An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets

Anderson, J.; Sutherland, D.; Severe, S.

doi:10.1016/j.ibusrev.2015.01.007

An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets

Anderson, J.; Sutherland, D.; Severe, S.

Authors

J. Anderson

Professor Dylan Sutherland dylan.sutherland@durham.ac.uk
Professor

S. Severe

Abstract

We use event study methodologies to analyze trends in home and host country patent applications of Chinese MNEs that acquire strategic asset-rich developed market businesses. Our results show the domestic market patents of Chinese MNEs rise significantly in the wake of such acquisitions, while those of the acquired target do not significantly change. These results hold for different ownership classes. In light of current theoretical debates, we discuss the possible motivations for such acquisitions by Chinese MNEs and the reasons for the observed patenting performance in both domestic and target businesses. We argue acquisition of codified strategic assets (such as patents) for the purpose of imitation and exploitation in the domestic Chinese market context provides one plausible explanation for our results.

Citation

Anderson, J., Sutherland, D., & Severe, S. (2015). An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets. International Business Review, 24(5), 758-771. https://doi.org/10.1016/j.ibusrev.2015.01.007

Journal Article Type	Article
Acceptance Date	Jan 28, 2015
Online Publication Date	Mar 5, 2015
Publication Date	Oct 1, 2015
Deposit Date	Feb 7, 2015
Publicly Available Date	Sep 5, 2016
Journal	International Business Review
Print ISSN	0969-5931
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	24
Issue	5
Pages	758-771
DOI	https://doi.org/10.1016/j.ibusrev.2015.01.007
Keywords	Chinese outward foreign direct investment, Event study, Innovation, Strategic asset seeking.
Public URL	https://durham-repository.worktribe.com/output/1436996

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Copyright Statement
NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, 24, 5, October 2015, 10.1016/j.ibusrev.2015.01.007.