Cross-Border M&As and Innovative Activity of Acquiring and Target Firms

Joel Stiebale

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: This paper analyzes the effects of cross-border mergers and acquisitions (M&As) on the innovation of European firms. The results indicate a considerable increase in post-acquisition innovation in the merged entity. This is mainly driven by inventors based in the acquirer's country, while innovation in the target's country tends to decline. The asymmetry of effects between acquiring and target firms increases with pre-acquisition differences in knowledge stocks, indicating a relocation of innovative activities towards more efficient usage within multinational firms. Instrumental variable techniques as well as a propensity-score matching approach indicate that the effect of cross-border M&As on innovation is causal.

JEL-codes: D22 F23 G34 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino, nep-int and nep-knm
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https://www.econstor.eu/bitstream/10419/112898/1/VfS_2015_pid_245.pdf (application/pdf)

Related works:
Journal Article: Cross-border M&As and innovative activity of acquiring and target firms (2016)
Working Paper: Cross-Border M&As and Innovative Activity of Acquiring and Target Firms (2014)
Working Paper: Cross-border M&As and innovative activity of acquiring and target firms (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:112898

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