Technology sourcing by large incumbents through acquisition of small firms
AbstractInnovation activities in high technology industries provide considerable challenges for technology and innovation management. In particular, since these industries have a long history of radical innovations taking place through distinct industry cycles of higher and lower demand, firms frequently consider the option to use acquisitions as a means for technology sourcing. The paper investigates this behaviour for three high technology industries, namely semiconductor manufacturing, biotechnology and electronic design automation which is a specific sub-segment of the semiconductor industry. It analyses the association of firm characteristics with different aspects of acquisition behaviour with a particular focus being put on innovation-related firm characteristics. The paper confirms a substitutive relationship between acquisitions and own research activities as well as between own and acquired firm patenting, but also finds that firm size, financial conditions and geographical origin of the firm matter for acquisition behaviour.
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Bibliographic InfoPaper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2008-055.
Length: 26 pages
Date of creation: 2008
Date of revision:
Acquisition; innovation; high technology; quantitative methods; research; R&D;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-21 (All new papers)
- NEP-BEC-2008-08-21 (Business Economics)
- NEP-COM-2008-08-21 (Industrial Competition)
- NEP-CSE-2008-08-21 (Economics of Strategic Management)
- NEP-INO-2008-08-21 (Innovation)
- NEP-IPR-2008-08-21 (Intellectual Property Rights)
- NEP-KNM-2008-08-21 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2008-08-21 (Microeconomics)
- NEP-TID-2008-08-21 (Technology & Industrial Dynamics)
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