Determinants of biopharmaceutical R&amp;D expenditures in China: the impact of spatiotemporal context

Gu, Jiafeng

doi:10.1007/s11192-021-04058-y

Cited by 13 publications

(12 citation statements)

References 73 publications

(74 reference statements)

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“…The reason is that most Chinese pharmaceutical companies are concentrated in the eastern region. The eastern region has three major technology R&D centers in the Yangtze River Delta (Shanghai, Jiangsu, Zhejiang) and the Pearl River Delta (Shenzhen, Guangzhou), and the spatial focus of domestic biomedical R&D investment has shifted to the eastern coastal area ( 52 ). The eastern region is mainly distributed along the coast, with flat terrain, convenient transportation, and sound economic development.…”

Section: Resultsmentioning

confidence: 99%

The Impact of the Consistency Evaluation Policy of Generic Drugs on R&D Investment Intensity of Pharmaceutical Companies—An Empirical Study Based on the Difference-in-Differences Model

Wei

Zhu

Qiao

et al. 2022

Front. Public Health

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In 2016, China began to execute the consistency evaluation policy of generic drugs. Many scholars believed that the policy would stimulate pharmaceutical firms to increase R&D investment with a theoretical perspective, but few have conducted empirical studies. Therefore, we conduct a difference-in-differences (DID) model and use panel data of 111 A-share listed pharmaceutical firms from 2012 to 2020 to empirically study the impact of the consistency evaluation policy of generic drugs on pharmaceutical firms' R&D investment intensity. The result shows that the policy has a significant positive impact on the R&D investment intensity of firms with chemical generics, robust under the test for parallel trend test, placebo test, and the propensity score matching and difference-in-differences (PSM-DID) test. In addition, we further analyzed the impact of this policy on the R&D intensity of pharmaceutical firms according to the heterogeneity of enterprise's operational nature, regional distribution and profitability. From the perspective of time changes and the average effect, the R&D investment intensity of private pharmaceutical firms is more affected by the policy than state-owned enterprises; the R&D investment intensity of pharmaceutical firms in the eastern region is more affected by this policy than those in the central and the western; the R&D investment intensity of high-profitability pharmaceutical firms is more affected by the policy than those with low-profitability. The consistency evaluation policy is still being implemented, and its impact on pharmaceutical firms needs to be studied from different empirical research perspectives in the future.

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Section: Resultsmentioning

confidence: 99%

The Impact of the Consistency Evaluation Policy of Generic Drugs on R&D Investment Intensity of Pharmaceutical Companies—An Empirical Study Based on the Difference-in-Differences Model

Wei

Zhu

Qiao

et al. 2022

Front. Public Health

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“…Cultivating capability is a critical construct in the progress of biopharmaceutical establishment in that it helps keep entrepreneurs afloat, attract investors, increase a company’s market share, and ensure its competitiveness in a tightly regulated industry. To make progress, a multifaceted approach has been described in the literature to include adopting high-tech manufacturing and technology transfer, skilled human resources, increased R&D spending, tailored collaboration, favorable policy frameworks, market exclusivity rights, public funding, product inclusion in public insurance schemes, and so on ( Gu, 2021a ; Uppal et al, 2021 ; Erickson et al, 2021 ).…”

Section: Discussionmentioning

confidence: 99%

“…Previously, Chinese biopharmaceutical industries have been predicted to grow in the coming decade, yielding enormous returns ( Alzahrani and Harris, 2021 ). According to a recent report, the global market share of biopharmaceutical products increased from 10% in 2010 to 25% in 2017 and it is expected to exceed 31% of all medicine sales by 2024, indicating a shift in need toward novel therapies ( Chirmule et al, 2021 ; Gu, 2021a ). The possible shift in demand for biologicals may be explained by an aging population in China with predicaments that are better managed by using biopharmaceuticals.…”

Section: Discussionmentioning

confidence: 99%

“…With all these inputs, the industry has developed significantly in the past 3 decades in magnitude and capacity, attaining the second largest biopharmaceutical market globally in 2019 ( Tripathy et al, 2020 ). Growth has been consistent; for instance, the Chinese biopharmaceutical market grew from 4.5% in 2010 to 15.3% in 2017, equivalent to a market size of 341.171 billion Chinese yuan ( Zhang and Liu, 2020 ), and it is forecast to exceed that of the United States by 2022 ( Gu, 2021b ; Distlerath, 2021) . Additionally, as of 2017, there were an estimated 800 innovative molecules in different stages of development (preclinical and clinical trials) in China.…”

Section: Introductionmentioning

confidence: 99%

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Current situation and future development of the biopharmaceutical industry in China: A mixed-method study

et al. 2022

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Introduction: The biomedical industry has grown significantly both globally and in China; however, there are still challenges. This study aimed at evaluating the biopharmaceutical sector of China, in terms of ability to innovate, current sales volume, investment, and R&D expenditure, as well as providing a case study detailing the progress and challenges of the industry in Shaanxi province.Method: A cross-sectional mixed-method study design was used to generate a comprehensive profile of the nature of biopharmaceutical innovation capacity and development in China by triangulating country-wide survey and interview data from Shaanxi province. Only biopharmaceutical companies that are currently marketing or conducting research and development were eligible for inclusion, and Shaanxi province was selected for conducting the interviews. Categorical and continuous variables were analyzed descriptively. Interviews were thematically analyzed by using NVivo version 12.Results: The analysis includes responses from 77 biopharmaceutical enterprises; the majority (36, 46.8%) are in Eastern China, followed by 26 (33.8%) in Central China. In 2018, the total sales of biological products amounted to 26.28 billion yuan, and in 2019, a slight increase was observed (30.34 billion); the amount doubled in 2020 to about 67.91 billion yuan. The top three biopharmaceutical products on sale in 2020 were Camrelizumab (5.14 billion yuan), human albumin (4.56 billion yuan), and human immunoglobulin for injection (3.78 billion yuan). Expenditure on R&D has also increased; it amounted to 1657.7 million yuan in 2018, which more than doubled in 2019 to 3572.1 million yuan and further increased to 5857.7 million yuan in 2020. Nonetheless, the progress is not uniform across all provinces, as shown from the results from Shaanxi province, because of lack of local government policies that will impact on the funding, incentives, and market share that motivate the producers.Conclusion: China’s biopharmaceutical industry has expand significantly. The increase in sales indicates that there is an increase in demand for biologicals; moreover, R&D funding is increasing. These are key indicators that influence innovation and development. However, the sector’s capacity to innovate and develop needs to be improved, particularly in the western region, where research and production are relatively weak.

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“…This method was first proposed by the sociologist Lefever (1926) and was mainly used to reveal the spatial relationship of geographic elements. Since then, it has been widely used as a method of descriptive exploration of geographic space in many fields, including the field of patent and R&D research (Gu, 2020(Gu, , 2021a.…”

Section: Standard Deviation Ellipse (Sde)mentioning

confidence: 99%

Spatial Interactions and the Commercialisation of Academic Patents: The Chinese Experience

2022

Science, Technology and Society

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Studies on academic patent commercialisation are well documented. However, spatial effects are seldom considered, which could lead to potentially misleading analytical results. This study addresses this concern by applying the spatial analysis method to investigate how university-level factors and commercialising academic patents are related. Using a comprehensive dataset of university patents from 1815 Chinese universities in 2016, we find that public research funding of universities, industrial research funding, the number of scientific research personnel, the number of monographs published, and the number of awarded achievements are positively related to the commercialisation of academic patents. However, the number of teaching and research personnel and the number of academic papers published are negatively related. There are positive spatial spillover effects in commercialising academic patents among neighbouring universities, but there will be negative spatial spillover effects in funding competition.

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Determinants of biopharmaceutical R&D expenditures in China: the impact of spatiotemporal context

Cited by 13 publications

References 73 publications

The Impact of the Consistency Evaluation Policy of Generic Drugs on R&D Investment Intensity of Pharmaceutical Companies—An Empirical Study Based on the Difference-in-Differences Model

The Impact of the Consistency Evaluation Policy of Generic Drugs on R&D Investment Intensity of Pharmaceutical Companies—An Empirical Study Based on the Difference-in-Differences Model

Current situation and future development of the biopharmaceutical industry in China: A mixed-method study

Spatial Interactions and the Commercialisation of Academic Patents: The Chinese Experience

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