Using a large and unique patent-merger dataset over the period 1984 to 2006, we show that companies with large patent … portfolios and low R&D expenses are acquirers, while companies with high R&D expenses and slow growth in patent output are target …

Using a large unique patent-merger dataset over the period 1984-2006, we uncover one specific source of synergies … merger partners. We first show that more innovative companies are more likely to be acquirers, while less innovative … and significant effect on merger pair formation. We then show that mergers are more likely to take place between firms …

technologies protected by a patent and we investigate whether an acquisition by a big tech contributes to their development. For … this analysis, we use patent citations as a proxy for the innovation effort by the acquirer. Our main result is to show … patent belongs to a core technology field of the acquiring firm or to a large patent portfolio. On the contrary, citations by …