Politická ekonomie X:X | DOI: 10.18267/j.polek.1555

How Cross-Border Mergers and Acquisitions Activities Influence Technological Cooperation: A Study of Chinese Industries

Xiaowen Wan, Yike Xiong, Bo Yang, Atif Jahanger ORCID..., Elyse Yuan
Xiaowen Wan, School of Law and Economics, Wuhan University of Science and Technology, Wuhan, China
Yike Xiong, School of Economics, Zhongnan University of Economics and Law, Wuhan, China
Bo Yang, School of Economics, Zhongnan University of Economics and Law, Wuhan, China
Atif Jahanger (corresponding author), Faculty of Economics and Management, Vytautas Magnus University K. Donelaičio, Kaunas, Lithuania; Faculty of Economics and Management, Széchenyi István University, Győr, Hungary
Elise Yuan, Faculty of Arts & Science, McMaster University, Hamilton, Canada

Under the background of economic globalization and open innovation, developing countries face difficulties adapting to the current complex innovation environment and achieving technological self-sufficiency solely through the independent innovation of research and development entities. Technical cooperation, characterized by the integration of innovative advantages from multiple research and development (R&D) entities, can help developing countries break through key technologies and alleviate issues such as insufficient innovation resources. This article takes Chinese industries that have undergone cross-border merg ers and acquisitions (M&As) as the research object to empirically analyze the impact of Chinese cross-border M&As on technological cooperation. The empirical analysis takes Chinas industrial cross-border M&As from 2000 to 2024 as the research object and uses a fixed-effects model to empirically analyze the impact of cross-border M&As on industrial technology cooperation. The research results show that cross-border M&As can promote industrial technological cooperation, mainly through the effects of R&D investment and overseas scale markets. In addition, differences in patent subdivisions and the economic development level of the host country may influence the impact. The research conclusion provides policy insights for China to promote technological cooperation and enhance the international competitiveness of its industries.

Keywords: Cross-border M&As, technological cooperation, R&D investment, overseas market expansion

Received: September 11, 2025; Revised: March 3, 2026; Accepted: March 16, 2026; Prepublished online: October 15, 2026 

Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Alcácer, J., Delgado, M. (2016). Spatial organization of firms and location choices through the value chain. Management Science, 62(11), 3213-3234. https://doi.org/10.1287/mnsc.2015.2308 Go to original source...
    2. Ali, U., Li, Y., Wang, J.-J., Chen, Z. (2022). Outward FDI and productivity spillovers in China: an industrial perspective. International Journal of Emerging Markets, 17(8), 1926-1948. https://doi.org/10.1108/IJOEM-01-2020-0076 Go to original source...
    3. Altuzarra, A. (2010). Convergence in the innovative performance of the European Union countries. Transition Studies Review, 17(1), 22-38. Go to original source...
    4. Alon, I., Elia, S., Li, S. (2020). Greenfield or M&A? An institutional and learning perspective on the establishment mode choice of Chinese outward investments. Journal of International Management, 26(3), 100758. https://doi.org/10.1016/j.intman.2020.100758 Go to original source...
    5. Blundell, R., Griffith, R., Van Reenen, J. (1995). Dynamic count data models of technological innovation. Economic Journal, 105(429), 333-344. https://doi.org/10.2307/2235494 Go to original source...
    6. Bustamante, M. C., Fresard, L. (2021). Does firm investment respond to peers' investment. Management Science, 67(8), 4703-4724. https://doi.org/10.1287/mnsc.2020.3695 Go to original source...
    7. Castellani, D., Lavoratori, K. (2019). Location of R&D abroad-An analysis on global cities. In: Capik, P., Dej, M. (eds). Relocation of Economic Activity. Cham: Springer. https://doi.org/10.1007/978-3-319-92282-9_9 Go to original source...
    8. Castellani, D., Lavoratori, K. (2020). The lab and the plant: Offshore R&D and co-location with production activities. Journal of International Business Studies, 51(1), 121-137. https://doi.org/10.1057/s41267-019-00255-3 Go to original source...
    9. Chen, Y., Puttitanun, T. (2005). Intellectual property rights and innovation in developing countries. Journal of Development Economics, 78(2), 474-493. https://doi.org/10.1016/j.jdeveco.2004.11.005 Go to original source...
    10. Chen, F., Meng, Q., Li, X. (2018). Cross-border post-merger integration and technology innovation: A resource-based view. Economic Modelling, 68, 229-238. https://doi.org/10.1016/j.econmod.2017.07.012 Go to original source...
    11. Chen, Y., Yuan, R., Guo, X., Ni, Tao. (2024). Do foreign acquisitions improve target firms' green innovation performance? International Review of Economics & Finance, 95(4), 103458. https://doi.org/10.1016/j.iref.2024.103458 Go to original source...
    12. Cohen, W. M., Levinthal, D. A. (1989). Innovation and learning: The two faces of R&D. Economic Journal, 99(397), 569-596. https://doi.org/10.2307/2233763 Go to original source...
    13. Damioli, G., Marin, G. (2024). The effects of foreign entry on local innovation by entry mode. Research Policy, 53(3), 104957. https://doi.org/10.1016/j.respol.2024.104957 Go to original source...
    14. Ding, Y. B., Li, J., Tian, Y. Q. (2024). The short and long-term effects of cross-border M&A network on Chinese enterprises' green innovation. Economic Modelling, 134, 106704. https://doi.org/10.1016/j.econmod.2024.106704 Go to original source...
    15. Dunning, J. H. (1977). Trade, location of economic activity and the MNE: A search for an eclectic approach. In: Ohlin, B., Hesselborn, PO., Wijkman, P.M. (eds). The International Allocation of Economic Activity. London: Palgrave Macmillan. https://doi.org/10.1007/978-1-349-03196-2_38 Go to original source...
    16. Fresard, L., Hege, U., Phillips, G. M. (2017). Extending Industry Specialization through Cross-Border Acquisitions. Review of Financial Studies, 30(5), 1539-1582. https://doi.org/10.1093/rfs/hhx008 Go to original source...
    17. Furman, J. L., Hayes, R. (2004). Catching up or standing still?: national innovative productivity among "follower" countries, 1978-1999. Research Policy, 33, 1329-1354. Go to original source...
    18. Ghazinoory, S., Riahi, P., Azar, A., Miremadi, T. (2014). Measuring innovation performance of developing regions: learning and catch-up in provinces of Iran. Technological and Economic Development of Economy, 20(3), 507-533. https://doi.org/10.3846/20294913.2014.881433 Go to original source...
    19. Goyal, S., Moraga-González, J. L., Konovalov, A. (2008). Hybrid R&D. Journal of the European Economic Association, 6(6), 1309-1338. https://doi.org/10.1162/JEEA.2008.6.6.1309 Go to original source...
    20. Hao, Y., Wu, W. (2024). Rigid debt maturity structure and enterprise innovation. Finance Research Letters, 60, 104923. https://doi.org/10.1016/j.frl.2023.104923 Go to original source...
    21. Hung, K. P., Chou, C. (2013). The impact of open innovation on Firm Performance: The Moderating Effects of Internal R&D and Environmental Turbulence. Technovation, 33(10-11), 368-380. https://doi.org/10.1016/j.technovation.2013.06.006 Go to original source...
    22. Hutzschenreuter, T., Harhoff, P. L. (2020). National capital city location and subsidiary portfolio expansion: The negative effect of geographic distance to the capital city at inception on the speed of subsequent investments. Journal of International Business Studies, 51(7), 1107-1132. https://doi.org/10.1057/s41267-020-00305-1 Go to original source...
    23. Iqbal, N., Xu, J.F., Fareed, Z., Wan, G., Ma, L. (2022). Financial leverage and corporate innovation in Chinese public-listed firms. European Journal of Innovation Management, 25(1), 299-323. https://doi.org/10.1108/EJIM-04-2020-0161 Go to original source...
    24. Jiang, M., Fang, J., Yang, Y., Yu, C., Li, J. (2024). Supply chain concentration, industry concentration and enterprise innovation performance. Finance Research Letters, 63, 105394. https://doi.org/10.1016/j.frl.2024.105394 Go to original source...
    25. Kanters, S. (2022). Fixed- and Random-Effects Models. In: Evangelou, E., Veroniki, A.A. (eds) Meta-Research. Methods in Molecular Biology, vol 2345. New York: Humana. https://doi.org/10.1007/978-1-0716-1566-9_3 Go to original source...
    26. Kolesnikov, S., Goldstein, A. P., Sun, B., Chan, G., Narayanamurti, V., Anadon L. D. (2024). A framework and methodology for analyzing technology spillover processes with an application in solar photovoltaics. Technovation, 134, 103048. https://doi.org/10.1016/j.technovation.2024.103048 Go to original source...
    27. Kowalski, A. M. (2021). Dynamics and Factors of Innovation Gap Between the European Union and China. Journal of the Knowledge Economy, 12(4), 1966-1981. https://doi.org/10.1007/s13132-020-00699-1 Go to original source...
    28. Laursen, K., Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27(2), 131-150. https://doi.org/10.1002/smj.507 Go to original source...
    29. Leary, M. T. Roberts, M. R. (2014). Do peer firms affect corporate financial policy? Journal of Finance, 69(1), 139-178. https://doi.org/10.1111/jofi.12094 Go to original source...
    30. Lee, I. H., Hong, E., Shin, J. K. (2023). Multinational enterprises, intra-regional cross-border M&As, and performance: Location advantages of market versus knowledge. International Business Review, 32(6), 102177. https://doi.org/10.1016/j.ibusrev.2023.102177 Go to original source...
    31. Lee, S., Park, G., Yoon, B., Park, J. (2010). Open innovation in SMEs-An intermediated network model. Research Policy, 39(2), 290-300. https://doi.org/10.1016/j.respol.2009.12.009 Go to original source...
    32. Liu, Y., Li, M., Feng, H., Feng, N. (2024). Technological cooperation or competition? optimal strategies of incumbent and entrant in ICT markets. Omega-International Journal of Management Science, 125, 103037. https://doi.org/10.1016/j.omega.2024.103037 Go to original source...
    33. Luo, Y., Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 38(4), 481-498. https://doi.org/10.1057/palgrave.jibs.8400275 Go to original source...
    34. Machokoto, M., Gyimah, D., Ntim, C. G. (2021). Do peer firms influence innovation?
    35. Mavroudi, E., Kafouros, M., Jia, F., Hong, J. (2023). How can MNEs benefit from internationalizing their R&D across countries with both weak and strong IPR protection? Journal of International Management, 29(1), 100994. https://doi.org/10.1016/j.intman.2022.100994 Go to original source...
    36. Nie, P. Y., Yang, Y. C. (2023). Innovation and competition with human capital input. Managerial and Decision Economics, 44(3), 1779-1785. https://doi.org/10.1002/mde.3782 Go to original source...
    37. Niu, Y. L., Dai, C., Zhang, R. J., Yao, H. J. (2024). Peer effects in internationalization of engineering enterprises: moderating analyses and heterogeneity tests. Engineering Construction and Architectural Management. https://doi.org/10.1108/ECAM-10-2023-1011 Go to original source...
    38. Nocke, V., Yeaple, S. (2008). An assignment theory of foreign direct investment. Review of Economic Studies, 75(2), 529-557. https://doi.org/10.2139/ssrn.645882 Go to original source...
    39. Peiró-Signes, A., Díez-Martínez, I., Segarra-Oña, M. (2024). The drivers of cooperation for innovation and the role of environmental orientation. Corporate Social Responsibility And Environmental Management, 31(4), 2929-2952. https://doi.org/10.1002/csr.2726 Go to original source...
    40. Rabbiosi, L., Elia, S., Bertoni, F. (2012). Acquisitions by EMNCs in developed markets: An organizational learning perspective. Management International Review, 52, 193-212. https://doi.org/10.1007/s11575-012-0134-3 Go to original source...
    41. Rugman, A. M., Verbeke, A. (2001). Subsidiary-specific advantages in multinational enterprises. Strategic Management Journal, 22(3), 237-250. https://doi.org/10.1002/smj.153 Go to original source...
    42. Rosiello, A., Maleki, A., 2021. A dynamic multi-sector analysis of technological catch-up: The impact of technology cycle times, knowledge base complexity and variety. Research Policy, 50(3), 104194. https://doi.org/10.1016/j.respol.2020.104194 Go to original source...
    43. Sabbadin, E., De Noni, I., Belussi, F. (2022). Cross-border acquisitions and technological spillover: evidence from European regional clusters. Competitiveness Review, 32(5), 821-839. https://doi.org/10.1108/CR-11-2021-0166 Go to original source...
    44. Shaver, J. M. (2019). Interpreting interactions in linear fixed-effect regression models: When fixed-effect estimates are no longer within-effects. Strategy Science, 4(1), 25-40. https://doi.org/10.1287/stsc.2018.0065 Go to original source...
    45. Shi, L., Gao, S., Xu, A., Zheng, K., Ji, Y., Dong, X., Xing, L. (2023). Influence of enterprise's factor inputs and co-opetition relationships to its innovation output. Sustainability, 15(1), 838. https://doi.org/10.3390/su15010838 Go to original source...
    46. Shrout, P. E., Bolger, N. (2002). Mediation in experimental and nonexperimental studies: new procedures and recommendations. Psychological Methods, 7(4), 422-445. https://doi.org/10.1037//1082-989X.7.4.422 Go to original source...
    47. Si, Y., Zhang, Y., Teng, T. (2021). R&D internationalization and innovation performance of Chinese enterprises: The mediating role of returnees and foreign professionals. Growth and Change, 52(4), 2194-2212. https://doi.org/10.1111/grow.12555 Go to original source...
    48. Wan, X., Pan, F., Liu, C., Zhao, J., Li, C. (2024). The impact of profitability sustainability on innovation in dairy companies: The multiple moderating effects of corporate social responsibility. Sustainability, 16(14), 5935. https://doi.org/10.3390/su16145935 Go to original source...
    49. Wang, X., Han, X., Li, H. (2023). The impact of innovation openness on innovation performance of manufacturing corporates - Moderating effect based on knowledge reorganization. Finance Research Letters, 55, 103917. https://doi.org/10.1016/j.frl.2023.103917 Go to original source...
    50. Weber, B., Heidenreich, S. (2018). When and with whom to cooperate? Investigating effects of cooperation stage and type on innovation capabilities and success. Long Range Planning, 51(2), 334-350. https://doi.org/10.1016/j.lrp.2017.07.003 Go to original source...
    51. Xiao, C. H., Zhuang, Z. Y., Feng, A. M. (2021). OFDI Entry Modes and Firms' Innovation: Evidence from Chinese A-Share Listed Firms, 13(14), 7922. https://doi.org/10.3390/su13147922 Go to original source...
    52. Wu, X., Wang, M., Cui, V. (2024). Are proactive outbound cross-border mergers and acquisitions effective for firms' R&D? New evidence from emerging market enterprises. Journal of International Management, 30(4), 101155. https://doi.org/10.1016/j.intman.2024.101155 Go to original source...
    53. Xie, X. M., Zeng, S., Tam, C. (2013). How does cooperative innovation affect innovation performance? Evidence from Chinese firms. Technology Analysis and Strategic Management, 25(8), 939-956. https://doi.org/10.1080/09537325.2013.823148 Go to original source...
    54. Xie, X., Wang, H. (2020). How can open innovation ecosystem modes push product innovation forward? An fsQCA analysis. Journal of Business Research, 108(4), 29-41. https://doi.org/10.1016/j.jbusres.2019.10.011 Go to original source...
    55. Yang, X. Q., Li, F., Liu, Y. (2024). Industry and regional peer effects on company innovation. Finance Research Letters, 67, 105719. https://doi.org/10.1016/j.frl.2024.105719 Go to original source...
    56. Yoon, H., Lee, J. J., 2016. Technology-acquiring cross-border M&As by emerging market firms: role of bilateral trade openness. Technology Analysis & Strategic Management, 28(3), 251-265. https://doi.org/10.1080/09537325.2015.1093618 Go to original source...
    57. Yu, L., Li, H., Wang, Z., Duan, Y. (2019). Technology imports and self-innovation in the context of innovation quality. International Journal of Production Economics, 214, 44-52. https://doi.org/10.1016/j.ijpe.2018.11.023 Go to original source...
    58. Zhang, F. (2021). EMNC technological competence creation: Key mechanisms and innovative performance. International Journal of Emerging Markets, 16(8), 1840-1865. https://doi.org/10.1108/IJOEM-10-2019-0824 Go to original source...
    59. Zhang, H., Ma, Z., Liang, X., Garrett, T. C. (2024). Antecedents and outcomes of open innovation over the past 20 years: A framework and meta-analysis. Journal of Product Innovation Management. 41(4), 793-815. https://doi.org/10.1111/jpim.12710 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return