Regional Differences And Its Determinants Of China’s Pharmaceutical Manufacturing Industry

Pharmaceutical manufacturing industry as the researches and governments recognized one of the most potential high-tech industries has important strategic significance to stabilize the national economy growth rhythm and adjust the economic structure. According to current situation of high drug demand in China recently, it is very urgent to enhance the technological innovation efficiency of China’s pharmaceutical manufacturing industry. Simultaneously, figuring out the regional structural differences of pharmaceutical manufacturing industry is beneficial to clarify the regional development status of pharmaceutical manufacturing industry. From the angel of specialization level differences and the technological innovation efficiency between regions, therefore, the author study the regional difference of China’s pharmaceutical manufacturing industry, then analyze the determinants of the regional specialization level and the technological innovation efficiency.This study has the following five conclusions. Firstly, the specialization level of the Northeast economic zone, the Southwest and the Northwest economic zone is highest, while the Northern coast and the Eastern coastal economic zone have the lower specialization level, the rest of the economic zone in the middle. Second, there is a large gap among the regional specialization level. The specialization level of Hainan, Yunnan, Jilin is highest. Tianjin, Beijing, Shanghai, Zhejiang and Jiangsu have the lower specialization level. Third, competitive market environment and internal R&D intensity can significantly promote the specialization of labor division and production, and there is a significant negative relationship between the government support and the regional specialization index, moreover, the interaction term of external technology spillovers and absorptive capacity can significantly improve the specialization of staff division comparing with the external technology spillovers. Fourth, the overall technological of China’s pharmaceutical manufacturing industry is not high, rising. The efficiency of technological development is slightly lower than that of technological achievements transformation. There is a large gap on the technological innovation efficiency among regions. The technological development efficiency of Shandong, Tianjin, Guangdong is highest, and the technological achievements transformation efficiency of Jiangsu, Zhejiang, Shandong is highest, however, Gansu, Inner Mongolia, Hainan have the lowest technological innovation efficiency. According to two stage efficiency of each region,28provinces and autonomous regions are divided into four categories. Fifth, there are significant positive relationships between firm size, market competition degree and technological innovation efficiency, furthermore, the government’s policy support has a significant positive effect on technical development efficiency, while there is a significant negative relationship between industry performance and the efficiency of technical achievements transformation.Based on the research conclusion, the author put forward the strategy for improving regional development of China’s pharmaceutical manufacturing industry. Besides, the limitations and future research direction are listed at the end of this paper.