New ApproacheThe pharmaceutical industry’s R&D expenditure at the global level in 2007–2018 is analyzed. Two-thirds of the global pharmaceutical companies’ spending on R&D are accounted for s to the Assessment of Foreign Trade in High-Tech Pharmaceuticals
The pharmaceutical industry’s R&D expenditure at the global level in 2007–2018 is analyzed. Two-thirds of the global pharmaceutical companies’ spending on R&D are accounted for by 20 multinationals companies located mostly in the U.S. and EU.
With low level of R&D funding, Ukraine cannot produce cutting-edge pharmaceutical technologies. Imports of intermediate goods for pharmaceutical industry are the most widely used and most influential channel for attracting advanced technologies. The aggregation of high-tech goods by functional purpose (high-tech capital goods, high-tech intermediate and high-tech consumer goods) is analyzed. This aggregation is made by combining the Classification by Broad Economic Categories by SITC Rev. 4 (UN Statistics Division) and the High-Tech Aggregation SITC Rev. 4 (Eurostat). Based on this approach, the article identifies a range of high-tech pharmaceutical goods that are essential for pharmaceutical production, and introduces the concept of “high-tech pharmaceutical intermediate goods”. The author compiled a nomenclature of high-tech pharmaceutical intermediate goods by SITC Rev.4 (17 nomenclature positions with 6 digits). For the first time, this statistical tool made it possible to estimate the scale of national economy spending on advanced foreign technology embodied in commodities that are inputs in the pharmaceutical industry.
New indicators are proposed: “ratio of import dependence of pharmaceutical production”, “‘purified’ exports of pharmaceutical goods” and “coverage ratio of imports of high-tech intermediate pharmaceutical goods”; their algorithms are given and used in the author’s calculations for Germany (strong innovator), Poland (moderate innovator), and Ukraine as a country with low level of technological innovation in the analyzed field. The author recommends using the proposed new indicators for statistical monitoring and analysis of the effectiveness of science & technology and innovation policy measures aimed at building competitive pharmaceutical industry in Ukraine, reducing its dependence on imports and enhancing its export potential.
EvaluatePharma® World Preview 2018, Outlook to 2024. Executive Summary. (11th ed.). (2018). info.evaluategroup.com. Retrieved from http://info.evaluategroup.com/rs/607-YGS-364/images/EvaluatePharma-World-Preview-2018-Executive-Summary.pdf
Dunning, J. H. (1993). Multinational Enterprise and the Global Economy. Reading, MA: Addison-Wesley.
Globalization of Science and Engineering Research 2010. www.nsf.gov. Retrieved from http://www.nsf.gov/statistics/nsb1003/pdf/nsb1003.pdf
Pro derzhavnyi biudzhet Ukrainy na 2020 rik: Zakon Ukrainy vid 14.11.2019 r. № 294-IX [On State Budget of Ukraine. Law of Ukraine of November 14, 2019 № 294-IX]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/294-IX [in Ukrainian].
Barro, R. J., & Sala-i-Martin H. (2010). Ekonomicheskiy rost [Economic Growth] (Trans). Moscow: Binom. Laboratoriya znaniy [in Russian].
Gerschenkron, A. (1962). Economic Backwardness in Historical Perspective. Cambridge, MA: Belknap Press of Harvard University.
Maskus, K. (2004). Encouraging International Technology Transfer. Geneva: UNCTAD.
Proposed Standard Method of Compiling and Interpreting Technology Balance of Payments Data. ТВР Manual (1990). Paris: OECD. https://doi.org/10.1787/9789264065567-en
Xu, B. (2000). Multinational Enterprises, Technology Diffusion, and Host Country Productivity Growth. Journal of Development Economics, 62, 477–493.
Eaton, J., Bernard, S., & Kortum, S. (2002). Technology, Geography and Trade. Econometrica. Vol. 70, 5. 1741–1780.
Keller, W. (2004). International Technology Diffusion. Journal of Economic Literature, Vol. 42, 752–782.
Shin-Kun, P., Riezman, R., & Wang, P. (2015). Intermediate Goods Trade, Technology Choice and Productivity. CESifo Working Paper, Series 5637. Retrieved from http://www.econ.ntu.edu.tw/uploads/asset/data/58d1f2ca48b8a13c4f004d60/macro_1060406.pdf
Ethier, W. (1982). National and International Returns to Scale in the Modern Theory of International Trade. American Economic Review, vol. 72, 3, 389–405.
Goldberg, P., Khandelwal, A., Pavcnik, N., & Topalova, P. (2010). Imported Intermediate Inputs and Domestic Product Growth: Evidence from India. The Quarterly Journal of Economics, Vol. 125, 4, 1727–1767.
Kei-Mu, Yi (2003). Can Vertical Specialization Explain the Growth of World Trade? Journal of Political Economy, Vol. 111, 1, 52–102.
Shin-Kun, P., & Thisse, J.-F., & Wang, P. (2006). Economic integration and agglomeration in a middle product economy. Journal of Economic Theory, Vol. 131 (1), 1–25.
Salihova, O. B. (2012). Import visokotehnologichnih tovariv v Ukrayinu ta yogo viznachalni determinanti [Imports of high-tech goods into Ukraine and its determining determinants]. Nauka ta naukoznavstvo – Science and Science of Science, 3, 40–56 [in Ukrainian].
Duyun, D. O. (2016). Zahrozy farmatsevtychnoho vyrobnytstva Ukrainy v konteksti analizu zovnishnoi torhivli vysokotehnolohichnymy tovaramy [Threats to pharmaceutical production in Ukraine in the context of foreign trade analysis of high-tech goods]. Problemy nauki — Problems of science, 2, 23–33 [in Ukrainian].
Salikhova, O. B. (2012).Vysokotekhnolohichni vyrobnytstva: vid metodolohii otsinky do pidnesennia v Ukraini [High-tech production: from the methodology of valuation to uplift in Ukraine]. Kyiv: NAN Ukrainy, Instytut ekonomiky ta prohnozuvannia [in Ukrainian].
Science and Engineering Indicators 2020. (2020). nsf.gov. Retrieved from https://nsf.gov/statistics/seind/
UN Comtrade Database. (2020). comtrade.un.org. Retrieved from https://comtrade.un.org/data/ [Appeal data: March 1. 2020].
High-tech aggregations by SITC Rev. 4 Retrieved from https://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an5.pdf
Federal Reserve Bank of New York. www.federalreserve.gov. Retrieved from https://www.federalreserve.gov/releases/g5a/current/
Ofitsiine Internet-predstavnytstvo Natsionalnoho banku Ukrainy [Official Website of the National Bank of Ukraine]. bank.gov.ua. Retrieved from: https://bank.gov.ua/ [in Ukrainian].
Statystychnyi shchorichnyk za 2018 rik: stat. zb. [Statistical Yearbook. 2018]. (2019). Derzhavna sluzhba statystyky Ukrainy. Retrieved from https://ukrstat.org/uk/druk/publicat/kat_u/2019/zb/11/zb_yearbook_2018.pdf [in Ukrainian]
Annual detailed enterprise statistics for industry (NACE Rev. 2, B-E). European Commission. Retrieved from https://ec.europa.eu/knowledge4policy/dataset/beo-sbsnaindr2_en
2019 Global life sciences outlook. Focus and transform. Accelerating change in life sciences. www2.deloitte.com. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/gx-lshc-ls-outlook-2019.pdf
Thomson Reuters content. www.reuters.com. Retrieved from https://www.reuters.com/article/us-health-coronavirus-eu/europe-could-face-more-drug-shortages-as-coronavirus-squeezes-supplies-idUSKBN20S1R2
Salikhova, O. B., & Krekhivsky, O. V. (2018). Novyi mekhanizm derzhavnoi pidtrymky tekhnolohichnykh innovatsii dlia rozvytku promyslovosti [A New Mechanism for State Support to Technological Innovation for Industrial Development]. Statystyka Ukrainy – Statistics of Ukraine, 2, 30–35 [in Ukrainian].
Abstract views: 22 PDF Downloads: 15