Innovation and Development of Biomedical Industry Clusters in Jiangsu Province: A Technological Perspective on Leading Enterprises

Abstract

AbstractBackground: The vibrant state of the biopharmaceutical industry in Jiangsu Province, China, showcasing its strategic focus and significant growth. The province has implemented various policies to accelerate high-quality development, emphasizing innovation, intelligent and digital transformation. The industry, organized around biological drugs, chemical drugs, traditional Chinese medicine, and medical equipment, has become a national leader, with impressive revenue and output values. The study identifies research gaps related to the role of patents in the industry, highlighting the need for a micro-level analysis, better linkage between patents and economic outcomes, exploration of innovation capabilities, consideration of patent quality, and understanding temporal and geographical specificities. The research aims to address these gaps by assessing the impact of patent indicators at national, provincial, and enterprise levels, providing insights for policymakers and industry stakeholders to foster innovation and growth in the biomedical sector in Jiangsu Province. Methods: This research employs a comprehensive three-tiered analysis to explore the intricate interplay between innovative indicators and economic output in the biomedical industry. The study spans the national, provincial, and enterprise levels, encompassing five diverse countries, all 31 provinces in mainland China, and the top ten pharmaceutical companies globally, domestically, and in Jiangsu Province. In collaboration with the Jiangsu Intellectual Property Protection Center, the study compiles an extensive dataset. This dataset, meticulously curated from publicly available and non-sensitive patent data, includes variables such as patent applications, authorizations, PCT applications, and application growth rates. Economic data, including GDP and market values, is sourced from reputable institutions like the World Bank, the National Bureau of Statistics of China, and Torreya, a renowned biomedical industry innovation consulting company. Inclusive approach ensures a comprehensive representation for a cohort of 30 biomedical enterprises. The study extracts pertinent patent information into STATA for detailed analysis. The economic outcomes are measured through GDP at the national and provincial levels and market value at the enterprise level. The study meticulously examines the nuances of GDP computation and derives the 2022 national GDP data from the World Bank and provincial GDP data from the Bureau of Statistics of the People's Republic of China. Market value, or Market Capitalization, is defined and measured based on the total value of shares issued by listed companies, mainly in US dollars, with data sourced from Torreya, China Securities Regulatory Commission, and the Information Registration Center of the State Administration for Market Regulation. The biomedical patent indicators, comprising patent application numbers, PCT application numbers, patent authorized numbers, and patent in-force numbers, are systematically analyzed at national, provincial, and enterprise levels. Statistical methods, including one-way analysis of variance (ANOVA), correlation analysis, and linear regression analysis, are consistently applied across all levels to scrutinize the association between patent data indicators and economic output. The combined approach of correlation and regression analysis aims to derive precise patent innovation indicators and their impact on economic output, enhancing the clarity and intuitiveness of the research findings. Results: On the global stage, the findings reveal a robust growth in biomedical patents from 2000 to 2022. China emerges as a major player, exhibiting substantial patent applications (1804099 pcs), authorizations (35131 pcs), and PCT patents (1115204 pcs). Correlation analyses indicate positive relationships between a country's GDP and patent-related metrics, further validated by linear regression. These results emphasize the importance of economic strength in fostering biomedical innovation. Turning our attention to Chinese provinces, our investigation spans 31 regions, unraveling diverse patterns in patent outputs. Provinces with higher GDP consistently demonstrate elevated patent activity, showcasing a symbiotic relationship between economic prosperity and biomedical innovation. Correlation and regression analyses reaffirm these findings, emphasizing the quantitative impact of economic factors on biomedical research and development. At the micro-level, the study scrutinizes the top 10 pharmaceutical companies globally, in China, and within Jiangsu province. Striking disparities in patent application numbers, patents in force, and PCT applications highlight China's accelerating innovation capabilities. The correlation analysis establishes positive associations between market value and key patent indices (Coef. for number of patent application, patent in force, and PCT application, respectively 0.74, 0.71, 0.73,) emphasizing the pivotal role of patents in driving economic success for pharmaceutical companies. Linear regression analyses provide nuanced insights into the impact of patent indices on market value. The positive coefficients for patents in force (Coeff =9.77; 95% CI, 8.57 ~ 10.97) and PCT applications (Coeff=21.13; 95% CI, 18.68 ~ 23.58) signify their significant contribution to market values. The accompanying scatterplots visually reinforce these relationships, illustrating a positive linear correlation. Conclusions: Particularly, conducting a micro-level analysis, this research reveals individual pharmaceutical companies' contributions often overlooked in macro-level studies. The nuanced exploration of the relationship between patent indicators and economic outcomes emphasizes the positive correlation between regional economic levels and patent indicators, particularly in the pharmaceutical industry. At the enterprise level, the research establishes a connection between patent numbers and market competitiveness, with more patents associated with stronger market positions. Comparisons with other countries and Chinese provinces highlight strategic gaps and position Jiangsu as a leader in innovation capabilities. The study underscores the critical importance of patent quality over quantity, advocating for strategies that prioritize high-quality patents to drive sustained growth and competitiveness in the biomedical industry.