Asian Journal Of Social Pharmacy

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.

Key words: government R&D funding, enterprise R&D investment, pharmaceutical industry, enterprise innovation efficiency, stochastic frontier analysis