The impact of the centralized volume-based procurement policy on Chinese pharmaceutical manufacturing firms' R&D investment: A difference-in-differences approach.

ABSTRACT: Centralized drug procurement is a common practice worldwide to relieve the healthcare burden and promote high-quality development in the pharmaceutical industry. However, scholars have not yet reached an agreement on whether centralized procurement can facilitate the innovation activities of pharmaceutical firms. China's centralized volume-based procurement (CVBP) implemented in 2018 provides an ideal quasi-natural experiment to evaluate the effect of centralized procurement on the R&D investment of the firms. Drawing data from listed manufacturing firms in China's A-share market (2015-2020), the results from a difference-in-differences analysis with different model specifications indicate that the CVBP significantly promotes the pharmaceutical manufacturing firms' R&D investment. Moreover

SUBMITTER: Qiu F 

PROVIDER: S-EPMC11698415 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature