Empirical Studies On R&D Investment And Business Performance Of Pharmaceutical Industry In China

The development of pharmaceutical manufacturing industry is very important,because it is related to the health of people.As a knowledge-intensive and capital-intensive industry,pharmaceutical manufacturing is driven by R&D,the correlation between R&D input and performance of corporation not only provide reference with the distribution of resource for enterprises,but also give advice about industry policy for the country.This research focus on three sub-industries of pharmaceutical manufacturing industry,they are chemical pharmaceutical industry,biopharmaceutical industry and Chinese medical industry.Base on the balance panel data from 2012 to 2017 of pharmaceutical manufacturing industries to find the correlation between R&D input and business performance.In two angles to measure business performance,they are the profitability and the development of corporation.Create the linear relationship model and the inverse-U shape model,choose the suitable model as the data of the sub-industry to regress,and then take robust testing for the significant results,finally,get these conclusions:1 In the chemical pharmaceutical industry,R&D input is positive related with profitability and development of corporation and two year lag-effect exist.The process of R&D input affect the profitability of corporation is like this: R&D input impose negative influence on the profitability in current and the next year,while R&D input has positive correlation with the profitability two years later,and then the positive influence become less and less effective.2 As a new industry,biopharmaceutical companies are less than chemical pharmaceutical companies and Chinese medical companies.The data is least,the correlation between R&D input and profitability or development of corporation is not significant,but the potential of biopharmaceutical industry is huge.3 The correlation between R&D input and profitability of corporation is inverse-U shape in Chinese medical industry,the lag-effect is not significant.The correlation between R&D input and development of corporation is not significant.Base on the two results,the impetus of R&D input is insufficient in Chinese medical industry,maybe some reforms are needed to translate R&D input into performance of business.In sum,the R&D investment of pharmaceutical manufacturing industry in China is lesser;the three sub-industries are all developing from 2012 to 2017.The chemical pharmaceutical industry grows steadily and R&D input has positive influence on business performance.The potential of biopharmaceutical industry is huge.The growth of Chinese medical industry is decline slowly and the impetus of R&D is insufficient,maybe some reforms are needed.