Abstract
There were a large number of US drug company takeovers in the 1990s by both foreign and domestic acquirers. Observation of the absolute difference between target and acquirer R&D intensity suggests there is no difference between foreign and domestic technology-sourcing patterns. However, a firm-level estimation of the acquirers' choice of targets reveals that foreign and domestic acquirers differ with respect to the relationship between target and acquirer R&D intensity. Foreign acquirers with low R&D intensity choose targets with high R&D intensities, which suggests technology sourcing as a motivation. Domestic acquirers prefer targets with high R&D intensities the higher their own R&D intensity, which suggests a synergy story.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
