IDEAS home Printed from https://ideas.repec.org/p/cme/wpaper/1206.html
   My bibliography  Save this paper

The rising Chinese pharmaceutical industry: local champions vs global players

Author

Listed:
  • Francesca Spigarelli

    (Università degli Studi di Macerata)

  • Hao Way

    (Beijing Normal University)

Abstract

This paper is an exploratory study on main features and challenges of the Chinese pharmaceutical market. Dramatic changes in the market are due both to the Government policies, changing consumer habits and behaviour, and to the growing competition at firm level. From a demand side perspective, consumptions of pharmaceutical products are booming thanks to a combined effect of economic growth, aging population, urbanization and health system reforms. Key forces shaping the demand are examined in the chapter, with a specific attention to health care reforms as well as to new habits and confidence of Chinese people towards the Western medicine. In this regard, import and export trends, consumption, and expected evolution of the market are examined. From a supply side perspective, two main trends can be highlighted: the increasing interest of foreign investors, and the effort of Chinese pharmaceutical firms to compete in the national market. To better understand the ongoing changes we look at market characteristics, key players, as well as trends and motivation of inward FDI to China are examined. On the basis of this general picture, the paper focuses on IP related aspects, to understand who are the main actors of patenting trends (foreign vs local firms) and for which kind of products patents are registered (raw materials vs basic products vs drugs). Analyzing patent trends and the role of Chinese vs Western firms, we try to define how China is taking its role and position into the national and – potentially - international pharmaceutical market.

Suggested Citation

  • Francesca Spigarelli & Hao Way, 2012. "The rising Chinese pharmaceutical industry: local champions vs global players," Working Papers 1206, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
  • Handle: RePEc:cme:wpaper:1206
    as

    Download full text from publisher

    File URL: http://193.205.129.80/repec/cme/wpaper/cmetwp_06_2012.pdf
    File Function: First version, 2012
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
    2. Reichman, Jerome H, 1998. "Securing Compliance with the Trips Agreement after US v India," Journal of International Economic Law, Oxford University Press, vol. 1(4), pages 585-601, December.
    3. Sell,Susan K., 2003. "Private Power, Public Law," Cambridge Books, Cambridge University Press, number 9780521819145, September.
    4. Sell,Susan K., 2003. "Private Power, Public Law," Cambridge Books, Cambridge University Press, number 9780521525398, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandra Perri & Vittoria Giada Scalera & Ram Mudambi, 2014. "Exploring the international connectivity of Chinese inventors in the pharmaceutical industry," Working Papers 29, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bayer, Patrick & Marcoux, Christopher & Urpelainen, Johannes, 2013. "Leveraging private capital for climate mitigation: Evidence from the Clean Development Mechanism," Ecological Economics, Elsevier, vol. 96(C), pages 14-24.
    2. Anne Roemer-Mahler, 2013. "Business conflict and global politics: The pharmaceutical industry and the global protection of intellectual property rights," Review of International Political Economy, Taylor & Francis Journals, vol. 20(1), pages 121-152, February.
    3. Emilie Cloatre & Robert Dingwall, 2013. "“Embedded regulation:” The migration of objects, scripts, and governance," Regulation & Governance, John Wiley & Sons, vol. 7(3), pages 365-386, September.
    4. Suma Athreye & Lucia Piscitello & Kenneth C. Shadlen, 2020. "Twenty-five years since TRIPS: Patent policy and international business," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 315-328, December.
    5. Iain M. Cockburn & Jean O. Lanjouw & Mark Schankerman, 2016. "Patents and the Global Diffusion of New Drugs," American Economic Review, American Economic Association, vol. 106(1), pages 136-164, January.
    6. Daniel Berliner & Aseem Prakash, 2012. "From norms to programs: The United Nations Global Compact and global governance," Regulation & Governance, John Wiley & Sons, vol. 6(2), pages 149-166, June.
    7. Madison Cartwright, 2021. "Business conflict and international law: The political economy of copyright in the United States," Regulation & Governance, John Wiley & Sons, vol. 15(1), pages 152-167, January.
    8. Suzuki, Mao, 2020. "Profits before patients? Analyzing donors’ economic motives for foreign aid in the health sector," World Development, Elsevier, vol. 132(C).
    9. Jean‐Frédéric Morin & Madison Cartwright, 2020. "The US and EU’s Intellectual Property Initiatives in Asia: Competition, Coordination or Replication?," Global Policy, London School of Economics and Political Science, vol. 11(5), pages 557-568, November.
    10. Tristan Auvray & Cédric Durand & Joel Rabinovich & Cecilia Rikap, 2021. "Corporate financialization’s conservation and transformation: from Mark I to Mark II," Review of Evolutionary Political Economy, Springer, vol. 2(3), pages 431-457, December.
    11. Haunss, Sebastian, 2013. "Enforcement vs. access: wrestling with intellectual property on the internet," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 2(2), pages 1-9.
    12. Richard Pomfret & Keith Maskus, 2014. "The New Globalisation of Intellectual Property Rights: What's New This Time?," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 54(3), pages 262-284, November.
    13. El-Bialy, Nora, 2010. "The role of institutions within the IPR enforcement: The case of de facto software protection in Egypt," Discussion Papers on Strategy and Innovation 10-02, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    14. Leonhard Dobusch & Sigrid Quack, 2013. "Framing standards, mobilizing users: Copyright versus fair use in transnational regulation," Review of International Political Economy, Taylor & Francis Journals, vol. 20(1), pages 52-88, February.
    15. Park, June & Chung, Eunbin, 2021. "Learning from past pandemic governance: Early response and Public-Private Partnerships in testing of COVID-19 in South Korea," World Development, Elsevier, vol. 137(C).
    16. Blandine Laperche, 2008. "Stratégies d’innovation des firmes des sciences de la vie et appropriation des ressources végétales : processus et enjeux Innovations strategies of firms in life science and appropriation of vegetal r," Working Papers 189, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    17. Amandine Bled, 2009. "Business to the rescue: private sector actors and global environmental regimes’ legitimacy," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(2), pages 153-171, May.
    18. Jandhyala, Srividya, 2015. "International and domestic dynamics of intellectual property protection," Journal of World Business, Elsevier, vol. 50(2), pages 284-293.
    19. Christopher May, 2006. "Escaping the TRIPs’ Trap: The Political Economy of Free and Open Source Software in Africa," Political Studies, Political Studies Association, vol. 54(1), pages 123-146, March.
    20. Oran Young, 2004. "Institutions and the Growth of Knowledge: Evidence from International Environmental Regimes," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 4(2), pages 215-228, June.

    More about this item

    Keywords

    China; pharmaceutical industry; patents;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cme:wpaper:1206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Donato Iacobucci (email available below). General contact details of provider: https://edirc.repec.org/data/cmettit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.