The Empirical Study Between Technological M&A And Innovation Performance Of Chinese Pharmaceutical Listed Company

Mergers and acquisitions(M&As)have been a significant firm strategy for many years.With the rapid development of economy,more and more enterprises have expanded and developed through mergers and acquisitions.Mergers and acquisitions among enterprises have promoted the rapid development of enterprises and optimized the integration of resources among different industries.The pharmaceutical industry is a typical high-tech industry driven by technological innovation,playing an important role in the consolidation of industry mergers and acquisitions.In the pharmaceutical companies’ M&As,pharmaceutical companies are very concerned about the level of technological innovation of the target company,through the acquisition of technology for the purpose of M&A to make up for their own R & D innovation.China’s pharmaceutical industry also achieve a leap-forward development because of the fast development of the economy.More and more pharmaceutical companies obtain new technologies and products through mergers and acquisitions.The rapid development of the pharmaceutical industry,will give birth to large-scale industry restructuring and integration,which is the way to grow and develop enterprises.Firstly,this paper tests respectively the influence of technological M&A and non-technological M&A on innovative performance.Then,it reveals the mechanism of technological M&A on innovative performance in terms of the technical knowledge.This paper selected a total of 181 A-share pharmaceutical listed companies in Shenzhen and Shanghai Stock Exchange Market as the research object.Through the study of 162 pharmaceutical listed companies M&A activities in the 2009-2015 to explore the impact of technology M&A and innovation performance.Further,80 of them were selected to acquire technology for the purpose of mergers and acquisitions,to explore the impact of technology M & A innovation performance mechanism.This dissertation draws some conclusions as follows:(1)Technology-driven M&As has an impact on innovation performance,and non-technology-driven M&As does not have a significant impact on innovation performance;(2)There is a significant positive correlation between the absolute size of the target and the innovation performance;(3)There is a significant negatively correlation between the absolute size of the target and the innovation performance.The relative knowledge scale of the M & A company is significantly negatively correlated with the innovation performance;(4)The absorptive capacity of the acquirer has a significant positive impact on innovation performance.This paper shows that,compared with non-technology mergers and acquisitions,technology mergers and acquisitions are more conducive to enterprises to achieve innovative results.With the rapid development of China’s pharmaceutical industry,pharmaceutical company,relying on their own research and development,but also through mergers and acquisitions to obtain external research results.By studying the mechanism of technology M&A on innovation performance.We conclude that technological M&A can improve enterprises’ innovative performance while non-technological M&A cannot.The absolute knowledge scale of the M&A company is positively correlated with the innovation performance while the relative knowledge scale of the M&A company is significantly negatively correlated with the innovation performance.The absorptive capacity of M&A enterprises are beneficial to improve the innovation performance of enterprises.In the process of mergers and acquisitions,the pharmaceutical industry should not blindly pursue the scale expansion effect,but should consider the technology acquisition as the purpose of mergers and acquisitions.It will help strengthen the R & D innovation ability of enterprises,enhance their own technical knowledge reserves and improve the core competitiveness of enterprises.Through the integration of technology between enterprises,to strengthen technological transformation.