Research Title: Centralized Procurement Authority and Corporate Innovation

Authors: Jia Xiao, Li Xiaoqi (corresponding), Liu Boluo, Shao Nan

Journal: China Economic Review, Volume 94, 2025

Summary:

Using establishment of National Healthcare Security Administration (NHSA) as exogenous policy shock, this study examines government's impact on pharmaceutical firm innovation through centralized pharmaceutical procurement platforms and healthcare insurance directories.

Key Findings:

1. NHSA establishment significantly increased firm innovation activities

   
   

2. Mechanism analysis shows: (1) NHSA policies adversely affected firm financial performance and stock returns,motivating affected firms to increase innovation investment; (2) intensified industry competition further drove innovation, especially firms with reduced market share

   
   

3. Firms with stronger resource endowment more successfully converted external pressure into innovation outcomes

   
   

4. NHSA post-establishment policies reshaped pharmaceutical industry competition landscape and became important innovation policy driver

   
   

Implications: Provides new empirical evidence for understanding centralized public procurement policy effects.

Journal: China Economic Review(B+ journal under Wuhan University Economics and Management School grading scheme)

Authors: Jia Xiao (Huazhong University assistant professor), Liu Boluo (Shanghai University of Finance & Economics associate professor), Shao Nan

(Wuhan University master's student)

Link: //www.sciencedirect.com/science/article/pii/S1043951X25002020