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Independent research and development, technology accumulation and innovation performance: Evidence from China’s pharmaceutical manufacturing industry

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  • Su Wang
  • Qiang Liu
  • Yuwen Chen

Abstract

Technology accumulation plays a vital role in research and development (R&D) activities. This paper used technology accumulation as the threshold variable to construct a dynamic panel threshold model to explore the technology accumulation threshold effect of independent R&D on innovation performance of China’s pharmaceutical manufacturing industry over the period 1995~2019. The results show that the independent R&D of China’s pharmaceutical manufacturing industry had a significant promotion effect on innovation performance. However, it is constrained by the level of technology accumulation, showing a significant double threshold effect of technology accumulation. A moderate level of technology accumulation was more conducive to independent R&D to drive innovation performance, while lower or higher technology accumulation will weaken independent R&D promotion on innovation performance. This study provided insights for policymakers and managers in making effective innovation strategies.

Suggested Citation

  • Su Wang & Qiang Liu & Yuwen Chen, 2022. "Independent research and development, technology accumulation and innovation performance: Evidence from China’s pharmaceutical manufacturing industry," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-16, April.
    • Handle: RePEc:plo:pone00:0266768
    DOI: 10.1371/journal.pone.0266768
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    References listed on IDEAS

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    1. Lin, Bou-Wen & Lee, Yikuan & Hung, Shih-Chang, 2006. "R&D intensity and commercialization orientation effects on financial performance," Journal of Business Research, Elsevier, vol. 59(6), pages 679-685, June.
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    3. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
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    Cited by:

    1. Jiang, Zhenyu & Wang, Zongjun, 2024. "Impel or impede? Revealing the effect of the integration into innovation ecosystems on the development of SMEs," Technological Forecasting and Social Change, Elsevier, vol. 199(C).

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