Dynamic Mechanism Of Impelling The Pharmaceutical Companies Developing New Drugs Persistently

Research and development of new drugs is the basis of survival and development of pharmaceutical companies, but in China pharmaceutical industry, pharmaceutical c -ompanies always produce generic drugs or imitate drugs that have been supplied by o -ther companies, this behavior make the Chinese pharmaceutical enterprises face with survival and development crisis, so how to motivate the companies to research and develop new drugs, becomes the urgent problem of the China's pharmaceutical industry. So, we chose this subject.By theoretical studying, with the pharmaceutical industry' historical developme -nt and the behaviors of current pharmaceutical companies, we have established a driving mechanism model that can been used to analyze why some pharmaceutical companies doing much in the research and development of new drugs and supply the majority of new drugs in the World, while others not. It includes four parts, the host of new durgs' R&D, the driving factors, the relationship between driving factors and the function of the dynamic mechanism.In aspect of choosing driving factors, we have considered the particularity of R&D of new drugs, especially making organizational structure, the tradition of corporation technology, and social needs as driving factors, which was less involved in the past research . we have used psychology theory and prospect theory creatively, and making the driving mechanism model including three sub-mechanisms, and they effect each other. Finally, the model is applied to the Chinese pharmaceutical enterprises, by interviews and survey, we get some data. Analysing this data, we know the mechanism model can been used to explain why our pharmaceutical companies have less power to doing new drugs'R&D, and the driving factors that we have chose are also right. In the end, we get some conclusions about the China Pharmaceutical companies: the government and the advancement of technology play less driving to the company, particularly in the 'buster-bomb' drugs'R&D; and at the same time, the companies' culture have not worked, the driving factors of entrepreneurs and internal incentive mechanism also give less forces, all these must be improved in the future. So on the basis of the analysis, we give some suggestions from both the government and companies.