Trade and growth theories predict a mutual causation of innovation and exports. We test empirically whether innovation … exogenous to firms export performance. We find that innovation attributable to this variation leads to an increase of roughly 7 …

their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to … reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of … the "inverted-U" relationship between innovation and competition to a merger setting. …