The article investigates how combining different parts of a business chain, known as vertical integration, affects innovation. When companies merge or keep activities separate depends on whether both creating products and distributing them require new ideas. If both need innovation, integrating them can increase investment opportunities for the company. However, if only one side needs new ideas, companies prefer to keep things separate. This strategy helps companies decide whether to join forces or stay independent based on where innovation is most important, like in pharmaceuticals and related industries.