Study Of Economies Of Scale Of China's Pharmaceutical Enterprises

In the 21st century, China is trying its best to improve people's living situation, and the most important way is to construct effective medical assurance system, this goal pushes the nation's medical market into a new prosperity. Medical Industry has always been an indispensable part of a country. After years of efforts, China has developed accomplished medical manufacturing system and circulating system. In 1990,the nation's medical industry gross product was 39.2 billion RMB, and this value achieved 387.6 billion RMB in 2003,13 times bigger than the former, we can imagine the developing speed of this industry.Firstly, this paper introduces the related theories , and analyzes the relationship between medical industry's growth and its size. Then, based on those classic theories, the author analyzes in western countries, we can see what characteristics in the medical industry when they expand their scale. And to compare the domestic situation with that of abroad, the author finds the reason why domestic medical industry is still in a small size. Finally, then author gives suggestion to expand China's medical industry scale, that is: To strengthen scientific research fund by united giant companies together, and through proper acquisitions.