The impact of cross-border mergers and acquisitions on the acquirers' R&D - Firm-level evidence

International Journal of Industrial Organization

Volumn 31, Issue 4, 2013, Pages 307-321

  Stiebale, Joel ^a,b  

^a UNIVERSITY OF NOTTINGHAM   (United Kingdom)

^b Nottingham Centre for Research on Globalisation and Economic Policy ^*  (Germany)

Author keywords

Innovation; Mergers and acquisitions; Multinational enterprises

Indexed keywords

CROSS-BORDER ACQUISITIONS; FOREIGN ACQUISITIONS; FOREIGN DIRECT INVESTMENTS; IDENTIFICATION STRATEGIES; INNOVATION ACTIVITY; INSTRUMENTAL VARIABLES; MULTINATIONAL ENTERPRISE; RESEARCH AND DEVELOPMENT;

ECONOMICS; INNOVATION; MERGERS AND ACQUISITIONS;

INDUSTRY;

EID: 84878651648     PISSN: 01677187     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijindorg.2013.04.005     Document Type: Article

References (82)

1. A. Abadie Semiparametric instrumental variable estimation of treatment response models Journal of Econometrics 113 2 2003 231 263
2. P. Aghion, N. Bloom, R. Blundell, R. Griffith, and P. Howitt Competition and innovation: an inverted U relationship Quarterly Journal of Economics 120 2 2005 701 728
3. P. Aghion, R. Blundell, R. Griffith, P. Howitt, and S. Prantl The effects of entry on incumbent innovation and productivity The Review of Economics and Statistics 91 1 2009 20 32
4. G. Ahuja, and R. Katila Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study Strategic Management Journal 22 2001 197 220
5. R. Almeida The labor market effects of foreign owned firms Journal of International Economics 72 1 2007 75 96
6. J. Angrist Estimation of limited dependent variable models with dummy endogenous regressors Journal of Business and Economic Statistics 19 1 2001 2 16
7. J.M. Arnold, and B.S. Javorcik Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia Journal of International Economics 79 1 2009 42 53
8. K. Arrow Economic welfare and the allocation of resources for invention R. Nelson, The Rate and Direction of Inventive Activity 1962 Princeton University Press Princeton, NJ 609 625
9. B.Y. Aw, M.J. Roberts, and T. Winston Export market participation, investments in r&d and worker training, and the evolution of firm productivity The World Economy 14 2007 83 104
10. B.Y. Aw, M.J. Roberts, and D.Y. Xu R&D investments, exporting, and the evolution of firm productivity American Economic Review, Papers and Proceedings 98 2008 451 456
11. L. Benfratello, and A. Sembenelli Foreign ownership and productivity: is the direction of causality so obvious? International Journal of Industrial Organization 24 4 2006 733 751
12. O. Bertrand Effects of foreign acquisitions on R&D activity: evidence from firm-level data for France Research Policy 38 6 2009 1021 1031
13. O. Bertrand, and H. Zitouna Trade liberalization and industrial restructuring: the role of cross-border mergers and acquisitions Journal of Economics and Management Strategy 15 2 2006 479 515
14. O. Bertrand, and P. Zuninga R&D and M&A: are cross-border M&A different? An investigation on OECD countries International Journal of Industrial Organization 24 2006 401 423
15. O. Bertrand, K.N. Hakkala, P.J. Norbaeck, and L. Persson Should countries block foreign takeovers of R&D champions and promote greenfield entry? Canadian Journal of Economics 45 3 2012 1083 1124
16. K. Bjorvatn Economic integration and the profitability of cross-border mergers and acquisitions European Economic Review 48 2004 1211 1226
17. B.A. Blonigen A review of the empirical literature on FDI determinants Atlantic Economic Journal 33 4 2005 383 403
18. B.A. Blonigen, L. Fontagné, N. Sly, and F. Toubal Cherries for sale: export networks and the incidence of cross-border M&A NBER Working Paper No. 18414 2012
19. S.L. Brainard An empirical assessment of the proximity-concentration trade-off between multinational sales and trade American Economic Review 87 4 1997 520 544
20. S. Brakman, H. Garretsen, and v.C. Marrewijk Cross-border mergers & acquisitions: the facts as a guide for international economics Working Paper No. 1823 2006 CESifo
21. J.W. Budd, J. Konings, and M.J. Slaughter Wages and international rent sharing in multinational firms The Review of Economics and Statistics 87 1 2005 73 84
22. M. Caliendo, and S. Kopeinig Some practical guidance for the implementation of propensity score matching Journal of Economic Surveys 22 1 2008 31 72
23. M. Cassiman, and R. Veugelers In search of complementarity in innovation strategy: internal R&D and external knowledge acquisition Management Science 52 1 2005 68 82
24. M. Cassiman, B. Colombo, P. Garrone, and R. Veugelers The impact of M&A on the R&D process: an empirical analysis of the role of technological- and market-relatedness Research Policy 34 2 2005 195 220
25. M. Cloodt, J. Hagedoorn, and H. Van Kranenburg Mergers and acquisitions: their effect on the innovative performance of companies in high-tech industries Research Policy 35 5 2006 642 654
26. W. Cohen, and R. Levine Empirical studies of innovation and market structure R. Schmalensee, R. Willig, Handbook of Industrial Organization Vol. 2 1989 Elsevier
27. M.A. Desai, F.C. Foley, and J.R. Hines Domestic effects of the foreign activities of US multinationals American Economic Journal: Economic Policy 1 1 2009 181 203
28. P. Desyllas, and A. Hughes Do high technology acquirers become more innovative? Research Policy 39 8 2010 1105 1121
29. European Commission The 2011 EU industrial R&D investment scoreboard JRC Science and Technical Research Series 2011
30. G. Fors, and R. Svensson R&D and foreign sales in Swedish multinationals: a simultaneous relationship? Research Policy 31 1 2002 95 107
31. R. Frey, and K. Hussinger European market integration through technology driven M&A Applied Economics 43 17 2011 2143 2153
32. R. Gilbert Looking for Mr. Schumpeter: where are we in the competition-innovation debate? J. Lerner, S. Stern, Innovation Policy and Economy 2006 NBER, MIT Press
33. R.J. Gilbert, and D.M. Newbery Preemptive patenting and the persistence of monopoly American Economic Review 72 1982 514 526
34. R. Griffith, S. Redding, and J. Van Reenen Mapping the two faces of R&D: productivity growth in a panel of OECD industries The Review of Economics and Statistics 86 2004 883 895
35. M. Guadalupe, O. Kuzmina, and C. Thomas Innovation and foreign ownership American Economic Review 102 7 2012 3594 3627
36. J. Haagedorn, and G. Duysters The effect of mergers and acquisitions on the technological performance of companies in a high-tech environment Technology Analysis and Strategic Management 14 2002 67 85
37. B.H. Hall The impact of corporate restructuring on industrial research and development Brookings Papers on Economic Activity 3 1990 85 135
38. B.H. Hall, and J. Mairesse Empirical studies of innovation in the knowledge-driven economy Economics of Innovation and New Technology 15 4-5 2006 289 299
39. K. Head, and J. Ries Heterogeneity and the FDI versus export decision of Japanese manufacturers Journal of the Japanese and International Economies 17 4 2003 448 467
40. K. Head, and J. Ries FDI as an outcome of the market for corporate control: theory and evidence Journal of International Economics 74 1 2008 2 20
41. E. Helpman Trade, FDI, and the organization of firms Journal of Economic Literature 44 3 2006 589 630
42. E. Helpman, M.J. Melitz, and S.R. Yeaple Export versus FDI with heterogeneous firms American Economic Review 94 1 2004 300 316
43. A. Hijzen, H. Görg, and M. Manchin Cross-border mergers and acquisitions and the role of trade costs European Economic Review 52 5 2008 849 866
44. M.A. Hitt, and R.E. Hoskisson Mergers and acquisitions and managerial commitment to innovation in M-form firms Strategic Management Journal 11 1990 29 47
45. M.A. Hitt, R.E. Hoskisson, R.D. Ireland, and J.S. Harrison Effects of acquisitions on R&D inputs and outputs Academy of Management Journal 34 1991 693 706
46. H. Horn, and L. Persson The equilibrium ownership of an international oligopoly Journal of International Economics 53 2001 307 333
47. J. Howell The location of research and development: some observations and evidence from Britain Regional Studies 18 1984 13 29
48. B. Jovanovic, and P.L. Rousseau Mergers as reallocation The Review of Economics and Statistics 90 4 2008 765 776
49. M.I. Kamien, and I. Zang The limits of monopolization through acquisition Quarterly Journal of Economics 105 2 1990 465 499
50. M.I. Kamien, E. Muller, and I. Zang Research joint ventures and R&D cartels American Economic Review 82 1992 1293 1306
51. S. Kaplan The effects of management buyouts on operating performance and value Journal of Financial Economics 44 1989 611 632
52. J. Konings, and A. Murphy Do multinational enterprises relocate employment to low wage regions? Evidence from European multinationals Review of World Economics 142 2 2006 267 286
53. N. Kumar Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations Research Policy 30 2001 159 174
54. M. Lechner Identification and estimation of causal effects of multiple treatments under the conditional independence assumption M. Lechner, F. Pfeiffer, Econometric Evaluations of Active Labor Market Policies in Europe 2001 Physica Heidelberg
55. W.F. Long, and D.J. Ravenscraft LBOs, debt and R&D intensity Strategic Management Journal 14 1993 119 135
56. J.M. MacDonald R&D and the direction of diversification The Review of Economics and Statistics 47 1985 583 590
57. G.S. Maddala Limited-dependent and Qualitative Variables in Econometrics 1983 Cambridge University Press
58. R. Marin, and I. Alvarez Technological effects of M&As in Spanish manufacturing Industrial and Corporate Change 18 4 2009 761 784
59. Y. Mundlak On the pooling of time series and cross section data Econometrica 46 1978 69 85
60. J.P. Neary Foreign direct investment and the single market The Manchester School 70 3 2002 291 314
61. J.P. Neary Cross-border mergers as instruments of comparative advantage Review of Economic Studies 74 4 2007 1229 1257
62. V. Nocke, and S.R. Yeaple Cross-border mergers and acquisitions vs. greenfield foreign direct investment: the role of firm heterogeneity Journal of International Economics 72 2 2007 336 365
63. V. Nocke, and S.R. Yeaple An assignment theory of foreign direct investment Review of Economic Studies 75 2 2008 529 557
64. P.-J. Norbäck, and L. Persson Investment liberalization - why a restrictive cross-border merger policy can be counterproductive Journal of International Economics 72 2 2007 366 380
65. L.E. Papke, and J.M. Wooldridge Panel data models for fractional response variables with an application to test past rates Journal of Econometrics 145 1-2 2008 121 133
66. F. Reize KfW-Mittelstandspanel 2004 - Repräsentative Analyse zu Investitionen und Beschäftigungseffekten kleiner und mittlerer Unternehmen 2004 KfW Bankengruppe
67. L.-H. Röller, J. Stennek, and F. Verboven Efficiency gains from mergers European Economy 5 2001 31 128
68. D. Sacco, and A. Schmutzler Is there a U-shaped relation between competition and investment? International Journal of Industrial Organization 29 2011 65 73
69. S. Salis Foreign acquisition and firm productivity: evidence from Slovenia The World Economy 31 8 2008 1030 1048
70. F. Sanna-Randaccio, and R. Veugelers Multinational knowledge spillover with decentralized R&D: a game-theoretic approach Journal of International Business Studies 38 1 2007 47 63
71. A. Schmutzler The relation between competition and innovation - why is it such a mess CEPR Discussion Paper No. DP7640 2010
72. K. Shimizu, M.A. Hitt, D. Vaidyanath, and V. Pisano Theoretical foundations of cross-border mergers and acquisitions: a review of current research and recommendations for the future Journal of International Management 10 2004 307 353
73. A. Shleifer, and R. Vishny Value maximization and the acquisition process Journal of Economic Perspectives 2 1 1988 7 20
74. R.J. Smith, and R.W. Blundell An exogeneity test for a simultaneous equation model with an application to labor supply Econometrica 54 3 1986 679 685
75. J. Stiebale, and F. Reize The impact of FDI through mergers and acquisitions on innovation in target firms International Journal of Industrial Organization 29 2011 155 167
76. J. Stiebale, and M. Trax The effects of cross-border M&As on the acquirers' domestic performance: firm-level evidence Canadian Journal of Economics 44 3 2011 957 990
77. UNCTAD World Investment Report 2005: Transnational Corporations and the Internationalization of R&D 2005 United Nations
78. UNCTAD World Investment Report 2007: Transnational Corporations, Extractive Industries and Development 2007 United Nations
79. R. Veugelers Literature review on M&A and R&D B. Cassiman, M.G. Colombo, Mergers and Acquisitions - The Innovation Impact 2006 Edward Elgar Publishing
80. X. Vives Innovation and competitive pressure The Journal of Industrial Economics LVI 3 2008 419 467
81. J.M. Wooldridge Econometric Analysis of Cross-section and Panel Data 2002 MIT Press
82. J.M. Wooldridge Should Instrumental Variables be used as Matching Variables? Tech. Report 2009 Michigan State University MI