Impact of M&A by foreign companies on innovation activities of acquired companies (Japanese)

Shinya Suzuki, Tomohiko Inui and Yuya Ikeda

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In recent years, the number of acquisitions of Japanese companies by foreign companies has been increasing. In addition, M&As for technology acquisition are becoming more important, especially in industries such as automobiles and semiconductors, where radical technological changes such as electrification and autonomous driving are occurring. There is a possibility that R&D activities and technological resources are reorganized within the corporate group after the implementation of international M&As. In this study, we examine how the R&D activities of Japanese companies acquired by foreign companies change using a panel dataset at the firm level. The results show that R&D expenditures of an acquired company tend to decrease after the acquisition by a foreign company. However, R&D expenditures do not decrease after the acquisition in industries such as transportation machinery and electronic machinery. Furthermore, the effects of an acquisition on R&D expenditures of the acquired company vary depending on the nationality of the acquiring company.

Pages: 34 pages
Date: 2021-03
New Economics Papers: this item is included in nep-com and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:21012

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