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The impact of cross-border mergers and acquisitions on European companies’ innovation outcomes

Alves Martins, Andre Filipe (2018) The impact of cross-border mergers and acquisitions on European companies’ innovation outcomes. Masters thesis, Dublin, National College of Ireland.

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Abstract

Background
Globalization has changed the competitive environment where companies develop their businesses. The need of competing in a global scale has been challenging them to be more innovative to adapt themselves to this new reality, attract the attention of its consumers and generate growth. Cross-border mergers and acquisitions and innovation have been key factors for companies to be competitive and different studies have analysed the relationship between them along the time.
Knowing that M&A activity is cyclical and is deeply dependent on economic expansion, regulatory changes and new technologies development (Cretin et al, 2015), this study aims to explore the relationship of cross-border mergers and acquisitions and companies’ innovation outcomes in Europe between 2008 and 2017, period after the global financial crisis.

Methods
The present research was a cross sectional study to examine how the two considered variables - number of cross-border M&A and number of patents applications - measured in the same period of time (between 2008 and 2017) are associated to each other in four different European countries: United Kingdom, Germany, Austria and Switzerland.
The data was collected from reports published by the Institute for Mergers, Acquisitions and Alliances (IMAA) and the European Patent Office.

Results
The results show that a correlation between the number of M&A and the number of patents applications can be identified in most of the studied countries in the period between 2008 and 2017. It is possible to identify a positive correlation between the number of cross-border M&A and the number of patents applications in United Kingdom. However, in Germany and Switzerland, the results show a negative correlation between variables.

Discussion
The results confirm previous empirical studies that revealed a existing correlation between cross-border M&A and companies’ innovation. However, the impact of cross border M&A can differ across different countries in Europe: in United Kingdom cross-border M&A have a positive impact on the number of companies’ patents applications, while in Germany and Switzerland this impact is negative. Finally, this study also identified the case of Austria, where there is a null impact. Yet, further studies need to be undertaken in order to confirm the statistical relevance of the analysis in all cases.

Item Type: Thesis (Masters)
Subjects: T Technology > T Technology (General) > T201 Patents. Trademarks
H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Consolidation and Merger of Corporations
H Social Sciences > HB Economic Theory > Entrepreneurship
Divisions: School of Business > Master of Science in International Business
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 30 Oct 2018 16:09
Last Modified: 30 Oct 2018 16:09
URI: http://trap.ncirl.ie/id/eprint/3362

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