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Risk and Product Innovation: A Study of Brazilian Manufacturing Companies

The aim of the article is to study the relation between product innovation and its associated risk, particularly in the Brazilian manufacturing industry in the period of 1995-2005. A statistical model is developed based on the study realized by Bromiley (1991), seeking to identify whether factors such as performance of the firm, performance of the industry in which the firm operates, performance expectations and aspirations of the firm, besides its financial slack, are determinant factors of the risk taken hereby, specifically related to product innovation. In the study of data for Brazilian manufacturing firms, the estimated results do not support the model proposed.