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Determinants of the acquisition of smaller firms by larger incumbents in high-tech industries: Are they related to innovation and technology sourcing?

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  • Wagner, Marcus

Abstract

Innovation activities in high tech industries provide considerable challenges for technology and innovation management. In particular, firms frequently face significant technological challenges since these industries has a long history of radical innovations which are taking place through distinct industry cycles of higher and lower demand. The paper investigates these issues for three high-tech industries, namely semiconductor manufacturing, biotechnology and electronic design automation which is a specific sub-segment of the semiconductor industry. It analyses the association of firm characteristics with different aspects of acquisition behaviour. Particular focus is put on innovation-related firm characteristics. The paper finds that the determinants for acquisitions are mostly related to firm size, financial conditions and geographical origin of the firm. Only for biotechnology, a substitutive relationship is identified between acquisitions and own research activities.

Suggested Citation

  • Wagner, Marcus, 2007. "Determinants of the acquisition of smaller firms by larger incumbents in high-tech industries: Are they related to innovation and technology sourcing?," SFB 649 Discussion Papers 2007-063, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2007-063
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    References listed on IDEAS

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    More about this item

    Keywords

    acquisition; innovation; semiconductor; design; automation; biotechnology;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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    1. Socio-Economics of Innovation

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