Beyond knowledge bases: Towards a better understanding of the effects of M&A on technological performance

Abstract

This chapter deals with the impact of mergers and acquisitions (M&A) on technological performance. We argue that, when it provides additional technological resources, M&A promote the creation of more value in the innovation process. Instead, when it allows the redeployment of complementary assets, M&A enable more value to be captured from the innovations, and hence foster firms’ incentives in the innovation process. Hypotheses are tested on a sample of deals that were completed in the U.S. “medical devices and photographic equipment” sector in the period 1988–1996.

Citation

Valentini, G. and Dawson, A. (2010), "Beyond knowledge bases: Towards a better understanding of the effects of M&A on technological performance", Cooper, C.L. and Finkelstein, S. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 177-197. https://doi.org/10.1108/S1479-361X(2010)0000009011