Financial importance of the geographic proximity of sugar-energy mills to technology-innovation centers in Brazil

Abstract

Brazilian sugar-energy industry has its competitiveness based on innovation that allows the food, biofuel, and bioenergy production. However, financial performance is asymmetric among mills whose innovation strategies are heterogeneous. This study aims to verify whether the sugar-energy mills strategically located close to Technology and Innovation Centers, present a superior financial performance compared to those further away. We used annual financial data on 56 mills from 1998 to 2018, available from public and private databases. In order to compare the averages of the financial results, a t-test was used. The mills closer to Centers showed a statistically higher financial performance than those further away.