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The Impacts of M&As on R&D investments

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  • Eero Lehto

Abstract

This study considers the impact of M&As on a firm’s R&D investments. We have analysed the impacts of the incidences in which a firm becomes a target and, on the other hand, an acquirer. M&As are classified in our study as being either domestic or cross-border. In addition, domestic M&As are classified – if needed – according to geographical and technological proximity. The results obtained show that M&As tend to increase acquirers’ R&D investments, and decrease targets’ R&D investments or keep them unchanged. The clearest positive effect is related to the incidence in which a Finnish firm buys a foreign firm. On the other hand, when a foreign firm buys a Finnish firm, the impact is zero.

Suggested Citation

  • Eero Lehto, 2007. "The Impacts of M&As on R&D investments," Working Papers 232, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:232
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    References listed on IDEAS

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    More about this item

    Keywords

    M&As; R&D investments;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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