REACHING BEYOND THE ACQUIRER-TARGET DYAD IN M&A – LINKAGES TO EXTERNAL KNOWLEDGE SOURCES AND TARGET FIRM VALUATION

E-print/Working paper (2023)

Resource Complementarity and Value Capture in Firm Acquisitions: The Role of Intellectual Property Rights

in Strategic Management Journal (2014)

Extant literature holds that firm acquisitions create value through innovation if the knowledge bases of the acquirer and the target complement each other. Little is known about the value that patents ... [more ▼]

Extant literature holds that firm acquisitions create value through innovation if the knowledge bases of the acquirer and the target complement each other. Little is known about the value that patents associated with a target’s knowledge convey to the acquirer, i.e., their value in securing market exclusion and freedom to operate in R&D. We argue that such property rights hold preemptive power allowing firms to capture the value from combining complementary technologies and to realize gains from trade in strategic factor markets. Our results for a sample of 1,428 acquisitions indicate that—controlling for technological value—acquired preemptive power is an important determinant of the acquisition price, particularly when the acquirer is technology intensive and acquired patents are highly related to the acquirer’s knowledge base. [less ▲]

Formal and Informal Technology Transfer from Academia to Industry: Complementarity Effects and Innovation Performance

in Industry and Innovation (2013)

Formal and Informal Technology Transfer from Academia to Industry: Complementarity Effects and Innovation Performance

in Industry and Innovation (2013)

Pre-empting Technology Competition through Firm Acquisition

in Economics Letters (2008)

This paper shows that firms engage in horizontal mergers and acquisitions to pre-empt competition in technology markets. Making use of the patent application procedure at the European Patent Office we ... [more ▼]

This paper shows that firms engage in horizontal mergers and acquisitions to pre-empt competition in technology markets. Making use of the patent application procedure at the European Patent Office we introduce a measure for potential entry barriers in technology markets. [less ▲]