From lab to market: the financial impact of industry-university-research cooperation on Chinese pharma firms
Abstract
Purpose
This study examines the impact of industry-university-research (IUR) cooperation on the financial performance of pharmaceutical enterprises in China. The current literature has primarily focused on the effects of IUR cooperation on innovative performance, often overlooking its financial implications. This research aims to address this gap by analyzing how such collaborations affect financial outcomes.
Design/methodology/approach
Using a difference-in-differences (DID) approach, this study analyzes data from publicly listed Chinese pharmaceutical companies between 2011 and 2022. The analysis includes robustness checks and heterogeneity analysis to validate the findings.
Findings
Empirical results indicate that IUR cooperation significantly improves the financial performance of pharmaceutical enterprises. Firms engaged in IUR collaborations exhibit a notable improvement in return on assets (ROA) and return on equity (ROE). The research findings confirm that absorptive capacity (internal factors) and the external knowledge resource base (external factors) enhance the positive impact of IUR collaboration on the financial performance of pharmaceutical enterprises. Additionally, the heterogeneity analysis based on regional levels of intellectual property protection demonstrates a stronger positive influence of IUR cooperation on the financial performance of pharmaceutical enterprises in regions with greater levels of intellectual property protection.
Originality/value
This study contributes to the understanding of the financial benefits of IUR cooperation in the biopharmaceutical sector. By highlighting the significance of absorptive capacity, external knowledge resource base and regional intellectual property protection, this study offers valuable insights for policymakers and business leaders aiming to cultivate effective industry–academia collaborations.
Keywords
Acknowledgements
Funding: This work was supported by the National Natural Science Foundation of China (Grant No. 72172072); the Humanities and Social Science Research Planning Fund of the Ministry of Education (Grant No. 22YJA630026) and Beijing Social Science Foundation (Grant No. 24JJB011).
Citation
Wan, P., He, F., Zhang, H. and Wu, R. (2024), "From lab to market: the financial impact of industry-university-research cooperation on Chinese pharma firms", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-06-2024-1606
Publisher
:Emerald Publishing Limited
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