted interventions to increase the financial efficiency of different
subsectors within the textile and clothing industries. It is evident that there are varying
levels of financial efficiency across these sectors, and the need for benchmarking peri-
ods can help identify areas for improvement and set achievable goals.
Description
Keywords
Clothing Efficiency Innovation Industry Manufacturing Textile
Citation
Moraes e Soares, R., Nunes, A. M., Heliodoro, P. & Martins, V. (2024). Impact of research and development expenses on the profitability of assets: The case of textile and clothing industry in Portugal. Problems and Perspectives in Management, 22(1), 702-715.