Innovation, Ownership and Profitability

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

No 07-10, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

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 innovators and non-innovators, and 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 that of indigenously-owned enterprises.

Keywords: Innovation; Ownership; Profitability; Ireland; Northern Ireland (search for similar items in EconPapers)
JEL-codes: F14 L60 O32 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ino, nep-ipr, nep-pr~ and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Innovation, ownership and profitability (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:aal:abbswp:07-10

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