Research On The Impact Of Undertaking Pharmaceutical Outsourcing On The Innovation Of Chinese Pharmaceutical Enterprises

With the development of Chinese service trade,Chinese government regards outsourcing service as a key industry and always supports the industry.Pharmaceutical outsourcing service is a branch of outsourcing service,for the last decade or two,because of the following reasons:global pharmaceutival outsourcing is shifting to the asia-pacific region,China has a large number of low-cost technical personnel and so on,pharmaceutical outsourcing has become a rapidly growing industry in China.Chinese government has always attached great importance to the influence of innovation,innovation should not only be a slogan,everyone of us should take concrete actions.Chinese pharmaceutical enterprises meet a lot of problems in the process of innovation,such as China has always been a big country of generic drugs,the number of original research drugs and innovation drugs are very few,besides,the innovation level of Chinese pharmaceutical enterprises is still very weak.Therefore,Chinese government always concerns how to promote the level of innovation of Chinese pharmaceutical enterprises.Scholars hold different views on the impact of outsourcing on the innovation of pharmaceutical enterprises.Some scholars believe that undertaking outsourcing can promote the level of innovation of pharmaceutical enterprises,while others believe that undertaking outsourcing can hinder the level of innovation of pharmaceutical enterprises.Scholars who believe that undertaking outsourcing can promote the level of innovation of pharmaceutical enterprises,affirm that technology spillover effect exists in the process of outsourcing,no matter whether the contract-issuing party is voluntary or not,in the process of undertaking outsourcing,the contractor with relatively backward technical level can always learn more advanced experience from the contract-issuing party with relatively advanced technical level,technical personnel of the contractor can improve their research and development ability through doing research and development,besides,spending more on research and development will produce more research and development results,thus,in the process,the level of innovation of the contractor will be improved.Scholars who believe that undertaking outsourcing hinders innovation deny that there is technology spillover effect in undertaking simple production or outsourcing which is on the low side.This paper studies the influence of pharmaceutical outsourcing on the innovation of pharmaceutical enterprises in China from the micro level,that is,from the perspective of pharmaceutical enterprises,which undertake pharmaceutical outsourcing in China,meanwhile,from the perspective of qualitative analysis and quantitative analysis,this paper studies pharmaceutical outsourcing and the industry of pharmaceutical outsourcing in China,as well as the innovation of enterprises and Chinese pharmaceutical enterprises by using the methods of literature study,empirical analysis and case analysis.In the process of the study,empirical analysis is conducted on the base of the three-year panel data of ninety-two lisited pharmaceutical enterprises and twenty-five pharmaceutical outsourcing enterprises in China,in addition,this paper selects WuXi AppTec Co.,Ltd as a typical case for analysis.The followings are some conclusions on the influence of undertaking pharmaceutical outsourcing on Chinese pharmaceutical enterprises:(1)By comparing with pharmaceutical enterprises that do not undertake pharmaceutical outsourcing,it is found that pharmaceutical outsourcing enterprises invest more in R&D expenditure and technical personnel through undertaking pharmaceutical outsourcing,it indicates that undertaking pharmaceutical outsourcing has higher requirements for innovation input.(2)By comparing with pharmaceutical enterprises that do not undertake pharmaceutical outsourcing,it is found that,according to Chinese existing pharmaceutical outsourcing development level,there is no significant relationship between the number of patents obtained by pharmaceutical enterprises and whether they undertake pharmaceutical outsourcing,it shows that there is no significant relationship between pharmaceutical enterprises5 innovation output and whether they undertake pharmaceutical outsourcing.(3)The empirical analysis of pharmaceutical outsourcing enterprises shows that there is a significant positive correlation between technical personnel input and the scale of pharmaceutical outsourcing.It shows that technical personnel input,one of the measurement indexes of enterprise's innovation input,has a significant positive correlation with the scale of pharmaceutical outsourcing.However,according to Chinese existing pharmaceutical outsourcing development level,there is no significant relationship between R&D expenditure,the number of patent acquisition and the scale of pharmaceutical outsourcing,which indicates that there is no significant relationship between R&D expenditure input,which is the other measurement indexes of enterprise's innovation input,and the scale of pharmaceutical outsourcing,besides,there is no significant relationship between innovation output and the scale of pharmaceutical outsourcing.(4)From the case of WuXi AppTec Co.,Ltd,we know that the scale of pharmaceutical enterprises and the mode of pharmaceutical outsourcing may have certain influences on the innovation of pharmaceutical enterprises.