Comparison of external R&D and internal R&D: Based on the perspective of S&T development of China’s pharmaceutical manufacturing industry

Di Wu, Su Wang, Senhao Chang, Guiyu Lian and Yuwen Chen

PLOS ONE, 2022, vol. 17, issue 6, 1-13

Abstract: Purpose: The science and technology (S&T) innovation in China’s pharmaceutical industry has entered a bottleneck. The choice between external and internal research and development (R&D) has become a significant challenge for S&T development. To provide scientific suggestions for companies to choose an R&D strategy and enhance S&T development, we analyzed and compared the impacts of two R&D strategies on S&T output. Methods: We selected the data related to China’s pharmaceutical manufacturing industry from 2000 to 2019, established regression equations by the E-G two-step method, and used the VAR model for impulse responses and variance decompositions to research the relationship between two R&D strategies and S&T output. Results: There is a stable long-term equilibrium relationship between two R&D strategies, including external and internal R&D, and S&T output in China’s pharmaceutical manufacturing industry. When internal R&D increases by 1%, S&T output increases by 0.7382% with a 5-year lag. When S&T output increases by 1%, external R&D increases by 2.0749% with a 2-year lag. Conclusion: Compared with external R&D, internal R&D can boost S&T output.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0270271 (text/html)
https://journals.plos.org/plosone/article?id=10.13 ... 70271&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0270271

DOI: 10.1371/journal.pone.0270271

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().