Assessing the Influence of Mergers and Acquisitions on Innovation and Market Competitiveness in the Pharmaceutical Industry: Global Trends and Strategic Implications for Turkey

This study examines the impact of mergers and acquisitions (M&A) on innovation and competitiveness within the pharmaceutical sector, a critical industry characterized by intensive R&D and dynamic market conditions. Using a panel dataset spanning multiple countries and years, relationships among key indicators such as R&D expenditure, patent applications, market share changes, and M&A activity are analyzed. Advanced econometric techniques, including panel regression models and Granger causality tests, are employed to explore both direct effects and temporal dynamics. The findings reveal a complex interplay between M&A activities and innovation outputs, highlighting bidirectional causality and contextual influences. By providing empirical evidence on the dual role of M&A as both an enabler and potential inhibitor of innovation, this research contributes to the ongoing discourse on sustainable growth strategies in the pharmaceutical sector. The study offers actionable insights for policymakers and stakeholders, emphasizing the importance of balancing innovation promotion with competitive dynamics.