Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game

This research introduces the three variables of spillover effect, research and development efficiency, and cost of mergers and acquisitions as the chief factors affecting independent research and development and technology mergers and acquisitions based on a two-stage game theory model of research a...

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Main Authors: Fenglian Wang, Zongming Zhang, Hua Zhao
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2021/7300128
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author Fenglian Wang
Zongming Zhang
Hua Zhao
author_facet Fenglian Wang
Zongming Zhang
Hua Zhao
author_sort Fenglian Wang
collection DOAJ
description This research introduces the three variables of spillover effect, research and development efficiency, and cost of mergers and acquisitions as the chief factors affecting independent research and development and technology mergers and acquisitions based on a two-stage game theory model of research and development strategies. Using these three variables, this research explains the selection of independent research and development or technology mergers and acquisitions according to profit maximization. Based on the theory model, this research finds that costs of mergers and acquisitions and spillover effects play a significant role in research and development decisions. In addition, excessive costs of mergers and acquisitions can increase research and development expenditures, therefore reducing profit and affecting the organizational operation and development. Therefore, when the costs of mergers and acquisitions exceed a certain level, companies will abandon technology mergers and acquisitions and choose independent research and development; and a higher knowledge spillover effect reduces the costs of independent research and development, therefore increasing profit. In conclusion, given certain costs of mergers and acquisitions, a higher spillover effect helps business organizations to choose independent research and development strategies.
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institution OA Journals
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publishDate 2021-01-01
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series Discrete Dynamics in Nature and Society
spelling doaj-art-12a40c87bdce43f79a4dafa6212cc43a2025-08-20T02:02:12ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/73001287300128Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage GameFenglian Wang0Zongming Zhang1Hua Zhao2School of Economics and Management, Anhui Polytechnic University, Wuhu 241000, Anhui, ChinaSchool of Economics and Business Administration, Chongqing University, Chongqing 40030, ChinaSchool of Economics and Business Administration, Chongqing University, Chongqing 40030, ChinaThis research introduces the three variables of spillover effect, research and development efficiency, and cost of mergers and acquisitions as the chief factors affecting independent research and development and technology mergers and acquisitions based on a two-stage game theory model of research and development strategies. Using these three variables, this research explains the selection of independent research and development or technology mergers and acquisitions according to profit maximization. Based on the theory model, this research finds that costs of mergers and acquisitions and spillover effects play a significant role in research and development decisions. In addition, excessive costs of mergers and acquisitions can increase research and development expenditures, therefore reducing profit and affecting the organizational operation and development. Therefore, when the costs of mergers and acquisitions exceed a certain level, companies will abandon technology mergers and acquisitions and choose independent research and development; and a higher knowledge spillover effect reduces the costs of independent research and development, therefore increasing profit. In conclusion, given certain costs of mergers and acquisitions, a higher spillover effect helps business organizations to choose independent research and development strategies.http://dx.doi.org/10.1155/2021/7300128
spellingShingle Fenglian Wang
Zongming Zhang
Hua Zhao
Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
Discrete Dynamics in Nature and Society
title Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
title_full Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
title_fullStr Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
title_full_unstemmed Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
title_short Independent Research and Development or Technology Mergers and Acquisitions? Decision Mechanisms of Research and Development Strategies in a Two-Stage Game
title_sort independent research and development or technology mergers and acquisitions decision mechanisms of research and development strategies in a two stage game
url http://dx.doi.org/10.1155/2021/7300128
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