IDEAS home Printed from https://ideas.repec.org/a/sbr/abstra/v58y2006i2p157-179.html
   My bibliography  Save this article

Mergers in Patent Contest Models with Synergies and Spillovers

Author

Listed:
  • Peter-J. Jost
  • Claus van der Velden

Abstract

We consider mergers in an innovation contest between n firms in the presence of synergetic effects. We assume that a merger may affect the R&D efficiency of the merging firm due to increasing returns to scale in R&D. We show that mergers are beneficial for the merging firms even if the efficiency gains of the merging firms are not substantial, and that merging reduces R&D costs by only 6%. We also consider the influence of unintended knowledge flows in R&D. In the presence of knowledge spillovers, we show that higher efficiency gains are needed to make the merger profitable.

Suggested Citation

  • Peter-J. Jost & Claus van der Velden, 2006. "Mergers in Patent Contest Models with Synergies and Spillovers," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 58(2), pages 157-179, April.
    • Handle: RePEc:sbr:abstra:v:58:y:2006:i:2:p:157-179
    as

    Download full text from publisher

    File URL: http://www.vhb.de/sbr/pdfarchive.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jost, Peter-J. & van der Velden, Claus, 2008. "Organizational design of R&D after mergers and the role of budget responsibility," Journal of Economics and Business, Elsevier, vol. 60(5), pages 469-484.
    2. Jost, Peter-J., 2011. "Joint ventures in patent contests with spillovers and the role of strategic budgeting," Journal of Economics and Business, Elsevier, vol. 63(6), pages 605-637.
    3. Robin Kleer, 2008. "Acquisitions in a Patent Contest Model with Large and Small Firms," Working Papers 061, Bavarian Graduate Program in Economics (BGPE).
    4. Gamal Atallah, 2016. "Endogenous Efficiency Gains from Mergers," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 202-235, July.
    5. Robin Kleer, 2009. "Acquisitions in a Patent Contest Model with Large and Small Firms," Journal of Industry, Competition and Trade, Springer, vol. 9(4), pages 307-328, December.
    6. Rockett, Katharine, 2012. "Perspectives on the knowledge-based society: An introduction to the special issue," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-22.

    More about this item

    Keywords

    Contest; Merger; Spillover; Synergies;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:58:y:2006:i:2:p:157-179. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: sbr (email available below). General contact details of provider: https://edirc.repec.org/data/fbmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.