Author(s)

Bowen Pan ¹, Linbin Zeng ¹, Xusheng Zhang ¹

Affiliation(s)

¹ Guangdong Medical University, Dongguan, Guangdong, China

Corresponding Author

Linbin Zeng

ABSTRACT

This study examines the impact of R&D investment on the export performance of innovative pharmaceutical enterprises and challenges the conventional wisdom that increased R&D spending invariably boosts exports. Utilizing a mixed-methods approach, we conducted an exploratory multi-case analysis coupled with linear regression modeling, focusing on three representative Jiangsu-based firms—Hengrui pharmaceutical (mature), Xinda biology (growing), and Zejing pharmaceutical (start-up)—over the period 2020–2024. Robustness was assessed via stepwise, ridge, and ordinary least squares regressions. Results indicate that R&D intensity lacks a statistically significant direct effect on export volume, with positive signals emerging only under stepwise regression and failing to demonstrate cross-method robustness. Conversely, firm size exhibits a stable positive correlation with exports post-collinearity adjustment, while the asset-liability ratio exerts a limited negative influence. Notably, no significant export disparity was observed across firms at varying developmental stages. These findings refute the deterministic view of R&D-driven export growth, highlighting instead the contingent nature of this relationship, mediated by factors such as R&D cycles, international regulatory approval, and market access barriers. The study offers nuanced insights for optimizing R&D allocation and export strategies tailored to corporate lifecycle stages, alongside theoretical implications for industrial policy formulation.

KEYWORDS

R&D investment, Innovative pharmaceutical enterprises, Enterprise scale, Export performance

CITE THIS PAPER

Bowen Pan, Linbin Zeng, Xusheng Zhang. The Impact of R&D Investment on Export Trade: A Study Based on Innovative Pharmaceutical Companies at Different Development Stages in Jiangsu Province Exploratory Multiple-case Study. Financial Engineering and Risk Management (2026). Vol. 9, No. 1, 22-40. DOI: http://dx.doi.org/10.23977/ferm.2026.090103.

REFERENCES

[1] Liu Q., Long J., Zhang Z., & Zhao C. (2023). Tax incentives, R&D expenditure and export performance: A cluster analysis based on the reform of high-tech enterprise recognition conditions. China Industrial Economics, (4), 136-154.
[2] Zhang C., Mao N., & Yan J. (2024). Research on the innovation status and improvement of biomedical industry in Jiangsu Free Trade Zone. Chinese Journal of Pharmaceutical Industry, 55(5), 651-658.
[3] Jiang B. (2014). Analysis on the relationship between R&D investment and export of high-tech enterprises: An empirical study based on provincial and municipal data in Zhejiang. Science and Technology Management Research, 34(3), 78-81.
[4] Chen Y., Li Y., & Zhou S. (2012). Export duration of Chinese enterprises and its determinants. Economic Research Journal, 47(7), 48-61.
[5] Sun C., Yu H., & Zhao R. (2015). Can the quality of urban export products be improved from agglomeration economy? International Trade Issues, (4), 47-58.
[6] Wang J. (2025). Globalization path of innovation and development of China's biomedical industry. New Economy Guide, (2), 109-144.
[7] Guan J., & Ma N. (2019). Innovative capability and export performance of Chinese firms. Technovation, 80-81, 44-55.
[8] Cassiman B., & Golovko E. (2011). Innovation and internationalization through exports. Journal of International Business Studies, 42(1), 56-75.
[9] Aw B. Y., Roberts M. J., & Xu D. Y. (2011). R&D investment, exporting, and productivity dynamics. American Economic Review, 101(4), 1312-1344.
[10] Wakelin K. (2001). Productivity growth and R&D expenditure in UK manufacturing firms. Research Policy, 30(7), 1079-1090.
[11] Jiang Y. (2024). Trends of drug licensing in China: From bring-in to go-global. Pharmacological Research, 210, 1-8.
[12] Dutta S., Narayanan S., & Varma S. (2016). R&D intensity and exports: A study of Indian pharmaceutical firms. Journal of International Management, 22(3), 257-272.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics