The Difference Of Innovation Effect Between Cross Border M&A And Greenfield Investment

At present,the world economy remains sluggish,aggregate demand is weak,trade protectionism and Cold War mentality are resurgent,and the spread of COVID-19 has brought about a new round of economic crisis.The Chinese economy is recovering rapidly from the epidemic.At home,China is faced with problems such as replacing old drivers of growth with new ones,profound structural adjustment and slowing economic growth.Meanwhile,the global economic recession caused by the spread of the epidemic abroad has had a great impact on China’s export demand.The dual impact on the national economy both at home and abroad forces China to adhere to the strategy of innovation-driven development and use innovation to promote development.As Chinese enterprises stride overseas,whether OFDI activities under different modes can improve the technology and innovation ability of local companies in the home country and how the innovation effect of OFDI activities under different modes is different has become a research hotspot in the field of international economy and international management.In this paper,based on comprehensive Bloomberg,Zephyr,cvsource multiple database for enterprise transnational merger and acquisition of data,such as the list of foreign investment enterprises(institutions)and the state intellectual property office of patent data,won the 2007-2015 new database containing information related to listed manufacturing companies,through the propensity score matching method respectively for cross-border m&a and greenfield investment enterprises matching appropriate foreign direct investment in enterprise as the control group,at the same time to match the right greenfield investment enterprise transnational merger and acquisition as control group,Using double difference model under different modes of foreign direct investment,cross-border m&a and greenfield investment to the enterprise the influence of the number of an application for a patent for invention,compared to greenfield investment and transnational m&a impact on enterprise innovation,the results indicate that both cross-border m&a and greenfield investment companies in the event of an application for a patent for invention after the foreign direct investment behavior were significantly improved,namely enterprise different modes of foreign direct investment behavior were significantly improve the level of the enterprise innovation,and cross-border m&a effect to the promotion of enterprise patent number more than greenfield investment;At the same time,taking transnational M&A enterprises as the experimental group and greenfield investment enterprises as the control group,it is found that the increase in the number of patent applications of enterprises after transnational M&A is significantly higher than the change in the number of patent applications of greenfield investment enterprises.The results remained robust after replacing explained variables,matching methods,and placebo tests.In addition,through the lag test,it is found that the innovation promotion effect of cross-border M&A and greenfield investment is still sustainable in the years after the investment,and the innovation effect of cross-border M&A is still higher than that of greenfield investment in the duration period.Through the research of influence mechanism,it is found that enterprises will increase R&D expenditure to promote innovation activities after cross-border M&A.For greenfield investment,enterprises will directly increase the number of patent applications by expanding the market and accumulating the feedback information related to product demand after greenfield investment.