R&D expenditure and firm-level carbon emissions across firm life-cycle stages: Evidence from BRICS countries

In this study, we examine the association between firm-level R&D expenditure, used as a general innovation input, and firm-level carbon emissions across life-cycle stages of listed non-financial firms in BRICS economies over 2000-2023. Using S&P Trucost firm-level carbon data matched with S&P Capital IQ Pro financial variables, the results indicate that R&D expenditure is positively associated with carbon emissions on average. This association, however, varies substantially across life-cycle stages. The marginal emissions effect of R&D is weaker for Growth and Mature firms, suggesting that firms with more developed operating routines, financing capacity, and regulatory exposure may be better positioned to channel innovation toward process upgrading and efficiency gains. The findings therefore qualify the common assumption that innovation is automatically carbon-reducing: in BRICS economies, the environmental implication of R&D depends on whether innovation is directed toward cleaner production or toward carbon-intensive expansion. The study contributes to environmental management and environmental finance research by showing that innovation policy should be linked to firm life-cycle position, sectoral emissions exposure, and verifiable carbon-performance outcomes.