Mergers and innovation: Evidence from the hard disk drive market
journal contributionposted on 2021-07-02, 08:30 authored by Anna Rita BennatoAnna Rita Bennato, Stephen Davies, Franco Mariuzzo, Peter Ormosi
This paper is a retrospective evaluation of how innovation changed following mergers and subsequent policy interventions after the 5-to-3 consolidation of the worldwide hard disk drive industry in 2012. It adopts a holistic view of innovation, employing four different measures: R&D, patents, the number of new models, and their unit prices. This allows us to distinguish the magnitude of the merging parties innovative efforts from the productivity of those efforts. Our firm-level approach confirms that there is important heterogeneity across the players, which we attribute to differences in the severity of remedies required by competition authorities.
- Business and Economics
Published inInternational Journal of Industrial Organization
- AM (Accepted Manuscript)
Rights holder© Elsevier
Publisher statementThis paper was accepted for publication in the journal International Journal of Industrial Organization and the definitive published version is available at https://doi.org/10.1016/j.ijindorg.2021.102755