ArticleFrontiers in public health2025
Impact of National Drug Price Negotiation policy on the innovation performance of biopharmaceutical industry in China.
Article in Frontiers in public health, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 3 papers.
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Who cites it
3 citing papers in PubMed.
- International approval of Chinese pharmaceuticals: a USA-anchored analysis with comparative insights from Europe and other markets.EClinicalMedicine · 2026Article
- Characteristics, accessibility and regional equity evaluation of pediatric medicines through National Drug Price Negotiation of China, 2017-2024.Frontiers in pharmacology · 2026Article
- Impact of China's national drug price negotiation on pharmaceutical firms' innovation activities.Frontiers in public health · 2026Article
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Authors and funding
8 authors.
Funding
No grant is acknowledged in the PubMed record.
Abstract
Background: The National Drug Price Negotiation (NDPN) policy is a key institutional reform in China that reshaped drug market access rules. While its effects on drug prices and accessibility are well documented, evidence on firm-level innovation performance remains limited. This study evaluates the impact of the 2019 NDPN on the innovation performance of Chinese biopharmaceutical firms. Methods: We used quarterly panel data from 96 listed biopharmaceutical firms from 2018 Q1 to 2023 Q4. A difference-in-differences (DID) model combined with propensity score matching (PSM-DID) was employed to identify causal effects. Innovation performance was measured by R&D investment, patent application count, and overall growth score, with firm- and time-fixed effects as well as financial controls included. Robustness was assessed through parallel trend and placebo tests. Results: DID estimates show that firms with NRDL-included drugs significantly increased R&D investment (coefficient = 0.733) and patent application count (coefficient = 0.362). Overall growth score showed no short-term change. PSM-DID confirmed these findings, with R&D investment (coefficient = 0.693) and patent application count (coefficient = 0.272) both significantly improved. Conclusion: The NDPN policy significantly enhanced firms' innovation performance by increasing R&D investment and patent applications, though its effect on overall growth remains limited in the short term. These findings provide firm-level evidence that NDPN strengthens innovation incentives in China's biopharmaceutical industry.
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