Inventors? Response to Firm Acquisitions
Mergers and acquisitions (M&As) constitute a disruption to the working environment of the inventive labor force of the acquired company. If inventors would respond with a decline of their patent productivity or departure from the firm this can be detrimental to the innovative process within the merged entity and can be contradictory to the aims of the firm acquisition. This paper provides empirical evidence on post-merger mobility and productivity of 673 inventors employed by European acquisition targets in the years 2000 and 2001. The empirical results show that 1.) the most productive and experienced individuals stay with the merged entity; 2.) inventors that left the acquired firm are less productive in post-merger years than those that stayed with the merged entity; 3.) M&As trigger inventor mobility, but do not lead to a decline in patent productivity if compared to a control group of inventors that have not been involved in a firm acquisition.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Melamed, Ran & Shiff, Gil & Trajtenberg, Manuel, 2006.
"The 'Names Game': Harnessing Inventors Patent Data for Economic Research,"
CEPR Discussion Papers
5833, C.E.P.R. Discussion Papers.
- Manuel Trajtenberg & Gil Shiff & Ran Melamed, 2006. "The "Names Game": Harnessing Inventors' Patent Data for Economic Research," NBER Working Papers 12479, National Bureau of Economic Research, Inc.
- 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.
- Reinganum, Jennifer F, 1983.
"Uncertain Innovation and the Persistence of Monopoly,"
American Economic Review,
American Economic Association, vol. 73(4), pages 741-48, September.
- Reinganum, Jennifer R., 1982. "Uncertain Innovation and the Persistence of Monopoly," Working Papers 431, California Institute of Technology, Division of the Humanities and Social Sciences.
- Levin, Sharon G & Stephan, Paula E, 1991. "Research Productivity over the Life Cycle: Evidence for Academic Scientists," American Economic Review, American Economic Association, vol. 81(1), pages 114-32, March.
- Karin Hoisl, 2009. "Does mobility increase the productivity of inventors?," The Journal of Technology Transfer, Springer, vol. 34(2), pages 212-225, April.
- Dosi, Giovanni, 1982.
"Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change,"
Elsevier, vol. 11(3), pages 147-162, June.
- Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
- O'DONOGHUE, Ted & SCOTCHMER, Suzanne & THISSE, Jacques-FranÃ§ois, .
"Patent breadth, patent life, and the pace of technological progress,"
CORE Discussion Papers RP
1314, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, 03.
- Hussinger, Katrin & Grimpe, Christoph, 2007. "Firm Acquisitions and Technology Strategy: Corporate versus Private Equity Investors," ZEW Discussion Papers 07-066, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Hoisl, Karin, 2006. "Does Mobility Increase the Productivity of Inventors?," Discussion Papers in Business Administration 2023, University of Munich, Munich School of Management.
- Ornaghi, Carmine, 2006. "Mergers and innovation: the case of the pharmaceutical industry," Discussion Paper Series In Economics And Econometrics 0605, Economics Division, School of Social Sciences, University of Southampton.
- Cassiman, Bruno & Colombo, Massimo G. & Garrone, Paola & Veugelers, Reinhilde, 2005. "The impact of M&A on the R&D process: An empirical analysis of the role of technological- and market-relatedness," Research Policy, Elsevier, vol. 34(2), pages 195-220, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:6898. 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)
If references are entirely missing, you can add them using this form.