Stability and optimisation of financing strategies for blue pharmacy cultivation in China

Tong-Kun Qu, Tong-Xin Li and Ye-Cheng Wang

Socio-Economic Planning Sciences, 2025, vol. 101, issue C

Abstract: ‘Blue pharmacy’ refers to the rich medicinal resources nurtured in the oceans, whose cultivation is crucial for promoting the prosperity of the marine biomedicine industry, and enhancing human health and wellbeing. However, blue pharmacy cultivation requires more patient capital than other industries, severely limiting its development. This study analyses the funding problems at the initial stage of the creation of blue pharmacy, and proposes corresponding solutions using gaming and system dynamics. The results show that: (1) In an iterative battle between the three stakeholders, the actions of the blue pharmacy industry and government are largely influenced by the decisions of financial institutions, who choose their own strategies based on the blue pharmacy industry's actions. The industry's profitability does not change the government's determination to continue supporting the development of blue pharmacy. (2) A non-linear dynamic investment scheme is more conducive for the government's macro-control of the blue pharmacy industry, which not only solves the problem of the system's oscillatory fluctuations but also enables it to reach the ideal equilibrium state more quickly. (3) Regardless of whether financial institutions finance blue pharmacy, the amount of government investment influences the strategic choices of both the blue pharmacy industry and government. Crucially, it also indirectly influences financial institutions' strategic choices by influencing the government's strategic choices. Therefore, the amount of government investment is crucial in influencing the system's balance, which this study illustrates using simulations. Finally, our findings not only provide decision support and theoretical guidance for the decision-making in the financing system for the blue pharmacy industry, but also provide strategic insights for the government to formulate effective incentive policies for the development of blue pharmacy.

Keywords: Blue pharmacy; Financing strategies; Evolutionary game theory; System dynamics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:101:y:2025:i:c:s0038012125001259

DOI: 10.1016/j.seps.2025.102276

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