China and European Innovation

Corporate Takeovers and their Consequences

Datos Bibliográficos

ID7744151
AutoresJeffrey Henderson, Mike Hooper
Año2021
Volumen52
Número5
Páginas1090-1121
Fecha de publicación2021-09-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaDevelopment and Change (JOURNAL)
Identificadores de la revistaISSN: 0012-155X • E-ISSN: 1467-7660
EditorialWiley (PUBLISHER • GB)
DOI10.1111/dech.12684
OpenAlexW3204008773
IdiomaEN
Citas recibidas2
Referencias citadas38

While Europe has become the principal venue for new Chinese foreign direct investment, little of it has resulted in new (greenfield) production or research and development facilities. The bulk of this investment has been used to take over European companies, outstripping Chinese acquisitions in North America by 800 per cent. While some takeovers have been of insurance, sports, luxury goods and similar non‐strategic companies, many have been of innovation‐driven firms. This article explores the reasons for the preference — by Chinese state‐ and privately owned companies — for takeovers of this type of European company. Its working hypothesis is that there are correspondences between the continuing weaknesses in China's innovation system and the fact that Chinese companies have been partially shut out of the US and Japan, leading to the focus on cutting‐edge technological acquisitions in Europe. While these correspondences cannot be proven empirically, the article suggests that, given the available evidence and the context in which it arises (particularly the Chinese government's ‘Made in China 2025’ industrial agenda), the balance of presumption must be that these are key dynamics driving China's European acquisitions programme. Amongst its conclusions, the article suggests that Chinese corporate takeovers arguably problematize the future of European innovation and competitiveness and thus the technological robustness of Europe's economic development

Business · China · Context (archaeology) · Economics · Economy · Foreign direct investment · Government (linguistics) · International trade · Market economy · Political science · Presumption · Asian Industrial and Economic Development · Global Economic and Social Development · Global trade and economics