Innovation, ownership and profitability
This paper considers the relationship between innovation, ownership and profitability for a panel of manufacturing plants in Ireland and Northern Ireland. Previous literature suggests that innovators are persistently more profitable than non-innovators, but little is known about how this link is moderated by external versus domestic ownership. We consider the link between innovation and profits separately for indigenous innovators and non-innovators and externally-owned plants. We also consider the determinants of innovation over the distribution of plant-level profitability, and find that the determinants of profitability - including innovation and external ownership - vary over the distribution from low to high profitability plants. We find support for the view that innovators and non-innovators have different profitability determinants, and that the profitability of externally-owned plants depends on very different factors to those of indigenously-owned enterprises.
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|Authors:||Love, James H. ; Roper, Stephen ; Du, Jun|
International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 27.2009, 3, p. 424-434
|Keywords:||Innovation Ownership Profitability Quantile regression Ireland Northern Ireland|