Role of acquisitions in driving innovation in the economy

Luke Wainscoat, Nick Twort and Andrew Brunt prepared a report on the economic literature regarding mergers and innovation, which was submitted to the Treasury’s consultation on merger reform. This report finds that:

• mergers and acquisitions drive innovation and in turn productivity in the economy. The extent and dispersal of innovation is therefore likely to be reduced if the proposed merger reforms lessen the incentive or ability for established firms to acquire others; and
• the idea that some firms acquire others to discontinue a product that may become a competitive constraint in the future applies to, at most, a narrow and specific set of circumstances. This consideration should therefore not affect an economy-wide regulation such as the merger regime.

Other news items you may find interesting

• Read more

  HoustonKemp contributes to the revitalisation of the National Competition Policy

  HoustonKemp is pleased to announce our recent submission to the consultation on revitalising the National Competition Policy…
• Read more

  An Epic Games epic

  The Federal Court has this week heard closing submissions by counsel for Apple in response to antitrust claims brought against…
• Read more

  HoustonKemp at 10

  Last night we celebrated our 10^th anniversary with many of our wonderful clients and colleagues. We reflected on the changes…
• Read more

  Bargaining power

  Bargaining power has recently been subject to a great deal of attention. Allegations of bargaining power imbalances in the digital…

View all