ABSTRACT
This chapter describes the situation regarding innovative investment in the pharmaceutical industry in China. Given the rigid demand for pharmaceuticals and the opportunities of an expanding market, the industry achieved a four-fold increase in gross output value between 2005 and 2012. In 2012, China's financial investment into its pharmaceutical industry reached its highest point in history. In terms of intensity of investment, China ranks lower even than India. China has already become the second largest economy in the world. The Chinese government has consistently intensified its investment in pharmaceutical innovation. Contrast to developed countries, China's human resources is very limited when it comes to pharmaceutical R&D. The chapter makes targeted policy recommendations. It points out that the extended period required for getting approval of clinical trials for registering new drugs is already constraining the development of new drugs in China. China has already realized universal coverage of its population in terms of basic health insurance.
