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

  Does Easter feel like it came early this year?

  It sure felt that way to us as we tucked into our hot cross buns this morning! There are some…
• Read more

  Economics in action: Smart Energy Council

  Adrian Kemp shares his thoughts on some of the key themes discussed at the event,…
• Read more

  Competition Law Discussion Group presentation about the ACCC’s authorisation of the Linfox/Prosegur merger

  Luke Wainscoat and Nick Twort recently gave a presentation to the Competition Law Discussion…
• Read more

  HoustonKemp advises on declaration in telecommunications markets

  Luke Wainscoat and Zoe Odgers have prepared a report for Pivotel…

View all