The Impact of Acquisitions on Inventor’s Productivity:

From the Viewpoint of Changes in Co‑Developer’s Relation

Abstract

This paper clarifies, from the viewpoint of the social capital theory, the effect of changes in co-developers’ relation on post-acquisition performance level of the research and development (R&D) in acquired firms. While the importance of innovative activities after acquisitions has been recognized in existing researches on successful technological acquisitions, how the changes of social networks affect performance has not been sufficiently studied. Examining acquisitions in the U.S. semiconductor industry, the paper demonstrates that the expansion of social capital is positively related to the level of innovation, and that this correlation is dependent on the technological characteristics of partnership and the industry.