Descriptive statistics of the measurements
| Variables | Description | Minimum | Maximum | Mean | Standard deviation |
|---|---|---|---|---|---|
| logPM | Logarithm of net profit margin*, measured by dividing net profits by business income | −0.87 | 1.72 | 1.30 | 0.27 |
| trend | Trend variable | 1.00 | 8.00 | 4.50 | 2.29 |
| trend2 | Square trend | 1.00 | 64.00 | 25.50 | 21.13 |
| logPT | Logarithm of the number of patents granted | 0.00 | 2.94 | 1.29 | 0.70 |
| logPA | Logarithm of the number of new drugs approved by China’s FDAa | 0.00 | 1.17 | 0.87 | 0.54 |
| logRDI | Logarithm of R&Db intensity (R&D input*/business income*) | −1.31 | 1.20 | 0.28 | 0.49 |
| logRSI | Logarithm of R&D staff intensity (number of R&D staff/number of total staff) | 0.42 | 1.70 | 1.08 | 0.23 |
| logSSI | Logarithm of sales staff intensity (number of sales staff/number of total staff) | 0.07 | 1.79 | 1.28 | 0.45 |
| logMII | Logarithm of market input intensity (Market input/business income) | 0.43 | 1.65 | 1.16 | 0.32 |
| logSQ | Logarithm of the staff quality (number of staff that has a college degree or above/number of total staff) | 1.28 | 1.97 | 1.72 | 0.13 |
| Ownership | Dummy variable that is one if it is a state-owned firm and zero otherwise | 0.00 | 1.00 | 0.40 | 0.49 |
| Kinds of products | Dummy variable that is one if it is a firm that mainly produces chemical drugs and zero if it is a TCMc | 0.00 | 1.00 | 0.70 | 0.46 |
| Location | Dummy variable that is one if it is a coastal firmd and zero otherwise | 0.00 | 1.00 | 0.67 | 0.47 |
| Variables | Description | Minimum | Maximum | Mean | Standard deviation |
|---|---|---|---|---|---|
| logPM | Logarithm of net profit margin*, measured by dividing net profits by business income | −0.87 | 1.72 | 1.30 | 0.27 |
| trend | Trend variable | 1.00 | 8.00 | 4.50 | 2.29 |
| trend2 | Square trend | 1.00 | 64.00 | 25.50 | 21.13 |
| logPT | Logarithm of the number of patents granted | 0.00 | 2.94 | 1.29 | 0.70 |
| logPA | Logarithm of the number of new drugs approved by China’s FDAa | 0.00 | 1.17 | 0.87 | 0.54 |
| logRDI | Logarithm of R&Db intensity (R&D input*/business income*) | −1.31 | 1.20 | 0.28 | 0.49 |
| logRSI | Logarithm of R&D staff intensity (number of R&D staff/number of total staff) | 0.42 | 1.70 | 1.08 | 0.23 |
| logSSI | Logarithm of sales staff intensity (number of sales staff/number of total staff) | 0.07 | 1.79 | 1.28 | 0.45 |
| logMII | Logarithm of market input intensity (Market input/business income) | 0.43 | 1.65 | 1.16 | 0.32 |
| logSQ | Logarithm of the staff quality (number of staff that has a college degree or above/number of total staff) | 1.28 | 1.97 | 1.72 | 0.13 |
| Ownership | Dummy variable that is one if it is a state-owned firm and zero otherwise | 0.00 | 1.00 | 0.40 | 0.49 |
| Kinds of products | Dummy variable that is one if it is a firm that mainly produces chemical drugs and zero if it is a TCMc | 0.00 | 1.00 | 0.70 | 0.46 |
| Location | Dummy variable that is one if it is a coastal firmd and zero otherwise | 0.00 | 1.00 | 0.67 | 0.47 |
Note(s): a: China FDA: China Food and Drug Administration
b: R&D: research and development
c: TCM: traditional Chinese medicine
d: Coastal location refers to the pharmaceutical firm’s location in the coastal provinces of China, including Liaoning, Tianjin, Hebei, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, Guangdong, Guangxi and Hainan
*R&D input, business income and net profit in Renminbi are measured using constant prices 2009 = 100