Analysis on the Technological Synergism Effect of Cross-border Mergers and Acquisitions

The enterprises lacking of advanced technology in developing countries could obtain the comparatively advanced techniques, well-known brands and other intellectual property rights through the cross-border M&A activities in developed countries. The R&D will be reinforced after the M&A, which will promote the enterprise to master the core technology and achieve the aim of technological synergism at last. The technological synergism effect can be reflected by four different but complementary economic benefits, named as scale economy, scope economy, speed economy and space economy. However, owing to the international macro-environment, the capabilities of the M&A enterprise and the characteristics of the skills and techniques, the technology-seeking M&A might not bring out the prospective adverse technological spill-over effect inevitably.