Empirical Analysis on Related Factors of R&D Investment of Sub-industry of China’s Pharmaceutical Manufacturing Industry

OBJECTIVE To provide a reference for effectively enhancing the level of R&D investment of sub-industry of China’s pharmaceutical manufacturing industry. METHODS The thesis empirically analyzed the relationship between firm sizes, profitability, R&D personnel, R&D knowledge outputs, the degree of competition of enterprises, marketing demand for new products and the R&D investment of sub-industry of pharmaceutical manufacturing industry, based on 2005-2013 survey data of research and development conditions and economic conditions of sub-industry of pharmaceutical manufacturing industry and with the use of factor analysis regression. RESULTS Firm sizes, the profitability in the industry, R&D personnel, R&D knowledge outputs, the degree of competition of enterprises, marketing demand for new products were positively correlated with R&D expenditure of chemical medicine manufacturing industry and Chinese medicine industry. And firm sizes, the profitability in the industry, R&D personnel, R&D knowledge outputs, the degree of competition of enterprises were positively correlated with R&D expenditure of bio-pharmaceutical manufacturing industry, while marketing demand for new products were negatively correlated with R&D expenditure of bio-pharmaceutical manufacturing industry. CONCLUSION Expanding firm sizes, increasing the profitability, R&D personnel, R&D knowledge outputs, reasonably guiding enterprises to participate in competition, reasonably developing marketing demands of new products can significantly improve the R&D investment of sub-industry of pharmaceutical manufacturing.