Asian Journal Of Social Pharmacy

Abstract: Objective To study the possible relationship between the output of new products in China’s pharmaceutical industry and the investment in research and development (R&D), and to provide a theoretical basis for the decision-making of relevant enterprises and institutions. Methods The econometric software Stata 14 was used to perform unit root test on the relevant data. Then, a co-integration regression equation was established after stabilization, which was analyzed through co-integration test (E-G two-step method). Results and Conclusion There is a long-term equilibrium and short-term error correction relationship between the output of new products and the investment of R&D funds in China’s pharmaceutical industry. During the lagging periods from 1 to 6, R&D investment is the Granger reason for the output of new products. The investment of R&D funds has a positive effect on the output of new products and the effect is significant. Therefore, more investment should be made in R&D to enhance the output of new products.

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