The Case Analysis Of Distribution Of Taiji Group Technology Capital

In recent years, foreign brands have closed factories in China. The surface reason is that the price of human capital in China has risen too fast. Primarily, Chinese enterprises lack of own independent technology and technological assets. So it slows their technological progress and the improvement of production mode. Based on nearly ten years of R&D investment in our country, it has grown rapidly and ranked the third place in the world in2011. However, the high R&D investment should not have access to the benefits. With the booming of world economy, the rapid development of high technology and new business pattern of production modular makes that the western developed countries have solved the outsourcing of manufacturing and declined manufacturing resources investment in product process. This is a new challenge to China economy development.Using Taiji Group as case to research on distribution of Chinese pharmaceutical enterprises technology capital, it can better achieve the goal of studying. This paper mainly studies the inside and outside distribution of pharmaceutical enterprises technology capital to find the problems, sum up experience and put forward suggestions. It finds that the technology capital investment is not high in pharmaceutical industry, but Taiji Group’s performance is better. R&D investment is incoherent obviously, and the efficiency of resources integration and utilization is lower, especially the waste of currency capital seriously. This shows that there is a connection between all kinds of capital, as technology is inseparable from the people, financial and material support. As long as the enterprise technology capital inside and outside traditional capital are maintained in a appropriate proportion, it can maximize the effectiveness of each kind of capital.The main structure of this paper consists of five parts. First, introduction part introduces the problem and significance of research background, research methods and ideas. Second, literature review and discussion part classifies the scholars’ researches and gathers two aspects related literatures of technology capital distribution from the independent research and external import. Third, case description part briefly introduces Taiji Group, points out the main problems of case and the hypothesis and specification for following analysis. Fourth, case analysis part uses the resource endowment structure and factor capital theory to discusses the mutual distribution of capital investment. In concrete, according to the financial data and outside environment, the technology capital of Taiji Group calculates and analyzes the internal and traditional capital, compared with main large pharmaceutical enterprises, to find out the crux of the problem and think about the strategy decision for technology. Fifth, conclusion and suggestion part points that the relative value of Taiji Group technology capital could be a leader level in this industry, including its patents and know-how. It has obvious advantages in group, In addition, there are three listed companies which separately take charge of R&D, production and sales. This paper thinks pharmaceutical enterprises had better develop from the combination of technology import and independent R&D gradually to the independent R&D based on their reality and outside environment. Of course, because of data processing and the limit of corporate annual report disclosure, this paper has some problems to hope more improved in the future.