Brands, patents can protect firms from bankruptcy

If a firm faces troubled times during a stable market, strong advertising can carry it through. But when the market is turbulent, a firm's Research and Development is more likely to help save it from bankruptcy. A new study published in the Articles in Advance section of Marketing Science, a journal of the Institute for Operations Research and the Management Sciences (INFORMS), shows that "intangible assets" built with advertising (such as brands) and R&D (such as patents) can help protect firms from bankruptcy, but the effectiveness of each depends on the market climate.

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