A Case Study Of Group Internal Market And Enterprise Innovation On China Pharmaceutical Resources

Enterprise is an important subject of innovation,and research based on enterprise innovation has always been one of the focuses of academic attention.An enterprise group is not just a simple "physical" association of multiple enterprises.The exchange of capital,technology,personnel,etc.between enterprises can generate various wonderful "chemical" reactions within the group,which form the internal market is an important place for physical connection and chemical reaction of enterprises in the group.Previous scholars have studied the factors that affect enterprise innovation from many aspects,but few studies have started from the perspective of the internal market formed by enterprise groups.Therefore,this article supplements the factors that affect enterprise innovation to a certain extent from the perspective of the internal market mechanism of the group that affects enterprise innovation.From the perspective of application purposes and forms,the internal market of a group can be divided into internal capital markets,internal knowledge markets,and internal product markets.This article uses empirical research and case analysis as the main research methods to analyze the impact of internal capital markets,internal knowledge markets,and internal product markets on the innovative behavior of listed companies within a group member.Empirical research is conducted on pharmaceutical manufacturing companies listed on all Ashares from 2003 to 2017,to verify the impact of each internal markets on innovation of member companies in a large sample.The empirical results show that: 1.Internal capital market activities have a more significant impact on the output of one-lag-period invention and utility model patents in pharmaceutical manufacturing enterprises,while the impact on innovation willingness is mainly reflected in the current period;2.The internal knowledge market mechanism is more obvious in affecting the output of invention and utility model patents;3.The internal product market mechanism cause the one-lag-period patent output promotes the stock return of listed companies,and the patent output of other members of the group will bring patent returns to listed member companies in the group.The case study of China Resources Pharmaceutical Group shows that: 1.The knowledge sharing mechanism of China Resources Pharmaceutical Group has a significant impact on the innovation output of listed companies;2.The spillover effect of innovation returns mainly happened after one year;3.The internal capital market is not efficient in terms of innovation output,but it promotes the innovation willingness of member companies.