This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the … incumbent does not commercialize the acquired start-up's technology) and acquisitions with commercialization. A restrictive …

This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability … firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm … appropriable, then a merger increases consumer welfare by reducing investment in the most profitable project and increasing …

prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other … acquisitions only has a weakly negative innovation effect, and we provide conditions under which the effect is zero. Furthermore …, for both killer and other acquisitions, we identify market conditions under which the innovation effect is small, so that …

acquisitions (M&As) and corporate innovation. It also identifies relevant policies implemented by countries around the world to …This paper provides both theoretical perspectives and empirical evidence on the relationship between mergers and … encourage corporate innovation activities, and discusses the experience from which policy makers and practitioners in Asia could …

's bargaining power is below a threshold. Allowing for acquisitions may improve the direction of innovation of each of the players …. Allowing for acquisitions distorts both players' incentives to allocate funding across their rival and non-rival projects. We … rival market. We show that this strategic effect dominates the usual "innovation for buyout effect" when the entrant …

Pharmaceutical firms spend increasing amounts in mergers and acquisitions (M&As), which raises the question of whether … sufficient investment is left after mergers to further develop firms' internal drug development capability. We evaluate the … effects of M&As on firms' post-merger R&D investments and drug development capabilities across drug development phases. This …

This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability … firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm … appropriable, then a merger increases consumer welfare by reducing investment in the most profitable project and increasing …

This paper studies mergers in markets where firms invest in a portfolio of research projects of different profitability … firms because it lowers the probability they win the innovation contest for that project; however, the investment of a firm …

We propose and empirically examine cross-border mergers and acquisitions (M&As) as an important dimension of firms …' innovation strategies. Our empirical analyses, based on a sample of 85,591 M&A deals from 57 countries, show that innovative … firms in low innovation countries are more likely to undertake cross-border deals, and select innovative targets when doing …