Shared funding of R&D in small and medium-sized innovative enterprises: the case of Chinese biomedical industry
https://doi.org/10.22394/2410-132X-2023-9-4-51-60
Abstract
This study delves into the corporate governance challenges confronted by small and mediumsized innovative biomedical enterprises in the context of equity financing. Its objective is to provide valuable recommendations for the successful implementation of such financing. In order to address issues such as imperfect equity structure, inadequate financial audit systems, and low stability of the core team during equity financing, a range of improvement measures are proposed. These measures comprise optimizing internal management mechanisms, establishing an efficient R&D organizational structure, implementing practical incentive mechanisms for R&D enterprises focused on benefits, and enabling technical experts to actively engage in company ownership structures. Equity financing plays a vital role in resolving the difficulties faced by small and medium-sized innovative biomedical enterprises, particularly in fostering the development of innovative pharmaceutical products within the biomedical R&D field. Thus, it has a positive impact on effectively advancing China’s biomedical industry.”
About the Author
Y. Sun
Institute of Economics, Mathematics and Information Technology, Russian Presidential Academy of National Economy and Public Administration; Pfiker Biopharma
China
China
Yanhui Sun – DBA candidate and PhD candidate in Economic Science, Chief Executive Officer
Web of Science Researcher ID: JPX-9139–2023
Moscow, Prospect Vernadskogo, 82, build. 1
Central Plaza, No.18 Harbour Road, Wanchai District, Hong Kong
References
1. Cao Y. Venture capital collaboration is an important financing method for pharmaceutical enterprises // China Pharmaceutical Industry. 2005. № 14(11). P. 16–16.
2. Chen K. A. Study on SME’s Financing Difficulties and Financial Support. Huazhong University of Science and Technology (Wuhan), 2004
3. Ding Jinxi, Ma Yilin. On the policy of innovative drug venture capital in the United States and its enlightenment to our country // Shanghai Pharmaceutical. 2012. № 33(11). P. 41–44.
4. Gao Jian, Cheng Ming. On incentive and restraint mechanism and corporate governance structure // Journal of Shanxi University of Finance and Economics. 2002. № 2. P. 39–39.
5. Gao B J. Research on innovative drug development strategy of pharmaceutical enterprises in our country // Medicine & Health: Abstract Edition. 2016. № 11. P. 205–205.
6. Ge Dongsheng. Demand forecasting and inventory management of pharmaceutical enterprises – A case study of Tianjin SmithKline Corporation. Peking University, 2012.
7. Guo Dandan, Feng Guozhong. Empirical analysis on influencing factors of R&D investment of large and medium-sized pharmaceutical manufacturing enterprises in China // China Pharmaceutical Affairs. 2015. № 29(5). P. 466–470. 8. Huang J., Luo Y., Chen Z. Research on venture capital in biomedical high-tech field // Journal of Hunan Medical University (Social Science Edition). 2002. № 2. P. 29–32.
8. Jin T. The role of Chinese enterprises in pharmaceutical technology R&D – and on the role of government
9. funds and venture funds in it // Chinese Journal of Pharmaceutical Technology Economics and Management. 2007. № 1(3). P. 49–51.
10. Li Sh. Prevention and Control of Private Equity Fund Management Risk. North China Electric Power University (Beijing), 2008.
11. Lin J. W. Research on the impact of new medical reform policy on the development of pharmaceutical industry in our country // China Health Industry. 2018. № 6. P. 181–182.
12. Pu L. C. Research on internal control problems of private SMEs // Economic Review. 2008. № 5. P. 114–116.
13. Qiang Fu. The application of effective motivation in enterprise human resource management // The Economist. 2012. № 284(10). P. 225–226.
14. Tang X. J., Song H. M. On our country listed company governance structure present situation and perfect countermeasure // Harbin University of Commerce Journal (Social Science Edition). 2011. № 1. P. 31–34.
15. Wu L., Xu L. The role of venture capital in SME loans in China // Research in International Business and Finance. 2020. № 51(C). doi:10.1016/j.ribaf.2019.101081.]
16. Yang M. Z., Ji F. S. Private equity and its application in the financing of technology-based SMEs // Modern Management Science. 2010. № 7. P. 34–36.
17. Zhao Fang. Comprehensive analysis of venture capital // Guangdong Economy. 2001. № 65(6). P. 34–37.
Review
For citations:
Sun Y. Shared funding of R&D in small and medium-sized innovative enterprises: the case of Chinese biomedical industry. Economics of Science. 2023;9(4):51-60. https://doi.org/10.22394/2410-132X-2023-9-4-51-60
Views:
260
Email this article 