IDEAS home Printed from https://ideas.repec.org/a/spr/scient/v59y2004i1d10.1023_bscie.0000013304.40957.0d.html
   My bibliography  Save this article

Impact of mergers & acquisitions on research productivity within the pharmaceutical industry

Author

Listed:
  • Michael E. D. Koenig

    (College of Information & Computer Science, Long Island University Brookville)

  • Elizabeth M. Mezick

    (Long Island University)

Abstract

Several major econometric studies have looked at mergers and acquisitions (M&As) across various industries and concluded that, in general, there is no synergy created or released by M&A activity. This investigation concentrates upon research and development (R&D) performance in the pharmaceutical industry to examine the impact of M&A activity on corporate productivity. Findings indicate that, when compared to those companies within the pharmaceutical industry that did not experience merger activity during comparable time periods, as well as to the industry as a whole, pharmaceutical companies that merged were able to achieve more favorable post-merger productivity scores than were attained prior to their merger.

Suggested Citation

  • Michael E. D. Koenig & Elizabeth M. Mezick, 2004. "Impact of mergers & acquisitions on research productivity within the pharmaceutical industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 59(1), pages 157-169, January.
    • Handle: RePEc:spr:scient:v:59:y:2004:i:1:d:10.1023_b:scie.0000013304.40957.0d
    DOI: 10.1023/B:SCIE.0000013304.40957.0d
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1023/B:SCIE.0000013304.40957.0d
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1023/B:SCIE.0000013304.40957.0d?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jensen, Elizabeth J, 1987. "Research Expenditures and the Discovery of New Drugs," Journal of Industrial Economics, Wiley Blackwell, vol. 36(1), pages 83-95, September.
    2. Koenig, Michael E. D., 1983. "A bibliometric analysis of pharmaceutical research," Research Policy, Elsevier, vol. 12(1), pages 15-36, February.
    3. Mitchell, Mark L & Lehn, Kenneth, 1990. "Do Bad Bidders Become Good Targets?," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 372-398, April.
    4. Koenig, M. E. D. & Gans, D. J., 1975. "The productivity of research effort in the US pharmaceutical industry: a statistical approach," Research Policy, Elsevier, vol. 4(4), pages 330-349, October.
    5. Vernon, John M & Gusen, Peter, 1974. "Technical Change and Firm Size: The Pharmaceutical Industry," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 294-302, August.
    6. Narin, Francis & Noma, Elliot & Perry, Ross, 1987. "Patents as indicators of corporate technological strength," Research Policy, Elsevier, vol. 16(2-4), pages 143-155, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Unsal, Omer & Rayfield, Blake, 2019. "Institutional investors and medical innovation," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 190-205.
    2. Elisa Barbieri & Manli Huang & Shenglei Pi & Mattia Tassinari, 2017. "Restructuring the Production of Medicines: An Investigation on the Pharmaceutical Sector in China and the Role of Mergers and Acquisitions," IJERPH, MDPI, vol. 14(10), pages 1-21, October.
    3. Ming-Chao Huang & Shih-Chieh Fang & Shao-Chi Chang, 2011. "Tracking R&D behavior: bibliometric analysis of drug patents in the Orange Book," Scientometrics, Springer;Akadémiai Kiadó, vol. 88(3), pages 805-818, September.
    4. Torsten Gerpott, 2009. "Forschung & Entwicklung und technologieorientierte Unternehmensakquisitionen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 20(1), pages 9-41, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yu-Shan Chen & Ke-Chiun Chang, 2009. "Using neural network to analyze the influence of the patent performance upon the market value of the US pharmaceutical companies," Scientometrics, Springer;Akadémiai Kiadó, vol. 80(3), pages 637-655, September.
    2. Joseph Dimasi & Henry Grabowski & John Vernon, 1995. "R&D Costs, Innovative Output and Firm Size in the Pharmaceutical Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 2(2), pages 201-219.
    3. Sangjoon Lee & Jinyoung Kim, 2004. "Research Scientist Productivity and Firm Size: Evidence from Panel Data on Inventors," Econometric Society 2004 Far Eastern Meetings 465, Econometric Society.
    4. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    5. Dar-Zen Chen & Wen-Yau Cathy Lin & Mu-Hsuan Huang, 2007. "Using Essential Patent Index and Essential Technological Strength to evaluate industrial technological innovation competitiveness," Scientometrics, Springer;Akadémiai Kiadó, vol. 71(1), pages 101-116, April.
    6. Zhang, Sifei & Yuan, Chien-Chung & Chang, Ke-Chiun & Ken, Yun, 2012. "Exploring the nonlinear effects of patent H index, patent citations, and essential technological strength on corporate performance by using artificial neural network," Journal of Informetrics, Elsevier, vol. 6(4), pages 485-495.
    7. Rebecca Henderson & Iain Cockburn, 1993. "Scale, Scope and Spillovers: The Determinants of Research Productivity in the Pharmaceutical Industry," NBER Working Papers 4466, National Bureau of Economic Research, Inc.
    8. Henderson, Rebecca. & Cockburn, Iain., 1993. "Scale, scope and spillovers : the determinants of research productivity in ethical drug discovery," Working papers 3629-93., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    9. Cockburn, Iain M. & Henderson, Rebecca M., 2001. "Scale and scope in drug development: unpacking the advantages of size in pharmaceutical research," Journal of Health Economics, Elsevier, vol. 20(6), pages 1033-1057, November.
    10. Burak Dindaroglu, 2011. "R&D Productivity and Firm Size in Semiconductors and Pharmaceuticals: Evidence from Citation Yields," Working Papers 1101, Izmir University of Economics.
    11. Rotolo, Daniele & Camerani, Roberto & Grassano, Nicola & Martin, Ben R., 2022. "Why do firms publish? A systematic literature review and a conceptual framework," Research Policy, Elsevier, vol. 51(10).
    12. Frietsch, Rainer & Neuhäusler, Peter & Rothengatter, Oliver, 2012. "Patent Applications – Structures, Trends and Recent Developments," Studien zum deutschen Innovationssystem 8-2012, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    13. Guan-Can Yang & Gang Li & Chun-Ya Li & Yun-Hua Zhao & Jing Zhang & Tong Liu & Dar-Zen Chen & Mu-Hsuan Huang, 2015. "Using the comprehensive patent citation network (CPC) to evaluate patent value," Scientometrics, Springer;Akadémiai Kiadó, vol. 105(3), pages 1319-1346, December.
    14. Rajeeva Sinha, 2004. "The role of hostile takeovers in corporate governance," Applied Financial Economics, Taylor & Francis Journals, vol. 14(18), pages 1291-1305.
    15. Jun Hong Park & Sang Ho Kook & Hyeonu Im & Soomin Eum & Chulung Lee, 2018. "Fabless Semiconductor Firms’ Financial Performance Determinant Factors: Product Platform Efficiency and Technological Capability," Sustainability, MDPI, vol. 10(10), pages 1-22, September.
    16. Lorenz, Steffi, 2015. "Diversität und Verbundenheit der unternehmerischen Wissensbasis: Ein neuartiger Messansatz mit Indikatoren aus Innovationsprojekten," Discussion Papers on Strategy and Innovation 15-01, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    17. Sudi Sudarsanam & Ashraf A. Mahate, 2003. "Glamour Acquirers, Method of Payment and Post‐acquisition Performance: The UK Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1‐2), pages 299-342, January.
    18. Lee, Changyong & Cho, Yangrae & Seol, Hyeonju & Park, Yongtae, 2012. "A stochastic patent citation analysis approach to assessing future technological impacts," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 16-29.
    19. Yu-Shan Chen & Ke-Chiun Chang, 2010. "The nonlinear nature of the relationships between the patent traits and corporate performance," Scientometrics, Springer;Akadémiai Kiadó, vol. 82(1), pages 201-210, January.
    20. To, Thomas & Wu, Eliza & Zhao, Diya, 2024. "Global board reforms and corporate acquisition performance," Journal of Corporate Finance, Elsevier, vol. 87(C).

    More about this item

    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:spr:scient:v:59:y:2004:i:1:d:10.1023_b:scie.0000013304.40957.0d. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.