Original scientific paper
https://doi.org/10.1080/1331677X.2019.1660199
The lasting effects of innovation on firm profitability: panel evidence from a transitional economy
Anh Ngoc Mai
; Faculty of Accounting, Academy of Finance, Hanoi, Vietnam
Huong Van Vu
; Center for Data and Socio-Economic Analysis, VNU University of Economics and Business, Hanoi, Vietnam
Bien Xuan Bui
; Financial and Banking University, Hanoi, Vietnam
Tuyen Quang Tran
; Center for Data and Socio-Economic Analysis, VNU University of Economics and Business, Hanoi, Vietnam
Abstract
This study is the first to study the lasting effects of innovation on firm profitability in Vietnam. Using a unique panel dataset for the period 2005–2015, our results show that innovators achieve higher profit in comparison with non-innovating firms. The positive effects of innovation on firm profitability are observed not only in the short term but also in the longer term. The benefits of innovation for firm profitability can be seen in higher export probability, better productivity, better access to formal credit, and the ability to secure government support, but only after innovation.
Keywords
Innovation; firm profitability; SMEs and Vietnam
Hrčak ID:
229686
URI
Publication date:
22.1.2019.
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