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