Resource complementarity and value capture in firm acquisitions: the role of intellectual property rights
(2014) In Strategic Management Journal 35(12). p.1762-1780- Abstract
- Extant literature holds that firm acquisitions create value through innovation if the knowledge bases of the acquirer and the target complement each other. Little is known about the value that patents associated with a target's knowledge convey to the acquirer, i.e., their value in securing market exclusion and freedom to operate in R&D. We argue that such property rights hold preemptive power allowing firms to capture the value from combining complementary technologies and to realize gains from trade in strategic factor markets. Our results for a sample of 1,428 acquisitions indicate that-controlling for technological value-acquired preemptive power is an important determinant of the acquisition price, particularly when the acquirer... (More)
- Extant literature holds that firm acquisitions create value through innovation if the knowledge bases of the acquirer and the target complement each other. Little is known about the value that patents associated with a target's knowledge convey to the acquirer, i.e., their value in securing market exclusion and freedom to operate in R&D. We argue that such property rights hold preemptive power allowing firms to capture the value from combining complementary technologies and to realize gains from trade in strategic factor markets. Our results for a sample of 1,428 acquisitions indicate that-controlling for technological value-acquired preemptive power is an important determinant of the acquisition price, particularly when the acquirer is technology intensive and acquired patents are highly related to the acquirer's knowledge base. Copyright (C) 2013 John Wiley & Sons, Ltd. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/4874955
- author
- Grimpe, Christoph LU and Hussinger, Katrin
- organization
- publishing date
- 2014
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- technology acquisitions, intellectual property rights, value creation, value capture, resource complementarity
- in
- Strategic Management Journal
- volume
- 35
- issue
- 12
- pages
- 1762 - 1780
- publisher
- John Wiley & Sons Inc.
- external identifiers
-
- wos:000344327400003
- scopus:84911366461
- ISSN
- 0143-2095
- DOI
- 10.1002/smj.2181
- language
- English
- LU publication?
- yes
- id
- 75ea3bd7-271a-42fd-a048-e2fe27ebe354 (old id 4874955)
- date added to LUP
- 2016-04-01 13:19:24
- date last changed
- 2022-03-29 06:52:01
@article{75ea3bd7-271a-42fd-a048-e2fe27ebe354,
abstract = {{Extant literature holds that firm acquisitions create value through innovation if the knowledge bases of the acquirer and the target complement each other. Little is known about the value that patents associated with a target's knowledge convey to the acquirer, i.e., their value in securing market exclusion and freedom to operate in R&D. We argue that such property rights hold preemptive power allowing firms to capture the value from combining complementary technologies and to realize gains from trade in strategic factor markets. Our results for a sample of 1,428 acquisitions indicate that-controlling for technological value-acquired preemptive power is an important determinant of the acquisition price, particularly when the acquirer is technology intensive and acquired patents are highly related to the acquirer's knowledge base. Copyright (C) 2013 John Wiley & Sons, Ltd.}},
author = {{Grimpe, Christoph and Hussinger, Katrin}},
issn = {{0143-2095}},
keywords = {{technology acquisitions; intellectual property rights; value creation; value capture; resource complementarity}},
language = {{eng}},
number = {{12}},
pages = {{1762--1780}},
publisher = {{John Wiley & Sons Inc.}},
series = {{Strategic Management Journal}},
title = {{Resource complementarity and value capture in firm acquisitions: the role of intellectual property rights}},
url = {{http://dx.doi.org/10.1002/smj.2181}},
doi = {{10.1002/smj.2181}},
volume = {{35}},
year = {{2014}},
}