Innovation, ownership and profitability

James H. Love, Stephen Roper, Jun Du

Research output: Preprint or Working paperWorking paper


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.
Original languageEnglish
Place of Publication(DK)
Number of pages37
ISBN (Print)978-87-7873-239-2
Publication statusPublished - Mar 2007

Publication series

NameDRUID working papers


  • innovation
  • ownership
  • profitability
  • Ireland
  • Northern Ireland


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