This paper takes listed manufacturing companies as research samples, uses relevant data from 2009 to 2014, uses data matching method and difference-in-difference to empirically investigate the impact of cross-border mergers and acquisitions on enterprise innovation performance, and further conducts grouping tests on the impact from the two dimensions of absorption capacity of enterprise technology and cultural distance of host country. The results show that cross-border mergers and acquisitions have promoted the innovation capability of Chinese manufacturing enterprises, and the improvement effect has a certain degree of sustainability. Comparatively speaking, enterprises with strong technology absorption capacity can improve their innovation capability more greatly due to cross-border mergers and acquisitions. The closer the culture of the host country is, the stronger the effect of cross-border mergers and acquisitions on the improvement of enterprises' innovation capability will be. Therefore, China should actively encourage manufacturing enterprises to improve their innovation capability by means of cross-border mergers and acquisitions. As to “technology absorption and digestion” and “merger and acquisition”, enterprises should pay attention to both timeliness and sustainability. At the same time, the enterprises should also improve their own technology absorption capacity and do a good job in cultural integration of host countries, so as to improve their innovation capability.
