Net Innovation Pressure in Merger Analysis

I derive a Net Innovation Pressure (NIP) formula based on logic that is similar to the logic underlying Upward Pricing Pressure (UPP) and that takes account of R&D spillovers. As with UPP, diversion is a key determinant of NIP, but the price-cost margin is not. The formula, which is quite simple, reveals that whether a merger decreases or increases the incentive to innovate depends on whether the diversion rate is greater or less than the R&D spillover rate

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Year of publication:	2019
Authors:	Salinger, Michael A.
Publisher:	[2019]: [S.l.] : SSRN
Subject:	Fusion \| Merger \| Innovation \| Fusionskontrolle \| Merger control \| Innovationsmanagement \| Innovation management

Extent:	1 Online-Ressource (26 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 1, 2019 erstellt
Other identifiers:	10.2139/ssrn.3051249 [DOI]
Classification:	L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration ; L40 - Antitrust Policy. General ; O31 - Innovation and Invention: Processes and Incentives ; O38 - Government Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012900890