Unlocking Innovation in Technological Acquisitions: Inventor-Level Technological Overlap and Assimilation

OVERVIEW:Technology-driven acquisitions are widely used to accelerate innovation, yet many fail to translate acquired expertise into sustained performance. Post-acquisition innovation therefore hinges on whether target inventors reengage in learning and collaboration within the acquiring firm. This study examines how technological overlap between target and acquirer inventors shapes these learning outcomes. We distinguish two pathways: knowledge assimilation, which captures individual learning from the acquirer’s technical base, and capability assimilation, which reflects the collaborative development of shared routines. Using inventor-level data from US high-technology acquisitions, we uncover nonlinear effects of technological overlap on both pathways. Moderate overlap facilitates learning and collaboration, whereas excessive overlap creates redundancy and rivalry that discourage engagement. Structural integration enhances knowledge assimilation by improving access to expertise but constrains capability assimilation when comparison pressures intensify. Together, these findings show that realizing innovation gains requires integration strategies tailored to target inventors’ perceptions and behaviors.