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 that small firms produce higher-quality patents, that breakthrough patents increase acquisition probability, and that acquisitions concentrate in technology fields where entry is low, large firms hold large shares of the patent stock, and the patent quality gap between small and large firms is widest. I develop an endogenous growth model where, as incumbents build large technological leads, acquisition activity rises and small firms specialize in radical innovation. Removing acquisitions lowers entrant R&D effort, as the drop in innovation incentives outweighs gains from reduced concentration.

“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.