A start-up engages in an investment portfolio problem by choosing how much to invest in a “non-rival” project and a “rival” project that threatens an incumbent. Anticipating its acquisition, the start-up distorts its investment portfolio in order to raise acquisition rents. This may improve or worsen the direction of innovation and consumer surplus. The bigger the difference in social surplus appropriability across the two projects, the more likely it is that the direction of innovation improves and consumers benefit from an acquisition. These results also hold if the acquirer takes over the research facilities of the start-up.

中文翻译：

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初创企业收购如何影响创新方向？*

初创企业通过选择对“非竞争”项目和威胁现有企业的“竞争”项目投资多少来解决投资组合问题。为了提高收购租金，这家初创公司预期会被收购，因此扭曲了其投资组合。这可能会改善或恶化创新和消费者剩余的方向。两个项目的社会剩余分配差异越大，创新方向改善、消费者从收购中受益的可能性就越大。如果收购方接管初创企业的研究设施，这些结果也成立。