Business Commons^™

Effects Of Acquisitions On R&D Inputs And Outputs, Michael A. Hitt, Robert E. Hoskisson, R. Duane Ireland, Jeffrey S. Harrison

Management Faculty Publications

Making acquisitions, although a popular strategy, may not always lead to positive firm performance. Researchers have offered several explanations for this relationship. One is that acquisitions lead to lower investments in R&D and curtail the championing process whereby organization members internally promote new products and processes in firms. The current research found that acquisitions had negative effects on "R&D intensity" and "patent intensity."