  This study examines the effects of acquisitions on the retention and R&D
productivity of inventors in the biotech sector, using data from 15,318
inventors involved in 1,375 acquisitions between 1990 and 2010. We employ a
staggered difference-in-differences approach and find that acquisitions lead to
a 13.5% decrease in inventor retention and a 35% drop in citation-weighted
patent productivity post-acquisition. The productivity decline is more severe
for inventors who remain with the acquiring firm, particularly for those whose
expertise is closely tied to the target company. However, older inventors and
those whose expertise aligns with the acquiring company's existing R&D
portfolio tend to retain higher productivity levels after the acquisition.
