M&A or R&D?
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- Miyazaki Hironobu
- Graduate School of Economics, Kyoto University
Bibliographic Information
- Other Title
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- M&AかR&Dか
- An Analysis of Growth-strategy in the Pharmaceutical Industry
- 医薬品産業における成長戦略の実証分析
Abstract
The purpose of this paper is to investigate the relationship between M&A and R&D investment in the Japanese pharmaceutical industry.<br>Theory suggests M&A may be positively correlated with R&D investment if M&A is motivated by synergistic gains, for example, economies of scale and scope. On the other hand, a negative correlation may occur if firms are choosing risk diversification strategies.<br>Using panel data of 63 firms, 157 samples from 2000-03 and probability models, such as a probit model, a logit model, and a count data model, I conducted an empirical analysis.<br>The major quantitative results are summarized as follows.<br>First, there is a negative correlation (substitutability) between M&A and R&D investment. This suggests firms are specializing in either an internal growth strategy or an external growth strategy.<br>Second, there is a positive correlation between probability of M&A and the firm size.
Journal
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- Iryo To Shakai
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Iryo To Shakai 15 (2), 51-61, 2005
The Health Care Science Institute
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Details 詳細情報について
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- CRID
- 1390001204472555648
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- NII Article ID
- 130004547606
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- ISSN
- 18834477
- 09169202
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- Data Source
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- JaLC
- Crossref
- CiNii Articles
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- Abstract License Flag
- Disallowed