Asian Journal Of Social Pharmacy

Abstract: Objective To explore the relationship between salary incentives for R&D personnel and R&D investment in China’s pharmaceutical industry through an empirical analysis so as to propose suggestions for increasing more R&D investment from the perspective of stimulating R&D personnel. Methods Based on the relevant data of the China’s pharmaceutical industry in the “China High-tech Industry Statistical Yearbook” and other data from the National Bureau of Statistics from 1995 to 2018, co-integration tests was used to construct error correction models and Granger causality tests to explore the relationship between R&D personnel salary incentives and R&D investment. Results and Conclusion There is a long-term balanced relationship between the salary level of R&D personnel in China’s pharmaceutical industry and the investment of R&D. For the per capita salary of R&D personnel increases by 1 unit, the internal expenditure of R&D investment will increase by 2.245 1 units. In the short term, the per capita salary of R&D personnel has a slight negative impact on the internal expenditure of R&D investment. In addition, the salary incentives for R&D personnel have the most significant role in promoting R&D investment after five years of implementation.

Key words: pharmaceutical industry, R&, D investment, salary incentives for R&, D personnel, cointegration test