In today's fast-paced technological landscape, companies are constantly seeking ways to stay ahead of the competition. Our recent study published in the Journal of Business Research offers valuable insights for executives looking to boost innovation through acquisitions of high-tech ventures. Here are the key takeaways:

1. Acquisition Pace Matters

Contrary to conventional wisdom, the study found that a faster pace of acquiring high-tech ventures leads to increased innovation output. This suggests that in rapidly changing industries, quickly acquiring multiple ventures can help companies adapt and innovate more effectively.

2. Target the "Sweet Spot" in Venture Maturity

Not all high-tech ventures are created equal. The study reveals that acquiring mid-maturity ventures (around 6 years old) yields the best results. These companies have developed enough to have established processes and knowledge, but aren't so mature that they're difficult to integrate.

3. Founder Retention is Nuanced

While retaining founders can be beneficial, it's not a one-size-fits-all solution. The study found that founder retention is most valuable for ventures in the mid-maturity stage (4-6 years old). For very young or mature ventures, founder retention may be less impactful or even counterproductive.

4. Innovation Translates to Market Share

The study demonstrated a tangible link between innovation output from acquisitions and market performance. On average, each additional patent developed from acquired technologies increased a company's product market share by 0.59%.

Practical Implications:

- Consider increasing your pace of high-tech venture acquisitions to stay competitive.

- Focus on acquiring ventures around 6 years old for optimal innovation outcomes.

- Be strategic about founder retention, considering it most strongly for mid-maturity ventures.

- View high-tech acquisitions as a key driver of innovation and potential market share growth.

By understanding these nuances in high-tech venture acquisitions, executives can make more informed decisions to drive innovation and maintain a competitive edge in rapidly evolving industries.

Reference: Bhussar, M. S., Sexton, J. C., Zorn, M. L., & Song, Y. (2022). High-tech acquisitions: How acquisition pace, venture maturity, and founder retention influence firm innovation. Journal of Business Research, 142, 620-635.