The Study On The Influencing Factors Of The Development Of Traditional Chinese Medicine Industry

Traditional Chinese medicine (TCM) has a long history in China. It also has a perfect medical theoretical system. In recent years, with the support of national policy, it has achieved great development. But at the same time, it also faces many problems. This paper uses the theory of industrial organization to make studies on the influencing factors of the development of Traditional Chinese Medicine industry and the internationalization problem, reveals the main effective sites of Industrial Chain and find out the key influencing factors.Based on the four main production factors of the Traditional Chinese Medicine industry such as land, herbal resources, manpower and capital, having made corresponding research on the present industry and the influences on industrial organizations. Thus revealing the land and the herb resources is the core influencing factor for the development of the TCM industry. Human is the synergistic production factor. Capital plays a role in influencing TCM industry by affecting the land and herbal resources. Production factors is internal factors for the development of the industry, the reasonable configuration directly affect the healthy development of the industry and the market performance. Through analyzing the current situation of cultural factors, points out that the theory of TCM has guiding effect on the development of TCM industry, Affects the industrial structure. We also discussed the developing direction of TCM theory. Based on the current status and effect analysis of existing traditional industrial policies and drug control policies, reveals the policies exists from the industry actual situation. Too many departments participate in the formulation of polices, Industry policies have poor effect on the industry. Combining the analyzing results, putting forward some constructive suggestions for the making and effectiveness evaluating for the future TCM industry polices. Based on the analyzing of knowledge factors of TCM industry, finding out that the stasis of intellectual property protection of TCM and the emerging degree with modern scientific knowledge will restrict the development of TCM industry. Based on analyzing present internationalization situation of the TCM, revealing the existing problems, and putting forward reasonable proposals. The internationalization of TCM industry is just one of the means to achieve the development, not the goal. Finally, through analyzing of all influencing factors, indicating the production factor is the main influence factors for the development of TCM industry. According to the interaction relationship between all influencing factors, putting forward the corresponding proposal.Making research on the development of TCM industry with industrial organization theory is creative, also very difficult. If we want to reveal industry actual appearance, also need to do more in depth for research works.