Research On The Technological Innovation-based Growth Strategy Of Chinese Medicine Manufacturing Industry

Since the beginning of reform and opening up, China's pharmaceutical industry has been considerably developed. It has got high-speed growth of manufacture and marketing. However, China's pharmaceutical industry has few innovations.Such a situation is detrimental to the healthy development of China's pharmaceutical industry. This paper is an attempt to analyse the present situation and problems of weak technological innovation of China's pharmaceutical industry by using the theory of technological innovation and industrial economics, and propose countermeasures.China's current study of the pharmaceutical industry focus on the direct reasons of weakness of technological innovation ,such as less capital investment and lack of creative talents. But there is a lake of in-depth study in its underlying causes of the problems that exist in the industrial organization .The paper researches the development status and characteristics of the global pharmaceutical industry, argues that, on one hand, the rapid development of the global pharmaceutical industry benefits from the continued expansion of world pharmaceutical market needs,on the other hand, it benefits from the strong investment in R & D and technological innovation. World pharmaceutical industry is a real technical innovation-driven manufacturing industries. But,the rapid growth of China's pharmaceutical industry was largely attributed to the expansion of domestic demand. It is a typical example of the expansion of scale-model of development.The paper use Solow residual value method to calculate the technological progress role in China's pharmaceutical industry economic growth . Calculation results are also analyzed. China's pharmaceutical industry is a weak technical innovation industries.Then,the paper use technology innovation theory and industrial organization theory to analyse the root causes of weak technological innovation in China's pharmaceutical industry, mainly concentrated in industrial organization, basic research and other causes.The thesis amid the root causes of weak technological innovation in the pharmaceutical industry, propose governments and enterprises measures to enhance the ability in technological innovation. The proposal focused on the government's policies on industrial organization and corporate policies encouraging innovation.