GT Lab Internal Seminar on September, 20: Tatiana Mayskaya

Title: The Effect of Mergers on Innovations
Speaker: Tatiana Mayskaya, HSE
Date & Time: September, 20; 15.00
Where: Kantemirovskaya str 3/1, 5th floor

Tatiana Mayskaya (HSE) will give a talk on The Effect of Mergers on Innovations.

Time: 15.00
Abstract: We study the effect of a two-to-one merger on R&D activity in a dynamic model in which there is uncertainty about the feasibility of innovation. The merger has four effects on innovations. Once an innovation has already taken place, the merger may block future innovations (cannibalization effect). At the same time, the merger may increase the probability of the first game-changer innovation (appropriability effect) and bring this innovation forward in time (informational effect). In addition, the merger may increase innovation diversity (diversity effect). A surprising policy implication of our model is that the benefit of the merger may be higher if the first and subsequent innovations are closer substitutes.

Paper: https://ssrn.com/abstract=4343673