Change search
ReferencesLink to record
Permanent link

Direct link
External Innovation through Acquisitions in the High-tech Industry.: A Study of Strategic Implications
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Mergers and acquisition (M&A) have been at the forefront of academic research. However, most  of  the  research  in  this  realm  focuses  on  the  generic  benefits  that  arise  from acquisitions  or  the  challenges  that  they  involve.  This  paper  highlights  the  use  of acquisitions in the high-tech intensive industries (examples include pharmaceuticals, and electronic and communications) as a favorable means of external innovation to maintain competitive advantage.  The main objective of this research is to analyze both primary and secondary data,  in  order  to  propose  the  circumstances  under  which  it  is  strategically advantageous for firms to engage in external innovation through acquisition. The primary data has been collected from interviews with Oracle Corporation, and a current start-up in the high-tech industry. The following conclusion is drawn, that large profitable firms with accumulated and current R&D efforts, can benefit from acquiring smaller private start-ups to remain competitive. The uncertainty in technologically driven environment demands adaptable  firm boundaries to  continuously improve core  competencies, introduce new products lines, and decrease the time to market. The paper highlights the necessity for external innovation because in-house R&D is insufficient to catch all market movements. It proposes a framework for a proper acquisition strategy that emphasizes key aspects of competitive advantages for technology driven businesses.

Place, publisher, year, edition, pages
2013. , 40 p.
Keyword [en]
Merger & Acquisitions, External Innovation, in-house R&D, Acquisition targets, Strategic implications
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-142899OAI: diva2:704781
Available from: 2014-04-17 Created: 2014-03-13 Last updated: 2014-04-17Bibliographically approved

Open Access in DiVA

No full text

By organisation
Entrepreneurship and innovation
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 98 hits
ReferencesLink to record
Permanent link

Direct link