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M&A and Innovation: A New Classification of Patents

Author

Listed:
  • Zhaoqi Cheng
  • Ginger Zhe Jin
  • Mario Leccese
  • Dokyun Lee
  • Liad Wagman

Abstract

Policymakers are increasingly concerned that incumbent acquisitions of small or young firms may slow down rather than speed up innovation, but it is difficult to identify which firms are related in the fast-changing space of technological innovation. This paper proposes a new, data-driven method to classify patent data into tech-business zones on a probabilistic basis, using patent assignee information. After combining mergers and acquisitions data from S&P Global Market Intelligence with PatentsView data from the US Patent and Trademark Office, we discuss how the zone classification can aid merger reviews and other lines of research.

Suggested Citation

  • Zhaoqi Cheng & Ginger Zhe Jin & Mario Leccese & Dokyun Lee & Liad Wagman, 2023. "M&A and Innovation: A New Classification of Patents," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 288-293, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:288-93
    DOI: 10.1257/pandp.20231100
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    References listed on IDEAS

    as
    1. Leonid Kogan & Dimitris Papanikolaou & Amit Seru & Noah Stoffman, 2017. "Technological Innovation, Resource Allocation, and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 665-712.
    2. Jin, Ginger Zhe & Leccese, Mario & Wagman, Liad, 2023. "How Do Top Acquirers Compare in Technology Mergers? New Evidence from an S&P Taxonomy," International Journal of Industrial Organization, Elsevier, vol. 89(C).
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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