8. The impact of M&A on innovation: empirical results Massimo G. Colombo and Paola Garrone 8.1 INTRODUCTION This chapter analyses the eﬀects of mergers and acquisitions (M&A) on the research and development (R&D) process. We pay special attention to the role played by technology and market relatedness of the combining ﬁrms, but we are interested in exploring the role of other M&A characteristics as well. Before reporting the key ﬁndings of our analysis, we brieﬂy illustrate the empirical methodology. The diﬀerence in the value of R&D indicators across diﬀerent M&A classes (e.g. rival versus non-rival ﬁrms) is tested through univariate statistics. The variables submitted to statistical tests include both traditional R&D indicators and new R&D constructs; the latter are drawn from a dataset that codiﬁes the interviewees’ responses on the innovation process in the merging ﬁrms. First, we will consider a limited selection of traditional indicators. They capture changes in merging ﬁrms’ R&D inputs and performance that are, according to the interviewed managers, directly attributable to the completion of the deal. Answers in the questionnaire concerning such aspects were codiﬁed as ordered categorical variables and so they can be used in statistical analyses. Use of such traditional indicators makes it easier to compare our results with those of previous studies. Secondly, as was mentioned in previous chapters, the questionnaire comprises a large number of speciﬁc questions relating to changes in R&D inputs, outputs,...
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