Title: Foreign acquisitions and R&D leverage in High Tech industries of peripheral economies. Lessons and policy issues from the Israeli experiences
Authors: Morris Teubal, Gil Avnimelech
Addresses: Department of Economics, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel. Department of Economics, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel
Abstract: This paper deals with a major challenge of globalisation to national innovation systems of skill-intensive peripheral economies: acquisitions of high-tech start-up companies by foreign multinational companies. Through a detailed microeconomic analysis both of successful company growth profiles and of post-acquisition patterns, the paper analyses possible implications for high tech and the economy as a whole. It concludes that the share of Start Up output to total high tech output of a country should be an important variable; and that this share was probably ||too high|| in Israel during 19992000.
Keywords: Israel; software industry; IT industry; venture capital; mergers and acquisitions (M&A); R&D leverage; dynamic capabilities; evolutionary and competence based theories; peripheral economies.
International Journal of Technology Management, 2003 Vol.26 No.2/3/4, pp.362 - 385
Published online: 05 Sep 2003 *
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