‘The volume provides provocative new insights into the dynamic relationship between two of the most strategic priorities for 21st century firms: technological innovation and M&As. It does so by bringing together in a novel way the literature on these two different areas of firm activity and by adding economic theory and advanced empirical methods (both qualitative and quantitative) to the management literature on the subject. The analysis proves remarkably fruitful, finally creating less uncertainty and inconclusiveness around the empirics of post M&A performance. By developing a broad set of measures on innovation for assessing the impact of M&A on innovation, and by relying on fascinating case studies on individual M&As (rather than just using R&D expenditures, patent counts, etc.), the authors are able to document the importance for post M&A performance of dynamic factors like market and technology relatedness (between partners) – findings that have critical implications for economic theorists, business practitioners and policymakers.’ – Mariana Mazzucato, Open University, UK

‘It is often said that mergers and acquisitions (M&A) have adverse effects both on the innovative activities of those firms involved and on their subsequent economic performance. This book has several great merits and one of them is that it overturns such simplistic generalisations. It demonstrates the variety of outcomes depending in large measure on the motives which drive the M&A. Where the motivation is simply "diversification" and problems of innovation are neglected, then the outcome may indeed often be adverse. But where innovation is itself the main motive of the M&A activity, the results can often be positive and sometimes extremely so. The book demonstrates the advantages of an in-depth case study approach to specific cases of M&A activity and of a longitudinal approach to both causes and consequences of this activity. It is also a good demonstration of the complementarity between advances in economic theory and the quality of relevant empirical research. Evolutionary economic theory has increasingly emphasised the great significance of fluctuations variously described as "waves", "cycles", "bubbles", "swings", or "surges" and such fluctuations in M&A activity have long ago been recognised. The careful empirical studies described in this book will facilitate the work of all those who wish to understand the relationship between these fluctuations and the wider movements in the economy as a whole as well as the structural changes associated with these movements.’ – Chris Freeman, SPRU – Science and Technology Policy Research, University of Sussex, UK and Maastricht University, The Netherlands

‘Corporations have long argued that mergers and acquisitions are crucial to them not just for financial strength but for increasing returns from boosting their efforts in innovation. Governments have also tended to side with this view, and not infrequently intervened in the process to foster amalgamations. But do mergers and acquisitions really benefit innovation? Doubts have been expressed by a few academics and too by stock market valuations, but the evidence base is alarmingly weak. There is some support for the view that mergers and acquisitions will improve innovation only when the various parties are closely "related". The issue of what "relatedness" means in this context has not, however, been much scrutinised; moreover most of the limited empirical work to date is US-based. In this work, Professors Cassiman and Colombo assemble an impressive array of mainly European-based scholars to bring fresh insights into this subject. Their approach breaks the notion of "relatedness" down into its constituent parts, and this proves the key to providing a much sounder base for analysis and ultimately for policy-making. Practitioners of industrial policy as well as students of industrial dynamics need to read this book.’ – Nick von Tunzelmann, SPRU – Science and Technology Policy Research, University of Sussex, UK

This book examines the issue of mergers and acquisitions (M&As) in the context of technological development, and in particular the impact of M&As on the innovation process. In so doing, the book integrates two bodies of literature, on M&As, and on innovation studies, a nexus which the editors contend represents an important step in the advancement of our understanding of both with clear implications for competitive advantage and growth of firms. Drawing on perspectives from both management and economics, the book offers a cohesive blend of theory, methodology, and a wealth of empirical material.

The synthesis of managerial and economic analysis of the effects of M&As on innovation will be of great interest to academics and students in management and economics, as well as high-level managers and policymakers.