R&D and M&A : Are cross-border M&A different ? An investigation on OECD countries
AbstractThis 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.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla04072.
Length: 33 pages
Date of creation: Jul 2004
Date of revision:
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M&A; Industrial restructuring; R&D; technology.;
Other versions of this item:
- Bertrand, Olivier & Zuniga, Pluvia, 2006. "R&D and M&A: Are cross-border M&A different? An investigation on OECD countries," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 401-423, March.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-03-13 (All new papers)
- NEP-COM-2005-03-13 (Industrial Competition)
- NEP-CWA-2005-03-13 (Central & Western Asia)
- NEP-GEO-2005-03-13 (Economic Geography)
- NEP-INO-2005-03-13 (Innovation)
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- Frey, Rainer & Hussinger, Katrin, 2006.
"The role of technology in M&As: a firm-level comparison of cross-border and domestic deals,"
Discussion Paper Series 1: Economic Studies
2006,45, Deutsche Bundesbank, Research Centre.
- Frey, Rainer & Hussinger, Katrin, 2006. "The Role of Technology in M&As: A Firm Level Comparison of Cross-Border and Domestic Deals," ZEW Discussion Papers 06-69, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bertrand, Olivier & Hakkala, Katariina & Norbäck, Pehr-Johan, 2007. "Cross-Border Acquisition or Greenfield Entry: Does it Matter for Affiliate R&D?," Working Paper Series 693, Research Institute of Industrial Economics.
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