Abstract:    How firms effectively respond to the negative impacts of technological gaps is not only related to the overall level of technological development in society but also serves as a key factor for the stability of capital markets and the coordinated development of the economy. However, it remains unclear how firms with technological disadvantages can achieve strategic catchup. To address this issue, this study empirically examined the sample A-share listed companies from Shanghai and Shenzhen stock exchanges over the period from 2010 to 2020 using a fixed-effects model. The findings are as follows: (1) technological gaps have a negative impact on firm value, but strategic alliances can effectively mitigate this impact; (2) the mitigating effect of strategic alliances is particularly pronounced in high-tech industries; (3) the mechanisms through which strategic alliances mitigate the technological gap include reducing cash flow risks, compensating for a lack of technological innovation experience, and overcoming deficiencies in specialized assets; and (4) the mitigating effect of strategic alliances is more significant when the external information environment is poor and internal control efficiency is high. The findings of this study will enrich the research on technological development from the perspective of firm collaboration through strategic alliances and provide theoretical guidance for technologically disadvantaged firms to implement catch-up strategies.

Key words: technology gap, strategic alliance, firm collaboration, firm value