Abstract

RIOS NEQUIS, Eric Israel  and  CONTRERAS ALVAREZ, Isaí. Returns to scale in the global pharmaceutical industry: The importance of the evaluation of spending in mergers and acquisitions, 2012-2017. Anál. econ. [online]. 2019, vol.34, n.85, pp.95-120. ISSN 2448-6655.

The research explains that the expenses caused by a merger and / or acquisition are relevant in the analysis of returns to scale (Cobb-Douglas production function). The results of the research indicate that the returns to scale that are growing, emphasizing that they have an importance comparable to other items such as the expenses in research and development (R & D) and the other operational expenses, which are analyzed in the literature. It is concluded that innovation is not only internal (in house), since external innovation is an alternative to acquire patent rights at more accessible costs and with a lower risk that is originated in the process of innovation.

Keywords : production function; scale returns; productivity; acquisitions; D24; L23; D00; L10.