Industry-University Research Alliances, absorptive capacity and corporate technological diversification: evidence from listed companies of the ChiNext market

This paper studies whether and how IURAs affect corporate technological diversification. Taking the ChiNext-listed companies that are both active in IURAs and innovation activities as our research objects, we analyzed the mechanisms of IURAs and their effect on corporate technological diversification based on the International Patent Classification information of new inventions. Our results, using propensity score matching and difference-in-differences regressions, show that IURAs can promote corporate technological diversification. Moreover, such effects are further proved using a dynamic analysis model. Furthermore, the absorptive capacity of the firm has a moderating effect on technological diversification after participating in the IURAs. This paper empirically advances our understanding of IURAs in the emerging markets and has meaningful policy implications for how governments and firms can deepen innovation.