Inter-firm Inventor Collaboration and Path-breaking Innovation: Evidence from Inventor Teams Post-merger

58 Pages Posted: 10 Apr 2020 Last revised: 26 May 2021

See all articles by Kai Li

Kai Li

University of British Columbia (UBC) - Sauder School of Business; Asian Bureau of Finance and Economic Research (ABFER); China Academy of Financial Research (CAFR); European Corporate Governance Institute (ECGI); Canadian Sustainable Finance Network (CSFN)

Jin Wang

Wilfrid Laurier University - Lazaridis School of Business & Economics

Date Written: May 26, 2021

Abstract

Using a large and unique data set tracking inventors’ career paths following mergers and acquisitions over the period 1981-2012, we show that collaboration between acquirer and target inventors post-merger is associated with more path-breaking patents than those filed by either acquirer or target inventor-only teams. We further show that such collaboration is more important in improving acquirers’ innovation capabilities than hiring target inventors and knowledge spillovers. Finally, we show that recombining tacit knowledge embodied in the human capital of acquirer and target inventors is likely the mechanism. We conclude that inter-firm inventor collaboration is one key means for achieving synergies.

Keywords: human capital synergies, mergers and acquisitions, inter-firm inventor collaboration, knowledge spillovers, radical innovation, impactful innovation, valuable innovation

JEL Classification: G34, O32, O34

Suggested Citation

Li, Kai and Wang, Jin, Inter-firm Inventor Collaboration and Path-breaking Innovation: Evidence from Inventor Teams Post-merger (May 26, 2021). Available at SSRN: https://ssrn.com/abstract=3543512 or http://dx.doi.org/10.2139/ssrn.3543512

Kai Li (Contact Author)

University of British Columbia (UBC) - Sauder School of Business ( email )

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Asian Bureau of Finance and Economic Research (ABFER) ( email )

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China Academy of Financial Research (CAFR)

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European Corporate Governance Institute (ECGI) ( email )

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Belgium

Canadian Sustainable Finance Network (CSFN) ( email )

Queens University
Kingston, ON
Canada

HOME PAGE: http://https://smith.queensu.ca/centres/isf/research/network.php

Jin Wang

Wilfrid Laurier University - Lazaridis School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
Canada

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