Abstract

This paper examines the impact of the acquired knowledge base on the subsequent innovation performance of acquiring firms in the domestic technological acquisition in China. This study provides and tests a framework relating the acquired knowledge base and absorptive capacity of firm innovation performance. Based on Poisson regression with 39 cases’data, the result shows that both the absolute size and relative size of acquired technology are positively affected innovation performance. In addition, the absorptive capacity measured by the size of acquiring technology base and R&D input density have the positive impacting trend to the relationship between acquired technology and innovation performance.