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European market integration through technology-driven M&As

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  • Rainer Frey
  • Katrin Hussinger

Abstract

Merger and Acquisitions (M&As) have been an important tool for reorganizing the European market since the establishment of European Economic and Monetary Union. This article suggests that European integration helped and encouraged European firms to source technology across national borders in Europe, establishing European innovative firms. The figures confirm that, once barriers impeding the free movement of capital, goods and labour had fallen, European firms used M&As intensively to enter foreign European markets. Enhancing technology competencies is found to be one of the main motives for cross-border acquisitions in the 1990s but is not a factor in domestic acquisitions over the same period.

Suggested Citation

  • Rainer Frey & Katrin Hussinger, 2011. "European market integration through technology-driven M&As," Applied Economics, Taylor & Francis Journals, vol. 43(17), pages 2143-2153.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2143-2153
    DOI: 10.1080/00036840903153796
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    References listed on IDEAS

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    Cited by:

    1. Hatemi-J, Abdulnasser, 2012. "Is the UAE stock market integrated with the USA stock market? New evidence from asymmetric causality testing," Research in International Business and Finance, Elsevier, vol. 26(2), pages 273-280.
    2. Hsu, Po-Hsuan & Huang, Peng & Humphery-Jenner, Mark & Powell, Ronan, 2021. "Cross-border mergers and acquisitions for innovation," Journal of International Money and Finance, Elsevier, vol. 112(C).
    3. Victoria Shestalova & Chiara Criscuolo & Nick Johnstone & Carlo Menon, 2014. "Renewable energy policies and cross-border investment: evidence from M&A in solar and wind energy," CPB Discussion Paper 288, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Stiebale, Joel, 2013. "The impact of cross-border mergers and acquisitions on the acquirers' R&D — Firm-level evidence," International Journal of Industrial Organization, Elsevier, vol. 31(4), pages 307-321.
    5. Hatemi-J, Abdulnasser & Mustafa, Alan, 2016. "Testing for Financial Market Integration of the Chinese Market with the US Market," MPRA Paper 72733, University Library of Munich, Germany.
    6. Victoria Shestalova & Chiara Criscuolo & Nick Johnstone & Carlo Menon, 2014. "Renewable energy policies and cross-border investment: evidence from M&A in solar and wind energy," CPB Discussion Paper 288.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Burger, Anže & Hogan, Teresa & Kotnik, Patricia & Rao, Sandeep & Sakinç, Mustafa Erdem, 2023. "Does acquisition lead to the growth of high-tech scale-ups? Evidence from Europe," Research in International Business and Finance, Elsevier, vol. 64(C).
    8. Wei Wang & Haofei Wang & Xueqin Wang, 2024. "Simulation and prediction of the dynamic evolution characteristics of resource- and technology-driven economic development models: a case study of the Yangtze River economic belt in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17967-17993, July.
    9. Haucap, Justus & Rasch, Alexander & Stiebale, Joel, 2019. "How mergers affect innovation: Theory and evidence," International Journal of Industrial Organization, Elsevier, vol. 63(C), pages 283-325.
    10. Umber, Marc P. & Grote, Michael H. & Frey, Rainer, 2014. "Same as it ever was? Europe's national borders and the market for corporate control," Journal of International Money and Finance, Elsevier, vol. 40(C), pages 109-127.

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