The innovation performance of Irish and foreign-owned firms: The roles of R&D and networking

Show simple item record Doran, Justin O'Leary, Eoin 2018-04-19T11:04:06Z 2018-04-19T11:04:06Z 2016-01-20
dc.identifier.citation Doran, J. and O'Leary, E. (2016) 'The Innovation Performance of Irish and Foreign‐owned Firms: The Roles of R&D and Networking', The World Economy, 39(9), pp. 1384-1398. doi: 10.1111/twec.12378 en
dc.identifier.volume 39 en
dc.identifier.issued 9 en
dc.identifier.startpage 1384 en
dc.identifier.endpage 1398 en
dc.identifier.issn 0378-5920
dc.identifier.issn 1467-9701
dc.identifier.doi 10.1111/twec.12378
dc.description.abstract This paper contributes to the growing evidence that Irish and foreign‐owned firms based in Ireland conduct their innovation activities differently from each other. It tests the Cohen and Levinthal hypothesis, separately for Irish and foreign‐owned firms, that undertaking R&D and collaborating with external networks together enhance the probability of product and process innovation. To control for potential endogeneity of the external networking variables, a two‐step procedure is used with predicted probabilities used as instruments in the estimated production functions. Based on data from the Irish Community Innovation Survey 2006 to 2008, the results suggest that Irish‐owned firms which engage in external networks with public knowledge sources, while simultaneously undertaking R&D, are more likely to innovate than firms which perform these two activities individually. Irish‐owned firms which engage in backward networking for product and forward networking for process innovation while also undertaking R&D are less likely to be innovative, perhaps suggesting a substitution effect. These results for Irish‐owned firms provide some support for Cohen and Levinthal's hypothesis. However, foreign‐owned firms seem to behave differently, being largely self‐contained and relying exclusively on intramural R&D for innovation as the external networking variables, both individually and when interacted with R&D, have no effect on innovation likelihood. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Wiley en
dc.rights © 2016 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Doran, J. and O'Leary, E. (2016), The Innovation Performance of Irish and Foreign‐owned Firms: The Roles of R&D and Networking. World Econ, 39: 1384-1398, which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. en
dc.subject Innovation en
dc.subject Irish‐owned firms en
dc.subject Research & development (R&D) en
dc.subject Irish Community Innovation Survey en
dc.subject Cohen and Levinthal hypothesis en
dc.subject Innovation production function en
dc.title The innovation performance of Irish and foreign-owned firms: The roles of R&D and networking en
dc.type Article (peer-reviewed) en
dc.internal.authorcontactother Justin Doran, Economics, University College Cork, Cork, Ireland. +353-21-490-3000 Email: en
dc.internal.availability Full text available en 2018-04-17T14:25:39Z
dc.description.version Accepted Version en
dc.internal.rssid 325232187
dc.description.status Peer reviewed en
dc.identifier.journaltitle The World Economy en
dc.internal.copyrightchecked Yes en
dc.internal.licenseacceptance Yes en
dc.internal.IRISemailaddress en

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