Regional Comparative Study on the Relationship Between Export and R&D Capital Investment in China Pharmaceutical Manufacturing Industry

OBJECTIVE To analyze the differences between the export trade activities of the pharmaceutical manufacturing industry in the eastern, central and western regions of China, and to improve the R&D investment level and innovation ability of the pharmaceutical manufacturing regions in China. METHODS Based on the cointegration theory, the error correction model was established and the Granger causality test was carried out to explore the relationship between the two and the direction of their influence. RESULTS The export trade activities of pharmaceutical manufacturing in the eastern, central and western regions of China had a positive impact on the R&D investment. Generally, after 1, 2, 3 years of R&D, the impact of investment growth was more significant; in addition, this effect was sorted by region:the western region was greater than the eastern region, the central region was minimal. SUGGESTIONS Relevant departments and enterprises should attach importance to regional differences, according to local conditions, rational use of export trade activities on the development of R&D funds to promote the positive role in order to enhance the level of investment in pharmaceutical manufacturing R&D.