R&D Expenses and Operating Performance in Pharmaceutical Industry

With the development of economic globalization, the R&D activities of pharmaceutical companies can not only improve their business performance, but also enhance their core competitiveness in the industry, reflecting the development potential and future value of the enterprise to some extent. Taking the pharmaceutical industry as an example, the paper emphatically studies the selection of 133 pharmaceutical listed companies. Through empirical analysis, the relationship between R&D input intensity and corporate performance is established. It is concluded that there is a significant positive correlation between research and development expenses and operating performance of pharmaceutical companies. The greater the R&D input intensity of pharmaceutical companies, the higher the company's operating performance. Therefore, pharmaceutical companies need to spend more on R&D, adjust the investment level in this area, and propose a reasonable budget plan to deepen the positive impact of R&D investment.

Business performance; R&D investment intensity; Pharmaceutical industry

Chang Liu, Xuemeng Guo and Zhuojun Wang. R&D Expenses and Operating Performance in Pharmaceutical Industry. 2019 Asia-Pacific Forum on Economic and Social Development (APFESD 2019). 2019, Vol.2: 214-219.