A research and development decision model for pharmaceutical industry: case of China

Abstract

This paper evaluates prospective technology areas, development strategies, and various innovation resources in China's pharmaceutical sector through the use of a hierarchical decision model. The results indicate that although domestic SMEs are the major preferred innovation alternative, it is followed closely by foreign MNCs. The sensitivity analysis indicates that the effectiveness of policy decisions are influenced by certain high technology areas. Recombinant therapeutic proteins, recombinant vaccines, and monoclonal antibody technologies are identified as the major areas that will influence the priority of innovation resources. The research crafts a research framework to formulate innovation strategies in dealing with the uncertainties of technology development and policy decisions in the biopharmaceutical industry.

The Current Status, Trend, and Development Strategies of Chinese Biopharmaceutical Industry With a Challenging Perspective

“…The Chinese biopharmaceutical industry started in the early 1980s (Chan & Daim, 2018;Yan, 2014;Zhou & Li, 2013). In 1983, the Ministry of Science and Technology of China established the first national bioengineering development center.…”

“…In 1989, China approved the first genetically engineered drug produced in China. From 1986 to 1995, the state invested in three centers of research and development (R&D), including those of genetic engineering drugs and biological products and vaccines, specializing in the research and development of bioengineering products and systematically implementing industrialization (Chan & Daim, 2018;Yan, 2014;Zhou & Li, 2013). Between 1996 and 2000, the Ministry of Science and Technology of China specially formulated the "1035 Plan" to effectively promote the research and development of new drugs.…”

Cleaner Production Quality Regulation Strategy of Pharmaceutical with Collusive Behavior and Patient Feedback

“…ese violations not only damage the quality of drugs, but also expand carbon emissions [2]. According to Chan and Daim [3], China's pharmaceutical companies have been facing problems related to staffing shortages and quality management. As drugs account for approximately half of the total health spending in China [4], it was undeniable that drugs are an important part of health care.…”