Firm acquisitions, resource complementarity, and the access to localized knowledge

How do firms gain access to localized knowledge? In this research, we investigate firm acquisitions as a channel through which acquiring firms obtain exposure to knowledge spillovers in a target firm’s region. Based on a comprehensive dataset of 851 technology-oriented mergers and acquisitions in Europe from 2001 to 2010 combined with data on regional patent stocks, our results show that the price of a target firm paid by the acquirer increases...