Study On Financial Support For Pharmaceutical Industry

The pharmaceutical industry is the fastest growing and also one of the most promisinghigh-tech industries throughout the world. In recent years, pharmaceutical manufacturingindustry is showing a trend of rapid growth, along with the rapid expansion of market capacity,it is becoming one of the new fulcrums of world economic growth, and this attracts the greatattention of the government and academia.In the context of this opportunity, China’s pharmaceutical industry has not only usheredin an unprecedented opportunity for development, but also experienced a huge challenge. Onone hand, there exists a considerable gap between china’s pharmaceutical manufacturingindustry and developed countries’. If we take this opportunity to realize leap-forwarddevelopment of China’s pharmaceutical manufacturing industry, we can narrow the huge gapbetween the pharmaceutical manufacturing industry of developed countries and China’s, evenmore, there may be some areas to catch up, it can drive the transformation of China’seconomic growth, make our country to occupy a favorable position in the internationalcompetition in future, and improve our international competitiveness. On the other hand, theadvantage of China’s pharmaceutical enterprises which make use of local protectionism andtariffs protection is being lost gradually, if we can’t take this opportunity to realize thetransformation and upgrading of the pharmaceutical industry, the gap will become biggerbetween domestic and foreign pharmaceutical industry, it may appear that our countrymedicine market is monopolized by foreign company, and this will not only bring fataldisaster to our national medicine enterprise, but also cause our people’s health level greatlydepend on developed countries which provided drugs and medical technology, finally this willaffect our national security and strategic target realizationNowadays, the improvement of pharmaceutical companies’ innovation level and thefinancing difficulties of the pharmaceutical enterprise shave become the two most importantbarriers which restrict the development of China’s pharmaceutical manufacturing industry.However, what role is financing played in the development of the pharmaceuticalmanufacturing industry at all? How to solve the financing difficulties of the pharmaceuticalmanufacturing industry? With these questions to be answered, the author commences theexploration and research.As there are differences among medicine manufacturing level of development andfinancial development level, the financing way for pharmaceutical manufacturing industrywill play a different role and influence in different region. So if we treat China’s overall as awhole sample data, the conclusions will exist certain deviation. The author based on four bigpharmaceutical economic circle in the Yangtze river delta medicine economic circle, take thefinancing way in four provinces: Shanghai, Jiangsu, Zhejiang and Anhui which form the mainYangtze river delta pharmaceutical manufacturing as the starting point, by the collecting alarge number of home and abroad about the research of the development of thepharmaceutical manufacturing literature material,and also consider the previous researchresults carry on the summary and analysis of the theoretical basis, using the integrated use of comparative analysis, statistical analysis and empirical analysis method to focus on theanalysis of the difference influence in the three financing way:government financial support,enterprise self-raised funds and financial institution loans，in Yangtze river delta regionmedicine manufacturing. The results show that the three different means of financing havediverse effects upon the development of the pharmaceutical industry in this region.Government funding and corporate self-financing foreign direct investment have a positiveimpact on the development of the pharmaceutical industry in this region, among four meansof financing, self-financing demonstrates the greatest influence and foreign direct investmentthe second, the loans from financial has a influence followed the foreign direct investment. Indifferent periods, different means of financing also play different roles in the pharmaceuticalmanufacturing industry, at the same time; different means of financing has different impactsupon the development of the internal provinces and cities of the Pan-Yangtze River Deltaregion pharmaceutical manufacturing industry.