IDEAS home Printed from
   My bibliography  Save this paper

Review of the Literature on the Impact of Mergers on Innovation


  • Schulz, Norbert


Both M&A and innovation are instruments for growth and competitive advantage. Therefore they are fundamental to each firm?s competitive strategy. Usually, both instruments have been studied separately, but much less in conjunction. This is unfortunate as both processes - the process of innovation and the process of mergers and acquisitions - are intimately connected. The impact of mergers on innovation can only be rigorously assessed, if the converse direction of influence - mergers caused by innovation - is accounted for. Therefore this review tries to take a balanced view on both processes and to point out links between them. Nevertheless, the focus is on the impact of mergers on innovation. This discussion paper is identical with an older version with the title ?Review on the Literature of Mergers on Innovation?.

Suggested Citation

  • Schulz, Norbert, 2007. "Review of the Literature on the Impact of Mergers on Innovation," ZEW Discussion Papers 07-061, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:6661

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Birgit Aschhoff & Tobias Schmidt, 2008. "Empirical Evidence on the Success of R&D Cooperation—Happy Together?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 41-62, August.
    3. Keith W. Glaister, 1996. "Strategic Motives For International Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 33(3), pages 301-332, May.
    4. Gomes-Casseres, Benjamin & Hagedoorn, John & Jaffe, Adam B., 2006. "Do alliances promote knowledge flows?," Journal of Financial Economics, Elsevier, vol. 80(1), pages 5-33, April.
    5. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    6. Rosenfeld, Stuart A., 1996. "Does cooperation enhance competitiveness? Assessing the impacts of inter-firm collaboration," Research Policy, Elsevier, vol. 25(2), pages 247-263, March.
    7. Bernhard Dachs & Bernd Ebersberger & Andreas Pyka, 2004. "Why do Firms Co-operate for Innovation? - A comparison of Austrian and Finnish CIS 3 results," Discussion Paper Series 255, Universitaet Augsburg, Institute for Economics.
    8. Gordon Kingsley & Edward J. Malecki, 2004. "Networking for Competitiveness," Small Business Economics, Springer, vol. 23(1), pages 71-84, August.
    9. Fritsch, Michael & Lukas, Rolf, 2001. "Who cooperates on R&D?," Research Policy, Elsevier, vol. 30(2), pages 297-312, February.
    10. John Hagedoorn & Rajneesh Narula, "undated". "Innovating through strategic alliances: moving towards international partnerships and contractual agreements," STEP Report series 199805, The STEP Group, Studies in technology, innovation and economic policy.
    11. Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for cooperation--A new approach in German innovation policy," Research Policy, Elsevier, vol. 34(8), pages 1269-1282, October.
    12. Becker, Wolfgang & Dietz, Jurgen, 2004. "R&D cooperation and innovation activities of firms--evidence for the German manufacturing industry," Research Policy, Elsevier, vol. 33(2), pages 209-223, March.
    13. Henri Capron & Michele Cincera, 2003. "Industry-university S&T transfers: what can we learn from Belgian CIS-2 data?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 46(3), pages 59-86.
    14. Hashem Pesaran & Davide Pettenuzzo & Allan Timmermann, 2007. "Learning, Structural Instability, and Present Value Calculations," Econometric Reviews, Taylor & Francis Journals, vol. 26(2-4), pages 253-288.
    15. Ebling, Günther & Janz, Norbert, 1999. "Export and innovation activities in the German service sector: empirical evidence at the firm level," ZEW Discussion Papers 99-53, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    16. Nelson, Richard R., 1990. "U.S. technological leadership: Where did it come from and where did it go?," Research Policy, Elsevier, vol. 19(2), pages 117-132, April.
    17. Sofka, Wolfgang & Schmidt, Tobias, 2004. "I Like The Way You Move: An Empirical Investigation into the Mechanisms Behind First Mover and Follower Strategies," ZEW Discussion Papers 04-87, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. Bonte, Werner & Keilbach, Max, 2005. "Concubinage or marriage? Informal and formal cooperations for innovation," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 279-302, April.
    19. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    20. Taylor, Mark P. & Schmidt, Markus & Reitz, Stefan, 2007. "End-user order flow and exchange rate dynamics," Discussion Paper Series 1: Economic Studies 2007,05, Deutsche Bundesbank.
    21. Röller, Lars-Hendrik & Siebert, Ralph & Tombak, Mihkel, 1997. "Why Firms Form Research Joint Ventures: Theory and Evidence," CEPR Discussion Papers 1654, C.E.P.R. Discussion Papers.
    22. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
    23. Penin, Julien, 2005. "Patents versus ex post rewards: A new look," Research Policy, Elsevier, vol. 34(5), pages 641-656, June.
    24. James D. Adams & Mircea Marcu, 2004. "R&D Sourcing, Joint Ventures and Innovation: A Multiple Indicators Approach," NBER Working Papers 10474, National Bureau of Economic Research, Inc.
    25. Tobias Schmidt, 2010. "Absorptive capacity-one size fits all? A firm-level analysis of absorptive capacity for different kinds of knowledge," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 1-18.
    26. repec:rus:hseeco:318682 is not listed on IDEAS
    27. Roberto FONTANA & Aldo GEUNA & Mireille MATT, 2005. "Factors Affecting University–Industry R&D Collaboration : The importance of screening and signalling," Working Papers of BETA 2005-07, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    28. Andrea Fern·ndez-Ribas & Isabel Busom, "undated". "Firm Strategies in R&D: Cooperation and Participation in R&D Program," Studies on the Spanish Economy 186, FEDEA.
    29. Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
    30. Czarnitzki, Dirk & Fier, Andreas, 2003. "Publicly Funded R&D Collaborations and Patent Outcome in Germany," ZEW Discussion Papers 03-24, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    31. Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September.
    32. Bayona, Cristina & Garcia-Marco, Teresa & Huerta, Emilio, 2001. "Firms' motivations for cooperative R&D: an empirical analysis of Spanish firms," Research Policy, Elsevier, vol. 30(8), pages 1289-1307, October.
    33. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    34. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May.
    35. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    36. Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June.
    37. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    38. De Bondt, Raymond & Veugelers, Reinhilde, 1991. "Strategic investment with spillovers," European Journal of Political Economy, Elsevier, vol. 7(3), pages 345-366, October.
    39. Masao Nakamura & Jiatao Li & Jing Zhong, 2003. "Explaining the growth of international R&D alliances in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 101-115.
    40. Palmberg, Christopher & Pajarinen, Mika, 2005. "Determinants of Internationalisation through Strategic Alliances - Insights Based on New Data on Large Finnish Firms," Discussion Papers 966, The Research Institute of the Finnish Economy.
    41. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    42. Yannis Caloghirou & Stavros Ioannides & Nicholas S. Vonortas, 2003. "Research Joint Ventures," Journal of Economic Surveys, Wiley Blackwell, vol. 17(4), pages 541-570, September.
    43. Laura Abramovsky & Elisabeth Kremp & Alberto López & Tobias Schmidt & Helen Simpson, 2005. "Understanding co-operative R&D activity: evidence from four European countries," IFS Working Papers W05/23, Institute for Fiscal Studies.
    44. Antoine Bureth & Rachel Levy & Julien Pénin & Sandrine Wolff, 2005. "Strategic Reasons for Patenting: Between Exclusion and Coordination Rationales," Rivista di Politica Economica, SIPI Spa, vol. 95(5), pages 19-46, September.
    45. Schmidt, Tobias, 2006. "An Empirical Analysis of the Effects of Patents and Secrecy on Knowledge Spillovers," ZEW Discussion Papers 06-048, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. E. Cefis & M. Ghita, 2008. "Post Merger Innovative Patterns in Small and Medium Firms," Working Papers 08-09, Utrecht School of Economics.
    2. Gordon M. Phillips & Alexei Zhdanov, 2017. "Venture Capital Investments and Merger and Acquisition Activity Around the World," NBER Working Papers 24082, National Bureau of Economic Research, Inc.

    More about this item


    innovation incentives; market structure; merger incentives;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:6661. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.