Research on the Impact of Research and Development Subsidies on Technological Innovation of Pharmaceutical Companies

Pharmaceutical enterprises' technological innovation exhibits significant externalities, and relying solely on market regulation can lead to market failure, necessitating intervention and guidance from regulatory authorities. This paper based on data from pharmaceutical companies listed on the stock market from 2009 to 2019, employs a panel fixed effects model to analyze the impact of R&D subsidies on technological innovation in pharmaceutical enterprises. The results indicate that R&D subsidies can promote the input of technological innovation in pharmaceutical enterprises, with a greater incentive effect on private enterprises than on state-owned enterprises. Therefore, regulatRoy authorities can appropriately increase subsidies for pharmaceutical enterprises and ensure that the subsidized funds are genuinely used for corporate technological research and development. At the same time, it is important to assist pharmaceutical enterprises in expanding channels for R&D funding and attract more social capital to be invested in corporate research and development. This study provides a reference basis for incentivizing technological innovation in pharmaceutical enterprises.