Research Study on the Relationship between Human Capital and R&D Investment of Chinese Pharmaceutical Manufacturing Based on Granger Causality Test

OBJECTIVE To find out the causal relationship between human capital and R&D investment of Chinese pharmaceutical manufacturing, and provide suggestions for future R&D investment. METHODS Researching the influence of human capital and R&D investment in the methods of Granger Causality Test, based on 1995-2014 data of R&D personnel accounted and R&D investment of Chinese pharmaceutical manufacturing. RESULTS When the lag intervals was 1, 2, 3, R&D human capital was the Granger cause of R&D investment, R&D human capital per rose 1%, R&D investment increased by 0.420%. On the other hand, R&D investment was not the Granger cause of R&D human capital. CONCLUSION To formulate corresonding incentive policies, enhance investment in human capital for increase R&D investment and improve the ability of innovative drugs research and development, in order to drive the sustainable development of Chinese pharmaceutical manufacturing.