Acquisition through innovation tournaments in high-tech industries: A comparative perspective
Publication type
Journal articlePublication Year
2013Journal
Economics of Innovation and New TechnologyPublication Volume
22Publication Issue
1Publication Begin page
73Publication End page
97
Metadata
Show full item recordAbstract
Acquisition of innovative firms is a widely observed phenomenon in high-tech industries. On the basis of distinct advantages of large and small firms, in this paper, we build a tournament model with possible acquisition activity of large firms to derive hypotheses on interdependencies between acquisition frequency and post-acquisition success rates. We find empirical support for our hypotheses that (1) acquisitions increase overall innovation output and (2) that the number of acquisitions is higher in industries with larger heterogeneity between established firms and young start-ups. However, our third hypothesis derived from the formal model that innovation success following from acquisitions varies across industries is only partially confirmed.Knowledge Domain/Industry
Innovation Managementae974a485f413a2113503eed53cd6c53
10.1080/10438599.2012.703487