Working Paper Series, Uppsala Center for Labor Studies, Department of Economics, Uppsala University
Effects of foreign acquisitions on R&D and high-skill activities
(), Pär Hansson
() and Markus Lindvert
Abstract: Using Swedish micro data we find no evidence for the
concerns circulating in the public debate that foreign acquisitions lead to
reductions in R&D expenditures and high-skilled activities in targeted
domestic firms, neither in MNEs nor in non-MNEs. Previous studies have only
focused on larger firms. In this paper we are able to study the impact on
smaller firms (less than 50 employees). This is important since 90 percent
of the firms acquired by foreign enterprises have less than 50 employees.
For this group of firms there is no information on R&D, but by using the
register of educational attainment we have data on the share of
high-skilled labor in all Swedish firms, irrespective of size.
Interestingly, we find that among smaller firms foreign enterprises tend to
acquire high-productive, skill-intensive firms (cherry-picking) and after
the acquisitions skill upgrading appears in acquired smaller, non-MNE
Keywords: foreign acquisitions; skill upgrading; R&D intensity; propensity score matching; (follow links to similar papers)
JEL-Codes: F23; J24; O32; O33; (follow links to similar papers)
33 pages, November 17, 2015
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