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Development of a New Methodology to Identity Promising Technology Areas Using M&A Information

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  • Jinho Choi

    (School of Business, Sejong University, Seoul 05006, Korea)

  • Yong Sik Chang

    (Department of IT Management, Hanshin University, Gyeonggi-do 18001, Korea)

Abstract

In this paper, we suggest a new methodology to identify promising technology areas by analyzing merger and acquisition (M&A) information. First, we present decision models for estimating the velocity and acceleration of M&A transactions to identify promising areas based on M&A information. Second, we identify the promising technology areas with longitudinal analyses of M&As over the entire period. Third, cross-sectional analysis is proposed to determine which technology areas are more promising through a relative comparison among technology areas within the IT sector for a specific period. The main significance of our research is that it is a prior data-based analytic method based on M&A transaction information to identify the growth of industry and technology. We hope this study will provide insights for R&D (Research&Development) policymakers and investment firms as a new approach that complements previous methods in exploring promising industry or technology areas.

Suggested Citation

  • Jinho Choi & Yong Sik Chang, 2020. "Development of a New Methodology to Identity Promising Technology Areas Using M&A Information," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5606-:d:383562
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    1. Jinho Choi & Nina Shin & Yong Sik Chang, 2021. "Strategic Investment Decisions for Emerging Technology Fields in the Health Care Sector Based on M&A Analysis," Sustainability, MDPI, vol. 13(7), pages 1-20, March.

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