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16 avril 2024
- handle: 10670/1.9g76q5
- hal: hal-04548184
info:eu-repo/semantics/OpenAccess
Mots-clés
Horizontal Mergers Innovation CompetitionSujets proches
Businesses Firms Companies Enterprises Business organizations Organizations, BusinessCiter ce document
Marc Bourreau et al., « Mergers and demand-enhancing innovation », HAL-SHS : économie et finance, ID : 10670/1.9g76q5
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Résumé
We study the impact of horizontal mergers on merging firms’ incentives to invest in demand-enhancing innovation. In our baseline model, we identify four effects of a symmetric merger on these incentives: the innovation diversion effect, the margin expansion effect, the demand expansion effect, and the per unit return to innovation effect. We offer succient conditions for a merger to reduce or raise merging firms’ incentives to innovate in the absence of spillovers and effciency gains in R&D, and find that a comparison between the innovation diversion and price diversion ratios is informative about the impact of a merger on innovation.