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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.
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1 Faculty of Accounting, Academy of Finance, Hanoi, Vietnam;
2 Center for Data and Socio-Economic Analysis, VNU University of Economics and Business, Hanoi, Vietnam;
3 Financial and Banking University, Hanoi, Vietnam