Firms that invest more in research and development (R&D) tend to have higher stock returns in international markets. This shows that intangible investments like R&D play a big role in how stocks are priced globally. The impact of R&D on stock returns is stronger in countries where growth options are more valued. R&D intensity also leads to better future performance, higher return volatility, and lower chances of default. Overall, the link between R&D spending and stock returns is more likely due to risk factors rather than market mispricing.