30 مرداد 96 برگزار مي شود
سخنراني مهديه انتظار خير استاديار دانشگاه وسترن اونتاريو كانادا در موسسه عالي آموزش و پژوهش مديريت و برنامه ريزي در باره نوآوري و تصميم گيري
Mahdiyeh Entezarkheir - Saeed Moshiriy R&D Spillovers and Merger Decisions: Evidence from a Panel of U.S. Firms
اقتصادگردان
Abstract
The large number of mergers in innovative industries points to a relation between
mergers and innovation. Firms' innovative ideas may spillover to other rms dis-
incentivizing innovation activities, and merger may be seen as a way to capture inno-
vation spillover. The merger-innovation nexus has been well studied in the theoretical
literature and recently in the empirical papers, but empirical evidence on merger and
innovation spillover is rare. In this paper, we construct a panel data set of mergers
among publicly traded U.S. manufacturing rms from 1980 to 2003 and investigate
the impact of innovation spillovers on rms' merger likelihood controlling for business
cycles and proxies of neoclassical, behavioural and Q theories of mergers. Innovation is
measured using R&D investments as well as citation-weighted patents and innovation
spillover is proxied using the proximity of rms in their technological eld. As a source
of R&D (outward spillover), a rm can internalize its spillover e ects by acquiring the
targets that bene t from the spillover. Also, as a receiver of an R&D spillover (in-
ward spillover), a rm may want to merge because of controlling the negative impact
of other's innovation on their competitive edge. We nd that the rms with inno-
vative activities are on average more likely to merge and that innovation spillover is
an important driver of merger decisions. Our results also show that within industry
inward R&D spillovers increase the likelihood of mergers but between industry inward
R&D spillovers do not in
uence the merger decisions signi cantly. Our main results
are robust to alternative measures of spillovers and di erent estimation methods.
Keywords: Merger, Innovation, R&D, Spillovers, Competition, Patent
JEL Classi cation Numbers: L12, L13, L22, L40, L44, L60, O31, O32, O34
Corresponding Author: Assistant Professor, Department of Economics, Huron at University of Western
Ontario, London, Canada. Email: menteza@uwo.ca.
yAssociate Professor, Department of Economics, STM College, University of Saskachewan, Saskatoon,
Canada. Email: smoshiri@stmcollege.ca.
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The large number of mergers in innovative industries points to a relation between
mergers and innovation. Firms' innovative ideas may spillover to other rms dis-
incentivizing innovation activities, and merger may be seen as a way to capture inno-
vation spillover. The merger-innovation nexus has been well studied in the theoretical
literature and recently in the empirical papers, but empirical evidence on merger and
innovation spillover is rare. In this paper, we construct a panel data set of mergers
among publicly traded U.S. manufacturing rms from 1980 to 2003 and investigate
the impact of innovation spillovers on rms' merger likelihood controlling for business
cycles and proxies of neoclassical, behavioural and Q theories of mergers. Innovation is
measured using R&D investments as well as citation-weighted patents and innovation
spillover is proxied using the proximity of rms in their technological eld. As a source
of R&D (outward spillover), a rm can internalize its spillover e ects by acquiring the
targets that bene t from the spillover. Also, as a receiver of an R&D spillover (in-
ward spillover), a rm may want to merge because of controlling the negative impact
of other's innovation on their competitive edge. We nd that the rms with inno-
vative activities are on average more likely to merge and that innovation spillover is
an important driver of merger decisions. Our results also show that within industry
inward R&D spillovers increase the likelihood of mergers but between industry inward
R&D spillovers do not in
uence the merger decisions signi cantly. Our main results
are robust to alternative measures of spillovers and di erent estimation methods.
Keywords: Merger, Innovation, R&D, Spillovers, Competition, Patent
JEL Classi cation Numbers: L12, L13, L22, L40, L44, L60, O31, O32, O34
Corresponding Author: Assistant Professor, Department of Economics, Huron at University of Western
Ontario, London, Canada. Email: menteza@uwo.ca.
yAssociate Professor, Department of Economics, STM College, University of Saskachewan, Saskatoon,
Canada. Email: smoshiri@stmcollege.ca.
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