On SFA-based Technological Innovation Efficiency Of Listed Pharmaceutical Manufacturing Companies In China

This research explains the development difficulties in pharmaceutical industry. Combining with the attentions China’s government attaches to the pharmaceutical industry and the high-tech characteristics and rapid development of pharmaceutical industry, it proposes the subject of studying the technological innovation efficiency in pharmaceutical industry. The measurement and comparative analysis of an enterprise’s technological innovation efficiency have tremendous significance in improving its technological innovation management and technological innovation efficiency, which provides significant fuels to consolidate enterprise’s dominant position in innovation, establishing an enterprise-based and market-oriented innovation system that integrates production, teaching and researching together, enhancing the enterprise’s technological innovation capacities, accelerating the transformation of economic growth pattern and strengthening enterprise’s competitiveness in its industry.After considerable reading lotsof papers, based on stochastic frontier analysis(SFA), this research selects the relevant input-output indexes of the50listed companies from China’s pharmaceutical industry and measures their respective technological innovation efficiency according to the indexes of research and development personnel and capital investment as well as business income. The following conclusions can be reached with analysis:Technological innovation efficiency value of the listed companies from China’s pharmaceutical industry proves to be low relatively; however the efficiency value enjoys constant increases and the gap between enterprises shows a decreasing tendency.There are no conspicuous relations between technological innovation efficiency and enterprise scale.Research and development personnel and investment concerning technological innovation bring about different technological innovation output elasticities for enterprises with different scales. In large-scale enterprises, the technological innovation output elasticity of research and development expenses is bigger than that of research and development personnel, while in small-scale ones, the case proves to be opposite.According to the dozens of problems in China’s pharmaceutical industry, on the basis of this research, several countermeasures to improve technological innovation efficiency from the perspectives of government, enterprise and enterprise’s conscience are proposed. Given the research results, aimed at enterprises with different scales, measures should be taken to improve the technological innovation efficiency of pharmaceutical industry so that the general technological innovation level of pharmaceutical enterprises can be promoted, which will contribute to a virtuous circle of technological innovation in the industry and guarantee a high-speed, stable and healthy development of national economy.