Released: V.10, N1

O. Bertrand. Impact of International M&A on R&D Activities: Some Evidence at Industry and Firm Level

V.6, N4, 2008

This paper investigates the incidence of cross-border mergers and acquisitions (M&A) on the research and development (R&D) activities of companies. Using different indicators of R&D activity of target firms over the period 1994–2004, we get the following results. Cross-border acquisitions seem to bring positive long-run effects on the volume and nature of R&D projects. In addition, we see that foreign partners finance more the R&D activity of the target firm after its acquisition. R&D is also more contracted out to local public laboratories and universities. General findings tend to cast some doubt on the usual fears regarding foreign takeovers and their impact on local R&D activity.