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.

Details

Title
The lasting effects of innovation on firm profitability: panel evidence from a transitional economy
Author
Mai, Anh Ngoc 1 ; Huong Van Vu 2 ; Bien Xuan Bui 3 ; Tran, Tuyen Quang 2 

 Faculty of Accounting, Academy of Finance, Hanoi, Vietnam; 
 Center for Data and Socio-Economic Analysis, VNU University of Economics and Business, Hanoi, Vietnam; 
 Financial and Banking University, Hanoi, Vietnam 
End page
3436
Publication year
2019
Publication date
Dec 2019
Publisher
Taylor & Francis Ltd.
ISSN
1331677X
e-ISSN
18489664
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2371538772
Copyright
© 2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.