Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China

Research Article

Empirical Study on the correlation between Research and Development Investment and Business Performance in Traditional Chinese Medicine Industry

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  • @INPROCEEDINGS{10.4108/eai.17-6-2022.2322805,
        author={Kexin  Sun and Kaixin  Wu and Xue  QIU},
        title={Empirical Study on the correlation between Research and Development Investment and Business Performance in Traditional Chinese Medicine Industry},
        proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China},
        publisher={EAI},
        proceedings_a={ICIDC},
        year={2022},
        month={10},
        keywords={research and development; business performance; traditional chinese medicine},
        doi={10.4108/eai.17-6-2022.2322805}
    }
    
  • Kexin Sun
    Kaixin Wu
    Xue QIU
    Year: 2022
    Empirical Study on the correlation between Research and Development Investment and Business Performance in Traditional Chinese Medicine Industry
    ICIDC
    EAI
    DOI: 10.4108/eai.17-6-2022.2322805
Kexin Sun1,*, Kaixin Wu1, Xue QIU1
  • 1: Business school of Jiangnan University
*Contact email: 571989241@qq.com

Abstract

The traditional Chinese medicine (TCM) industry is one of China’s unique industries that have international comparative advantages, which gain key support from the government. Financial data of 42 listed TCM companies on the A-share market from 2012 to 2019 are picked out as sample data, and correlation analysis, multiple linear regression analysis, and lag analysis are conducted. Research shows that research and development (R&D) investment of TCM companies in the A-share market is positively correlated with business performance. Therefore, it is suggested that TCM companies should increase investment in R&D, strengthen industry-university-research collaboration, and that the government should strengthen their protection of intellectual property and promote the sustainable and healthy development of the TCM industry.