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.
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.
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.
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.
