Merger policy in R&D intensive industries
- Faulí Oller, Ramon
- Pastor Gonsalez, Maite
Año de publicación: 2001
Número: 12
Tipo: Documento de Trabajo
Resumen
We analyze merger policy in an industry where firms participate in a non-tournament R&D competition. We conclude that merger policy should be, in general, less restrictive in high technology markets (pharmaceuticals and telecoms), because mergers reduce the wasteful duplication of R&D expenditures. However, merger policy should become more strict in (very) asymmetric market structures. In this case, competition provides incentives for R&D, but, at the same time, duplication is avoided.