Innovation, ownership and profitability

James H. Love, Stephen Roper and Jun Du ()

International Journal of Industrial Organization, 2009, vol. 27, issue 3, 424-434

Abstract: 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.

Keywords: Innovation; Ownership; Profitability; Quantile; regression; Ireland; Northern; Ireland (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (44)

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Working Paper: Innovation, Ownership and Profitability (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:27:y:2009:i:3:p:424-434

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