Research on the Influence of Government R&D Funding and Enterprise R&D Investment on the Innovation Efficiency of Pharmaceutical Industry

Abstract

Objective To study the effect of government R&D funding and enterprise R&D input on innovation efficiency of China’s pharmaceutical industry. Methods Based on the inter-provincial panel data of China’s pharmaceutical industry from 2009 to 2019, the stochastic frontier analysis method was used to study the influence of government R&D funding and enterprise R&D input on the innovation efficiency. Results and Conclusion With 1% increase in government R&D funding, the innovation efficiency of enterprises will increase by 0.122%. When R&D investment increases by 1%, innovation efficiency will increase by 0.169%. Both government R&D funding and enterprise R&D investment promote the innovation efficiency of pharmaceutical enterprises, but the increase of enterprise R&D investment contributes more to the improvement of pharmaceutical innovation efficiency.

Keywords

government R&D funding / enterprise R&D investment / pharmaceutical industry / enterprise innovation efficiency / stochastic frontier analysis

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