Do Mergers of Potentially Dominant firms foster Innovation?
We investigate the effects of M&A on innovation in the specific context of potential or realized market dominance. Authorities are challenged by balancing both detrimental and beneficial effects of mergers on innovation, especially when a merger threatens to result in market dominance, while firms would wish to uncover all the potential benefits arising from M&A. The effects of M&As on innovation have been tested on a panel dataset, constructed from the Dutch Community Innovation Survey and the Dutch Business Register, including around 1000 manufacturing companies. We have adopted... Mehr ...
Verfasser: | |
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Dokumenttyp: | report |
Erscheinungsdatum: | 2007 |
Verlag/Hrsg.: |
Tjalling C. Koopmans Research Institute
Utrecht University |
Schlagwörter: | acquisition / businesses / economics / expenditure / firms / innovations / market economics / mergers / netherlands / acquisitie / bedrijven / bestedingen / economie / firma's / fusies / innovaties / markteconomie / nederland |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-27165176 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | https://research.wur.nl/en/publications/do-mergers-of-potentially-dominant-firms-foster-innovation |
We investigate the effects of M&A on innovation in the specific context of potential or realized market dominance. Authorities are challenged by balancing both detrimental and beneficial effects of mergers on innovation, especially when a merger threatens to result in market dominance, while firms would wish to uncover all the potential benefits arising from M&A. The effects of M&As on innovation have been tested on a panel dataset, constructed from the Dutch Community Innovation Survey and the Dutch Business Register, including around 1000 manufacturing companies. We have adopted a comprehensive approach, taking into consideration three dimensions of innovation: innovation inputs, innovation outputs and efficiency. The results show that M&As performed in the previous 3-5 years have a positive and significant effect on innovation except R&D expenses and innovation efficiencies. The results also suggest that technological regimes are critical to understanding the patterns of innovation.