Volume 15, Number 2

Effectively Connect Acquired Technology to Innovation Over a Long Period


Akira Nagamatsu1, Yuji Tou2 and Chihiro Watanabe3, 1Tohoku University, Japan, 2Tohoku Gakuin University, Japan, 3Tokyo Institute of Technology, Japan


IT (Information and Communication Technology) companies are facing the dilemma of decreasing productivity despite increasing research and development efforts. M&A (Merger and Acquisition) is being considered as a breakthrough solution. From existing research, it has been pointed out that M&A leads to the emergence of new innovations. Purpose of this study was to discuss the efficient ways of acquisition and to resolve the dilemma of productivity decline by clarifying how the technology obtained through M&A leads to the creation of new innovations. Hypothesis 1 was that the technology acquired through M&A is utilized for innovation creation, Hypothesis 2 was that the acquired technology is utilized over a long period of time, and Hypothesis 3 was that a long-term utilization has a positive impact on corporate performance. The results, using sports prosthetics as a case study and using patents as a proxy variable, confirmed all the hypotheses set. We have revealed that long-term utilization of technology obtained through M&A is effective for creating new innovations.


Merger and Acquisition; Innovation; Patent; Forward Citation; Sports Prosthetic