Connie Mao and colleagues, in the Journal of Accounting Research, explore how the opening of local patent libraries, which improve access to patent information, affects firms’ technological acquisitions. They find that access to patent libraries increases acquisition activity, widens the search for targets beyond local or technologically close firms, and improves deal completion and post-merger performance. Enhanced inventor collaboration after acquisitions further boosts innovation. The results show that lower information costs help firms identify better acquisition targets and create more value.
Does Access to Patent Information Help Technological Acquisitions? Evidence from Patent Library Openings
