Abstract
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.
Highlights
Technical progress and technology mergers and acquisitions are significant sources of technology progress and value realization, which lead to improving corporate innovation capabilities and competitiveness [1]
Summary and Conclusion is research utilized game theory and selected three variables of spillover effect, research and development efficiency, and cost of mergers and acquisitions to establish a duopoly model. is research utilized the three variables to establish the equilibrium profit expression of independent research and development and technology mergers and acquisitions. is research explored the problem at the two stages of research and development investment and production quantity with an objective of profit maximization
Our results show that if the cost of technology mergers and acquisitions is high, the incentive to invest in research and development increases, and the incentive to engage in mergers and acquisitions activity decreases. e complexity of the research and development strategy decision-making process is further increased by the objectivity of the cost of mergers and acquisitions
Summary
Technical progress and technology mergers and acquisitions are significant sources of technology progress and value realization, which lead to improving corporate innovation capabilities and competitiveness [1]. Prior studies rarely involved the mechanism of independent research and development and technology mergers and acquisitions strategic decisionmaking In other words, they neglected how to choose and coordinate between independent research and development and technology mergers and acquisitions. This research has three research objectives: (1) to explore the chief factors that influence the two research and development decisions of independent research and development and technology mergers and acquisitions; (2) to construct a duopoly enterprise game model under the condition of complete information and, from the perspective of equilibrium profits, to explore the advantages and decisionmaking mechanisms of independent research and development and technology mergers and acquisitions; (3) in the context of the actual development of Chinese companies, to inform suitable research and development decisions and provide credible theoretical and practical support for the choice of research and development strategies. Considering the two stages of research and development and production, this research introduces the three variables of spillover effect, cost of merger and acquisition, and research and development efficiency to establish a dynamic game model of research and development decision. is research uses these variables to establish a balanced profit expression between independent research and development and technology mergers and acquisitions, examining the choice and coordination between independent research and development and technology mergers and acquisitions strategies, exploring the influence of various factors on research and development strategy decision, and providing a theoretical basis for research and development strategy decisions
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