While President Joe Biden's Federal Trade Commission (FTC) keeps trying to stop successful companies from growing through mergers and acquisitions, a new study highlights the significant role large firms play in developing new technologies, goods, and services.
In a July working paper for the National Bureau of Economic Research, titled "Mega Firms and Recent Trends in the U.S. Innovation: Empirical Evidence from the U.S. Patent Data," five researchers use sales data and patent data to evaluate the role of megafirms—"the top 50 firms by sales in any given year"—in developing "novel patents."
