Digital platform mergers and innovation: Evidence from the cloud computing market

Doan, Thanh and Mariuzzo, Franco (2026) Digital platform mergers and innovation: Evidence from the cloud computing market. Journal of Industry, Competition and Trade, 26. ISSN 1566-1679

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Abstract

This paper empirically analyses mergers and innovation in the cloud computing market, one of the fastest-growing digital markets. We first examine mergers by big tech firms and venture capital funding for young start-ups in this market. We find that leading firms in the market tend to acquire young start-ups, whereas non-leading firms tend to purchase more established firms to gain market share. We then conduct an ex-post evaluation of how mergers in this market affect the innovation output -- measured by patents. The results show a positive impact of mergers on the number of granted patents. In this market, and our measure of innovation, acquisitions do not necessarily harm innovation. The breakdown of this empirical analysis reveals stronger positive effects when the firm holds a leadership position in the market, operates as a multisided platform, or when the target is a publicly traded company. The value of the acquisition does not exert any additional impact.

Item Type:	Article
Additional Information:	Data Availability: The data that underlie the findings of this study, titled “Digital platform mergers and innovation: Evidence from the cloud computing market,” are proprietary. This paper presents an empirical analysis of mergers and innovation within the cloud computing market, one of the rapidly expanding digital sectors. The dataset utilised in this research was collated from the Crunchbase website and encompasses information about US-based cloud computing companies. Additionally, data on acquirers and targets was sourced from Thomson Reuters Datastream and includes variables such as net sales/revenue, R&D investment, net income, total assets, total debt, and gross profit margins. Due to license restrictions imposed by the two sources, we regret to inform you that we will not be able to share the original dataset. However, we would be willing to explain how a replicator could gain access to these sources. Indeed, we are fully committed to sharing all the codes utilised in this study, alongside an in-depth breakdown of the variables. This includes the identification of firms employed as acquirers, targets, and units in the propensity score matching. We intend to provide this information in the form of an Excel spreadsheet, organised with firm names as rows and variables as columns. We will also include a description of the time period of interest. Notably, the spreadsheet will incorporate an indicator distinguishing the type of firm (acquirer, target, control unit). This comprehensive approach ensures that anyone granted access can replicate our work, even if they possess access to the two original data sources. For any queries related to data access or additional information, please do not hesitate to reach out to Thanh Doan: thanh.doan@ofcom.org.uk. We encourage fellow researchers to explore and validate our findings using this available dataset to contribute to the advancement of knowledge in the domain of digital platform mergers, innovation dynamics, and the cloud computing market.
Uncontrolled Keywords:	cloud computing,innovation,mergers,patents,economics and econometrics,sdg 9 - industry, innovation, and infrastructure,2*,applied policy paper ,/dk/atira/pure/subjectarea/asjc/2000/2002
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Industrial Economics
Depositing User:	LivePure Connector
Date Deposited:	13 May 2026 08:42
Last Modified:	14 May 2026 15:15
URI:	https://ueaeprints.uea.ac.uk/id/eprint/102977
DOI:	10.1007/s10842-026-00474-z

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