Mergers and innovation: Evidence from the hard disk drive market

Anna Rita Bennato, Stephen Davies, Franco Mariuzzo, Peter Ormosi

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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 languageEnglish
Article number102755
JournalInternational Journal of Industrial Organization
Volume77
Early online date29 May 2021
DOIs
Publication statusPublished - Jun 2021

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