The Efficiency Of Technology M&A:From The Perspective Of Structure Of Knowledge Bases

Innovation is the first driving force of development and the only way to promote industrial upgrading and development transformation.The report of the 19^th National Congress pointed out that building a more open innovation system and adopting a more open and innovative approach will help accelerate the transformation of economic development mode from the increase of factor input into a high-quality development mode with technological innovation and the improvement of the quality of workers.Open innovation requires enterprises to break through the closed environment.Technology merge and acquisition?M&A?is one of the important ways of implementing open innovation.It is of great significance to enhance the independent innovation capability of enterprises,digest excess capacity and optimize industrial structure.This paper is based on knowledge infrastructure and research knowledge.The effect of depth and breadth of knowledge on the performance of innovative corporate technology M&A.It refers to M&A activities that acquire technical resources through mergers and acquisitions to enhance the innovation ability of technology enterprises.This paper looked into the effect of depth and breadth of knowledge base on the performance of technology M&A based on the infrastructure of knowledge base.The contents of this paper include:Firstly,knowledge base are divided into knowledge depth and knowledge breadth based on former research and realistic background.Second,bring out the mechanism of knowledge depth and breadth on technology M&A from the aspects of motivation of technology M&A,influence and conditions to achieve its goals.Thirdly,1232 listed enterprises in China's manufacturing industry in 2006-2016 are divided into non-technical M&A enterprises and technology M&A enterprises according to the types of M&A activities.Compare the difference of them after M&A activities using Propensity Score Matching-Difference In Difference.Fourthly,add knowledge depth and breadth into our model to find the variation of knowledge base,and find out what the influence do them make to the benefit of enterprise.Finally drew out the conclusion.The conclusion are listed below.?1?Compare to non-technical M&A,the innovation performance of technology M&A is higher,but financial performance is lower.?2?Technology M&A has a significant positive effect on knowledge breadth but a non-significant effect on knowledge depth.When knowledge base is improved,the beneficial performance is improved.Hysteresis effect is examined in those regressions.?3?Compared to knowledge depth,knowledge breadth makes a greater contribution to financial performance.What makes this research different from others lies in:?1?Base on existing econometric model,multiple models are used trying to reduce or eliminate sample bias and systematic differences.?2?Distinguish between the effects of knowledge depth and breadth on technology Innovation and absorptive capacity and explore the mechanism of both in technology M&A.Broaden the research area of incremental with radical innovation and directional with non-directional innovation.?3?Systematic evaluate technology M&A performance.Based on this research,this paper proposes the management diversification attempts of enterprises,the use of multiple innovation models,and the management opinions and policy recommendations of government departments to further improve the innovation incentive mechanism.