Journal of Industry, Competition and Trade

, Volume 6, Issue 1, pp 5–25

How Do Innovations Affect Mergers and Acquisitions—Evidence from Finland?


DOI: 10.1007/s10842-005-5647-z

Cite this article as:
Lehto, E. & Lehtoranta, O. J Ind Compet Trade (2006) 6: 5. doi:10.1007/s10842-005-5647-z


We have analysed whether innovations in a firm's possession increase a firm's propensity to buy other firms and, on the other hand, whether this possession attracts other firms so that they buy the firm concerned. Our results suggest that in the heavily investing processing industries high entry costs and the incumbency of all the firms make more efficient firms—the possessors of innovations—acquire inefficient firms. On the other hand, in the non-processing industries innovators become, according to our findings, easily purchased by the other firms whose strength obviously lies in other areas than in innovative activity.



Copyright information

© Springer Science + Business Media, Inc. 2006

Authors and Affiliations

  1. 1.Labour Institute for Economic ResearchHelsinkiFinland
  2. 2.Statistics FinlandHelsinkiFinland