5. M&A and innovation: a conceptual framework Bruno Cassiman and Masako Ueda 5.1 INTRODUCTION The major conclusion from the existing studies discussed in Chapter 4 is that any results on the relation between mergers and acquisitions (M&A) and the innovation process are weak and/or diﬃcult to generalize. In this chapter we will carefully formulate the possible eﬀects of M&A on the innovation process in a conceptual framework. The contribution of the chapter is to link each of these hypotheses with speciﬁc consequences for the research and development (R&D) process and organization. Interestingly, we ﬁnd that the same M&A can have important conﬂicting eﬀects on innovation and, therefore, it is not surprising to ﬁnd these inconclusive results. Chapter 6, then, presents our empirical model, where we condition the M&A along diﬀerent dimensions, and in Chapters 7 and 8 we demonstrate that these dimensions are indeed relevant for actually understanding the eﬀect of M&A on innovation. Elucidating these key dimensions for gauging the impact of M&A on innovation is, hence, the true contribution of our overall study. 5.2 M&A AND THE INNOVATION PROCESS 5.2.1 Eﬀect of M&A on R&D/Innovation Process and Production Process In Figure 5.1 below, we summarize the basic theoretical framework for this study. While the trends discussed in Chapters 2 and 3 can aﬀect the motivation for M&A, the fundamental link we wish to study is the direct...
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