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Pre-empting Technology Competition Through Firm Acquisitions

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  • Grimpe, Christoph
  • Hussinger, Katrin

Abstract

This paper investigates the motive of pre-empting technology competition through mergers and acquisitions (M&A). Exploiting the patent application procedure at the European Patent Office we introduce a new measure for the possibility to create entry barriers in technology markets. Our results show significant evidence that firms engage in horizontal M&A to pre-empt competition in technology markets.

Suggested Citation

  • Grimpe, Christoph & Hussinger, Katrin, 2007. "Pre-empting Technology Competition Through Firm Acquisitions," ZEW Discussion Papers 07-027, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5590
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    References listed on IDEAS

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    1. Joshua S. Gans & Scott Stern, 2000. "Incumbency and R&D Incentives: Licensing the Gale of Creative Destruction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(4), pages 485-511, December.
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    6. Colin Webb & Hélène Dernis & Dietmar Harhoff & Karin Hoisl, 2005. "Analysing European and International Patent Citations: A Set of EPO Patent Database Building Blocks," OECD Science, Technology and Industry Working Papers 2005/9, OECD Publishing.
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    More about this item

    Keywords

    pre-empting technology competition; mergers and acquisitions;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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