Innovation, Ownership And Profitability
Source: Aston University
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. The authors consider the link between innovation and profits separately for innovators and non-innovators, and for indigenous innovators and non-innovators and externally-owned plants. The authors 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.