Impact of National Drug Price Negotiation policy on the innovation performance of biopharmaceutical industry in China
Bibliographic Data
| ID | 22080651 |
|---|---|
| Authors | Yulu Zhu (Nanjing Medical University), Jiazhen Zhu (0000-0002-6013-6140, Nanjing Medical University), Xingyuan Gao (0000-0002-7497-3302, Nanjing Medical University), Yi Sun (0000-0001-9618-6097, Nanjing Medical University), Hongyu Yan (Nanjing Medical University), Wenmin Du (Nanjing Medical University, corresponding author), Ying Wang (0000-0003-3126-1134, Soochow University, corresponding author), Xin Li (0000-0002-3425-8566, Nanjing Traditional Chinese Medicine Hospital, corresponding author) |
| Year | 2025 |
| Volume | 13 |
| Pages | 1705030-1705030 |
| Publication date | 2025-11-04 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Frontiers in Public Health (JOURNAL) |
| Journal identifiers | ISSN: 2296-2565 • E-ISSN: 2296-2565 |
| Publisher | Frontiers Media SA (PUBLISHER • CH) |
| DOI | 10.3389/fpubh.2025.1705030 |
| PMID | 41262702 |
| OpenAlex | W4415839271 |
| Language | EN |
| Citations received | 1 |
| References cited | 27 |
Background: The National Drug Price Negotiation (NDPN) policy is a key institutional reform in China that reshaped drug market access rules. While its effects on drug prices and accessibility are well documented, evidence on firm-level innovation performance remains limited. This study evaluates the impact of the 2019 NDPN on the innovation performance of Chinese biopharmaceutical firms. Methods: We used quarterly panel data from 96 listed biopharmaceutical firms from 2018 Q1 to 2023 Q4. A difference-in-differences (DID) model combined with propensity score matching (PSM-DID) was employed to identify causal effects. Innovation performance was measured by R&D investment, patent application count, and overall growth score, with firm- and time-fixed effects as well as financial controls included. Robustness was assessed through parallel trend and placebo tests. Results: DID estimates show that firms with NRDL-included drugs significantly increased R&D investment (coefficient = 0.733) and patent application count (coefficient = 0.362). Overall growth score showed no short-term change. PSM-DID confirmed these findings, with R&D investment (coefficient = 0.693) and patent application count (coefficient = 0.272) both significantly improved. Conclusion: The NDPN policy significantly enhanced firms' innovation performance by increasing R&D investment and patent applications, though its effect on overall growth remains limited in the short term. These findings provide firm-level evidence that NDPN strengthens innovation incentives in China's biopharmaceutical industry
Biopharmaceutical · China · Drug industry · Incentive · Intellectual property · Negotiation · Biotechnology and Related Fields · Innovation Policy and RD · Pharmaceutical Economics and Policy
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| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |