Beyond knowledge bases: towards a better understanding of the effects of M&A on technological performance

This paper deals with the impact of M&A on technological performance. We argue that, when it provides additional technological resources, M&A promote the creation of more value in the innovation process. Instead, when it allows the redeployment of complementary assets, M&A enable more value to be captured from the innovations, and hence foster firms’ incentives in the innovation process. Hypotheses are tested on a sample of deals that were completed in the U.S. “Medical devices and photographic equipment” sector, in the period1988-1996