We investigate how M&A activities are used to allocate R&D resources within firm boundaries. We find that Chinese listed firms exhibit strong intra-firm R&D reallocation behaviors following M&A activities from 2007 to 2017. Specifically, they shift innovation activities to subsidiary firms. The...

Big companies and small innovation factories possess different advantages in a patent contest. While large firms typically have a better access to product markets, small firms often have a superior R&D efficiency. In this paper I model a patent contest with asymmetric firms. In a pre-contest...