3. Evolution of markets, technology and M&A John Cantwell and Grazia D. Santangelo 3.1 INTRODUCTION As described in Chapter 2, the late 1990s witnessed a major merger and acquisition (M&A) wave in terms of both the value of the deals and the number of cross-border M&A. The magnitude of this phenomenon has raised questions related to why M&A occur and how M&A have aﬀected the outcome of corporate research and development (R&D) in terms of technological performance and R&D productivity. Although M&A appear to occur to diﬀerent extents across diﬀerent sectors, in this chapter we argue that the boom in M&A is a general phenomenon generated by new global conditions. The factors generating such conditions are classiﬁed as trends linked to the transformation of markets (e.g. the ﬂourishing of regulatory shifts) and technology (i.e. the emergence of new business and market opportunities, the rise of technological interrelatedness, and the establishment of new communications and cross-border restructuring). Therefore, it is held that M&A can be understood as a corporate strategy at an international as well as a national and sub-national level to better cope with these new global conditions. The impact of these trends in encouraging new partnerships can be related to both the non-innovation and innovation related motives for M&A deals respectively. However, as it will be argued in the following chapters of this book, the impact of M&A on the outcome of corporate...
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