Abstract
More companies than ever before are turning to mergers and acquisitions (M&As). For many companies, M&As represent the fastest possible route to growth. The acquiring companies seek to grow quickly by flowing more of the same products through new sales channels. For other companies, formally aligning oneself with another company makes it possible to enter new markets that were unavailable before. M&As also represent an opportunity to achieve economies of scale and scope and pare operating costs, or to increase their innovative capabilities. M&As facilitate the acquisition and transfer of new knowledge, technologies or systems that are critical for competitive advantage. Many technology leaders routinely snap up smaller companies solely for the promise that a new invention may have for the future. The critical nature of time-to-market makes the purchase of companies whose technology is coveted more attractive than actually developing the technology in-house. This paper focuses on the role of M&As as a tool for knowledge and technology transfer. In this context, the following broad research questions are discussed. How far are M&As dependent on country-specific structural effects and on the broad dimensions of incentives, infrastructures and institutions? To what extent can M&As be influenced by policy frameworks and the administrative regulatory environment? What is the impact of M&As on the economic development of small and open economies?.