Over the last few decades, American companies have not been investing in innovation as much as they used to.
Praveen Kumar, chairman of the department of finance at the University of Houston's Bauer College of Business, says that's not good for the economy and not good for companies' bottom line.
Kumar co-authored a study with Dongmei Li of the University of South Carolina, published in the October issue of the Journal of Finance, that showed companies that invest in building their innovative capacity are rewarded over the long run by higher stock market returns and profits.
He spoke with News 88.7's Florian Martin for this week's Bauer Business Focus.
You can listen to the interview by clicking on the play button above.
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