This paper investigates the motive of pre-empting technology competition through mergers and acquisitions (M&A). Exploiting the patent application procedure at the European Patent Office we introduce a new measure for the possibility to create entry barriers in technology markets. Our results show significant evidence that firms engage in horizontal M&A to pre-empt competition in technology markets.
Grimpe, Christoph und Katrin Hussinger (2007), Pre-empting Technology Competition Through Firm Acquisitions, ZEW Discussion Paper No. 07-027, Mannheim, erschienen in: Economic Letters. Download