Abstract
This paper is a retrospective evaluation of how innovation changed following mergers and subsequent policy interventions after the 5-to-3 consolidation of the worldwide hard disk drive industry in 2012. It adopts a holistic view of innovation, employing four different measures: R&D, patents, the number of new models, and their unit prices. This allows us to distinguish the magnitude of the merging parties innovative efforts from the productivity of those efforts. Our firm-level approach confirms that there is important heterogeneity across the players, which we attribute to differences in the severity of remedies required by competition authorities.
Original language | English |
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Article number | 102755 |
Journal | International Journal of Industrial Organization |
Volume | 77 |
Early online date | 29 May 2021 |
DOIs | |
Publication status | Published - Jun 2021 |
Keywords
- Innovation
- Matrix completion
- Mergers
- Patents
- R&d