Technology Sourcing Through Acquisitions Do High Quality Patents Attract Acquires?
AbstractThis study analyses how patent quality impacts the likelihood of acquisition. If a firm owns high quality or valuable patents, other firms may be interested in buying the firm to obtain the ownership of these patents. To proxy the quality of patents, we use both forward and backward citations. Moreover, our data enables us to distinguish between cross-border and domestic targets. Multinomial logit estimations show that owning patents correlates with becoming a target for a foreign firm. The same does not apply to targets for domestic firms. However, we do not find evidence that the quality of patents impacts the likelihood of becoming target for a domestic or a foreign firm.
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Bibliographic InfoPaper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1025.
Length: 16 pages
Date of creation: 2006
Date of revision:
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-24 (All new papers)
- NEP-COM-2006-06-24 (Industrial Competition)
- NEP-INO-2006-06-24 (Innovation)
- NEP-TID-2006-06-24 (Technology & Industrial Dynamics)
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