Title: Effect of acquisitions on R&D intensity: international evidence

Authors: Bruce Seifert; Halit Gonenc

Addresses: Department of Finance, Strome College of Business, Old Dominion University, Norfolk, Virginia 23529, USA ' Department of Economics, Econometrics and Finance, Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands

Abstract: This study examines the effect of acquisitions worldwide on R&D intensity of acquiring firms. Acquisitions on one hand could help acquirers with accessing innovation capabilities of target firms. On the other hand, R&D intensity of acquirers decreases after acquisitions because of integration problems between the acquirer and the target. The results do not show strong evidence that R&D intensity significantly changes after acquisitions in general. Industry relatedness and the listing status of targets do not seem to matter in regards to acquirers' future R&D intensity, either. However, R&D intensity appears to be influenced by whether or not acquirers operate in industries with high R&D intensity. Moreover, R&D intensity of acquirers increases after cross-border acquisitions when cultural distance is high and the income level is similar between the acquirer and the target countries. An increase in R&D intensity is more pronounced when acquirers are not American firms.

Keywords: acquisitions; R&D intensity; industry relatedness; target listing status; cross-border acquisitions; country income level; cultural distance.

DOI: 10.1504/EJIM.2026.153174

European Journal of International Management, 2026 Vol.29 No.1, pp.160 - 202

Received: 08 Jun 2020
Accepted: 05 Jan 2021
Published online: 29 Apr 2026 *

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