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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Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in International journal of industrial organization. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Love, JH, Roper, S & Du, J, 'Innovation, ownership and profitability' International journal of industrial organization, vol. 27, no. 3 (2009) DOI 10.1016/j.ijindorg.2008.11.001
Uncontrolled Keywords: innovation,ownership,profitability,quantile regression,Ireland,Northern Ireland,Strategy and Management,Industrial relations,Aerospace Engineering,Industrial and Manufacturing Engineering
Publication ISSN: 0167-7187
Last Modified: 10 Apr 2024 07:09
Date Deposited: 27 Oct 2009 11:54
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2009-05
Authors: Love, James H.
Roper, Stephen
Du, Jun (ORCID Profile 0000-0002-0449-4437)



Version: Accepted Version

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