Acquisitions as catalysts for inventor departures in the biotechnology industry
Abstract In high-tech industries, where intellectual property is crucial, the acquisition of intangible assets and tacit knowledge of employees is one of the main motivations for Mergers and Acquisitions (M&As). The takeover wave in the biotechnology industry in the 1990s following the molecular...
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| Format: | Article |
| Language: | English |
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Springer Nature
2025-05-01
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| Series: | Humanities & Social Sciences Communications |
| Online Access: | https://doi.org/10.1057/s41599-025-04894-w |
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| author | Luca Verginer Federica Parisi Jeroen van Lidth de Jeude Massimo Riccaboni |
| author_facet | Luca Verginer Federica Parisi Jeroen van Lidth de Jeude Massimo Riccaboni |
| author_sort | Luca Verginer |
| collection | DOAJ |
| description | Abstract In high-tech industries, where intellectual property is crucial, the acquisition of intangible assets and tacit knowledge of employees is one of the main motivations for Mergers and Acquisitions (M&As). The takeover wave in the biotechnology industry in the 1990s following the molecular biology revolution is a well-known example of how M&As were used to absorb new knowledge. However, after an M&A, it is uncertain whether key R&D employees who embody valuable knowledge and potential future innovations can be retained. Even if not all employees are relevant to the success of the acquisition, inventors are among the most valuable. This is especially true when acquiring an innovative startup. In this paper, we estimate how likely it is that an inventor working for an acquired biotechnology company will leave. Using a difference-in-differences approach with matching for both firms and inventors. We find that inventors affected by acquisitions are 20% more likely to leave the company. Our results contribute to the current debate on acqui-hiring of high-tech startups. |
| format | Article |
| id | doaj-art-87239ce5bc294ed5b3d1919aea3a5b17 |
| institution | OA Journals |
| issn | 2662-9992 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Springer Nature |
| record_format | Article |
| series | Humanities & Social Sciences Communications |
| spelling | doaj-art-87239ce5bc294ed5b3d1919aea3a5b172025-08-20T02:10:56ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-05-0112111210.1057/s41599-025-04894-wAcquisitions as catalysts for inventor departures in the biotechnology industryLuca Verginer0Federica Parisi1Jeroen van Lidth de Jeude2Massimo Riccaboni3Chair of Systems Design at ETH ZürichIMT School for Advanced Studies LuccaIMT School for Advanced Studies LuccaIMT School for Advanced Studies LuccaAbstract In high-tech industries, where intellectual property is crucial, the acquisition of intangible assets and tacit knowledge of employees is one of the main motivations for Mergers and Acquisitions (M&As). The takeover wave in the biotechnology industry in the 1990s following the molecular biology revolution is a well-known example of how M&As were used to absorb new knowledge. However, after an M&A, it is uncertain whether key R&D employees who embody valuable knowledge and potential future innovations can be retained. Even if not all employees are relevant to the success of the acquisition, inventors are among the most valuable. This is especially true when acquiring an innovative startup. In this paper, we estimate how likely it is that an inventor working for an acquired biotechnology company will leave. Using a difference-in-differences approach with matching for both firms and inventors. We find that inventors affected by acquisitions are 20% more likely to leave the company. Our results contribute to the current debate on acqui-hiring of high-tech startups.https://doi.org/10.1057/s41599-025-04894-w |
| spellingShingle | Luca Verginer Federica Parisi Jeroen van Lidth de Jeude Massimo Riccaboni Acquisitions as catalysts for inventor departures in the biotechnology industry Humanities & Social Sciences Communications |
| title | Acquisitions as catalysts for inventor departures in the biotechnology industry |
| title_full | Acquisitions as catalysts for inventor departures in the biotechnology industry |
| title_fullStr | Acquisitions as catalysts for inventor departures in the biotechnology industry |
| title_full_unstemmed | Acquisitions as catalysts for inventor departures in the biotechnology industry |
| title_short | Acquisitions as catalysts for inventor departures in the biotechnology industry |
| title_sort | acquisitions as catalysts for inventor departures in the biotechnology industry |
| url | https://doi.org/10.1057/s41599-025-04894-w |
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