Work in Progress

“Selling the Future: Why Breakthrough Firms Choose Acquisitions over Growth?,” Solo-authored. 

Abstract: Why do firms with breakthrough innovations sell to incumbents rather than grow independently? Using matched firm-patent-acquisition data for 401,000 USPTO-patenting firms, I show three main results i) small firms produce higher-quality patents ii) breakthrough patents increase small firms acquisition probability but only in technologies where largest firms own big shares of the patent stock and iii) at the technological field level, acquisition activity is positively correlated with small firm patent quality and patent stock concentration. I develop an endogenous growth model where, as incumbents build large technological leads, acquisition activity rises and small firms specialize in radical innovation. According to the model, the increase in acquisitions in the U.S. explains 8.8% of increase in the small firm patent filing, 6.3% of the increase in incumbent markups and 3.6% of the decline in entry.

“The Impact of Foreign Ownership on Innovators” with Atte Pudas and Lauri Turkia.

“The Effect of Acquisitions on Innovation” with Philippe Aghion, Antonin Bergeaud, Laurence Capron and Laurie Ciaramella.