KILLER ACQUISITIONS AND BEYOND: POLICY EFFECTS ON INNOVATION STRATEGIES

• 成果类型: Article
• 署名作者: Letina, Igor; Schmutzler, Armin; Seibel, Regina
• 署名单位: University of Bern; Centre for Economic Policy Research - UK; University of Zurich; University of Toronto
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12689
• 发表日期: 2024
• 页码: 591-622
• 关键词: research-and-development; market-structure; COMPETITION; mergers; incentives; ANTITRUST; persistence; entry; MODEL; gale

摘要

This article provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a foundation for the analysis of acquisition policy. We show that, in spite of countervailing incentives on incumbents and entrants, prohibiting acquisitions has a weakly negative overall innovation effect. We provide conditions determining the size of the effect and conditions under which it is zero. We further analyze the effects of less restrictive policies, including merger remedies and the tax treatment of acquisitions and initial public offerings. Such interventions tend to prevent acquisitions only if the entrant has sufficiently high stand-alone profits.