Acquisition of innovative firms is a widely observed phenomenon in high-tech industries. On the basis of distinct advantages of large and small firms, in this paper, we build a tournament model with possible acquisition activity of large firms to derive hypotheses on interdependencies between...

Both mergers and innovation are central elements of a firm's competitive strategy. However, model-theoretical analysis of the merger-innovation link is sparse. The aim of this paper is to analyze the impact of mergers on innovative activities and product market competition in the context of...