Abstract
An examination is conducted into the effect which external ownership and other aspects of corporate ownership structure have on the likelihood of innovation for a sample of manufacturing plants located in Scotland. Econometric estimation indicates that plant size, the presence of in-plant R&D, and non-UK ownership have a positive effect on the likelihood of innovation. Multiplant operation, market power and variations in industrial structure have no discernible effect on innovation. The finding that foreign ownership is positively associated with innovation contrasts with previous research conducted on manufacturing plants in Northern Ireland.
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