R&D and M&A: Are cross-border M&A different? An investigation on OECD countries

Olivier Bertrand () and Pluvia Zuniga
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Olivier Bertrand: TEAM

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper investigates the incidence of national and cross-border M&A on industrial R&D investment in OECD countries over the period 1990-1999. We use generalized method of moments (GMM) estimation techniques for dynamic panel data and control for market-related and technological determinants of R&D production. Our findings show that the last M&A wave contributed to expand domestic R&D activities, especially in high-technology intensive industries. However, further evidence suggests that cross-border M&A (particularly outward M&A), and not domestic ones, have stimulated more significantly R&D spending. This result gives evidence that anti-competition effects are more likely to affect negatively R&D activities with a domestic M&A. Reversely, efficiency gains might be higher in a cross-border operation, encouraging merging firms to raise their R&D investments

Keywords: M&A; Industrial restructuring; R&D, technology (search for similar items in EconPapers)
JEL-codes: F23 L10 O30 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2004-07
New Economics Papers: this item is included in nep-com, nep-cwa, nep-geo and nep-ino
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Citations: View citations in EconPapers (1)

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Journal Article: R&D and M&A: Are cross-border M&A different? An investigation on OECD countries (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:bla04072

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