This study examines the effects of technological mergers and acquisitions (M&A) on post-deal innovation and firm performance. We argue that technological M&A lead to an increase of the innovation output in terms of patent counts while non-technological deals do not. By using the novel matching...

Firms often choose to grow and diversify via mergers and acquisitions (M&A) because acquiring and integrating an ongoing entity is perceived to be a fast and less risky means of entering desirable markets, gaining new knowledge and new capabilities, or adding to the firm’s product line. In...