Research On Cross-border Mergers And Acquisitions On National Economic Security Based On Technology Innovation

Recently, not only entrepreneurs and scholars but also government officers have paid attentions to the issues of the deeply reform of state-owned enterprises in China, the coming of multinational corporations (MNCs), the cross-border mergers and acquisitions (M&A), the opportunities and risks the firms faced and the national economic security. On the one side, we insist on introducing foreign capital actively, allowing MNCs merge our preponderant firms, which brings scarce chance to our firms'reorganization and improvement of competition, but on the other side, cross-border M&A brings hidden danger that can't be ignored to national economic security.Based on technology innovation, this paper explores the effect of cross-border M&A on national economic security from microscopic and macroscopic views respectively. From the microscopic view, we adopt Cournot model to discuss the influence of cross-border M&A on the changes of domestic firm's inputs into technology innovation and then find that less inputs before cross-border M&A while MNCs'technology transfer and efficient post merger integration promote technology innovation of domestic firm after cross-border M&A. Then, we choose SANY as an example to emphasize in practice the effect of cross-border M&A on domestic firm's technology innovation. From the macroscopic view, we base on capital accumulation and self-innovation capacity of core technology and then find that in a host country that lacks capital, if MNCs remit more profits to their parent companies in foreign than capital invested in host country, the host country's R&D ability of core technology will decline and as a result, the host country's economic security will be threatened. In the empirical studies, the above conclusions are supported by the data of China. In the end, we put forth some considerations about the maintenance of national economic security in the cross-border M&A.