| The global economic recession, industrial pollution, water scarcity, greenhouse effect, the food crisis, environmental protection and other issues make the global biotechnology sprouting, Among them, more because of agricultural backwardness, declining birthrate, aging population, chronic disease prevalence, medical expenditures increase, chemical synthesis Swiss drug reduction, the lack of botanicals such issues as prescription drugs, and consumer behavior, national health insurance, preventive medicine, basic human needs, eating habits and other global trends in the evolution, so that the Chinese herbal medicine biotech industry processes.In addition, the World Health Organization (WHO) also promote the Traditional and Alternative Medicine, and the Kuznets curve for Taiwan has also entered a critical turning point, there is an upward trend in the consolidation, so to accelerate the technological progress of the Chinese medicine industry chain is also an effective method to reduce the uneven distribution; in particular, traditional agriculture combined with traditional Chinese medicine and modern biological technology into a knowledge of agriculture which is the strategic focus of the smallholder countries to enhance the international competitiveness of agriculture, therefore, Chinese herbal medicine biotechnology industry which is one of the agricultural biotechnology strategic industry is outstanding. However, the Financial Advisory Group of Taiwan’s highest administrative department pointed out that the administrative departments strategically to promote the biotechnology industry in nearly three decades, but the Chinese herbal medicine needs and industrial development were still hysteresis at its18th meeting, in December2009.Based on the economic analysis of general industrial technology progress is focus on the market side and the technology side of supply, and the crop processing industry is a key industry for the pharmaceutical industry chain, its changes of raw material and product to reflect the upstream agricultural supply and downstream demand for pharmaceutical market trends, therefore, to clarify Taiwan herbal medicine biotechnology industry supply and demand, the key sub-industries and elements, the promising products and technologies and other issues, first of all, we turn to the market demand-side, to explore the trend of consumer, product and factor prices, investment and other projects.Secondly, according to a market economy in the supply, demand and market equilibrium, and the supply (demand) rule in the rules of human behavior show goods supply (demand) and their prices into the same (reverse) relationship to the changes, and macroeconomics or microeconomics emphasis on the technological advances to control economic growth, therefore, we have established the profit function model of the normalized quadratic form, to estimate the production factor demand chain of the Taiwan Chinese herbal medicine biotechnology industry and the output contributions and benefits of the production factor, the price elasticity of supply, the price elasticity of the production factor demand, the tendency of the progress of technical efficiency for the four sub-industries in the Taiwan Chinese herbal medicine biotechnology industry, and according to the changes of the element structure, technical efficiency, the market price, to investigate the direction of technological development and the key elements of the overall Taiwan Chinese herbal medicine biotechnology industry.After empirical analysis, this study found three things:The first point, when the Adjusted R Square of the empirical analysis for the regression model up to0.909-0.984, we can improve the degree of interpretation and ensure the consistency of conclusions and without bias.The second point, results in a combination of the maximum estimated coefficients estimated by industry supply and factor demand functions, to come to the factor demand chain of industry, exposing the elements of relation with each other and highlighting the product structure and the output causal.The third point, compare the estimates of the net profit contribution, the supply contribution, changes in trends of demand, to come to a state of flux for the main factors inputs and outputs, exposing the input efficiency for the main factors and highlighting the lack of marketing, R&D, production and other operations.After summarizing the empirical conclusions, specific development proposals are as follows:As far as the market, based on the trend of consumption, investment, product demand and factor demand, the product development direction of Chinese herbal medicine biotechnology industry is the medicinal plant food with low-cost advantage and health functions.As far as the supply and technology, based on the estimate of the element demand chain, the main cause for affecting overall profitability of Chinese herbal medicine biotechnology industry was health food oversupply, so the health food industry should put in more the medicinal botanicals, with less glucose.In addition, based on the estimate of the output contributions and benefits of the production factor, the price elasticity of supply, the price elasticity of the production factor demand, the tendency of the progress of technical efficiency, in order to avoid the four sub-industries reduced to a small profit on behalf of industry, the short-term reference to foreign technology, the long term, enhance R&D efficiency and investment, to develop their own technology, specific development proposals for the four sub-industries of Chinese herbal medicine biotechnology industry are as follows:1. A key sub-industries of the Chinese herbal medicine biotechnology industry in Taiwan-health food industry should first play the superiority of more alternative uses of production inputs, low sensitivity for the changes of production costs and high marginal productivity of factor, the low ratio for factor cost to total cost, high efficiency of factor allocation, short product development, to put in more the medicinal botanicals and enhance the input efficiency, with less glucose, but also to promote the strategy with automation, education and training to enhance input technology of the pharmaceutical industry labor. Secondly, the marketing strategy should focus on the products with the small price elasticity of demand, to take prices to increase profitability, and finally transition to the production of the medicinal botanical health food, and the further integration of traditional Chinese medicine theory and clinical records, to seek the treatment planning to promote the general health for adjusting the product formulations to highlight the efficacy, in order to improve their scale of contribution for the approximate net profit, supply changes in trends, technological change trends, output contribution of net profit for the medicinal botanical and other disadvantages.2. The traditional food industry should put in more the marketing and medicinal botanicals less food artificial, with less the traditional food industry labor. In particular, marketing need to take the price-cutting strategy to increase demand for products with the greater price elasticity of demand. 3. The biotech drugs industry should promote the strategy with automation, education and training to enhance input technology of the pharmaceutical industry labor, with less glucose and chemical raw materials. This means that with both a posterior segment of the commercial mass production economies of scale and the major pharmaceutical company strategic alliance. This means that alliance strategy with the major pharmaceutical companies and transforme into the professional groups engaged only in the preceding biotech drug development.4. The traditional pharmaceutical industry with economies of scale should put in more the medicinal botanicals, with less the pharmaceutical industry labor, glucose and chemical raw materials. In particular, the pharmaceutical industry labor accounting for the cost of bulk had rather room for improvement.Now the face of the global development of Chinese herbal medicine biotechnology industry focused R&D investment and technological progress, capital advantage of the large pharmaceutical companies in the United States, FDA’s monopoly of a single prescription market and other environmental, consideration of Taiwan’s SMEs, industry structure, R&D backward, technological progress hysteresis and other conditions, the recommendations of development strategy for Taiwan Chinese herbal medicine biotechnology industry are as follows:1. The short-term, health food industry should combine with agriculture and traditional Chinese medicine theory, to seek the treatment planning to promote the general health, diversification and a small amount of production for compound Chinese medicine food, to play the advantage with economies of scope, to cultivate a mature market demand.2. The long term, appointed by the traditional food industry for mass production play the advantage with economies of scale, bring up traditional Chinese medicine parallel with the mainstream Western medicine and making the pharmaceutical biotechnology industry chain propagated by the upstream biotechnology in agriculture, the midstream health food industry, downstream of the health care system, etc.In this paper, we made the economic analysis of the biotechnology industry of Chinese herbal medicine which was the only way to simultaneously meet the characteristics of the three major industries in Taiwan’s Executive Yuan six emerging industries:the biotechnology, refined agriculture, medical care etc. Expectations of the demand of medicinal plants for downstream processing industries, will promote the upstream agricultural land with biotechnology planting the high cash crops-medicinal plants, to promote high-tech agricultural development. With the cross bridge project, promote the growth of the agricultural and the biotechnology industry of Chinese herbal medicine, to promote people’s health, to make cross-strait business cooperation and the global distribution. |
PDF Full Text Request