Asian Journal Of Social Pharmacy

Abstract: Objective To study the relationship between export orientation and research and development (R&D) investment so as to provide suggestions and references for improving the R&D investment level and innovation capabilities of pharmaceutical industry due to the progress of globalization and the continuous development of export trade of China’s pharmaceutical industry. Methods The relevant data of China’s pharmaceutical industry from 2001 to 2016 was selected to establish an error correction model based on the co-integration theory, and then the Granger causality test was conducted to determine the relationship between the export orientation and R&D investment of China’s pharmaceutical industry in different regions. Results and Conclusion It is found that the export orientation of the pharmaceutical industry in different regions has a significant negative impact on the investment of R&D. Among them, the middle region has the greatest impact, followed by the eastern and western regions. The export orientation of the pharmaceutical industry in the middle region has a lag effect on R&D investment, and the lag phase is two years.

Key words: pharmaceutical industry, export orientation, R&D investment, co-integration analysis