What happens to innovation after Big Tech buys a startup

Concerns abound that ‘killer acquisitions’ by tech giants could deter startup entry and stifle innovation. This column analyses patent data before and after 1,200 acquisitions by eight technology giants between 1995 and 2020. On average, the ‘Big Eight’ firms appear to invest in the acquired technology rather than kill it. Acquired inventions become more influential, more widely cited, and more embedded in follow-on innovation by both the acquirer and competitors. However, longer-term changes to the competitive landscape need further investigation.Read More