Application of Semi-parametric Spatial Lag Model in the Study of the Relationship Between Innovation Efficiency and Industrial Development in China’s Pharmaceutical Manufacturing Industry

The purpose of this study is to explore the correlation between technological progress and industrial development in the pharmaceutical manufacturing industry. The method is to collect a total of 319 panel data from 29 provinces in China from 2010 to 2020 using various statistical yearbooks and conduct empirical research based on the super-efficiency three-stage SBM model and semi-parametric spatial lag model, aiming to provide a reference for countries or regions with similar development levels in the world. The result is that the industrial development of the pharmaceutical manufacturing industry in a country or region will inhibit the industrial development of neighboring regions, and the impact of innovation efficiency on industrial development presents a fluctuating relationship of first promoting, then inhibiting, and then promoting with the improvement of technological innovation level. The conclusion is that the relatively weak countries or regions should promote the digital transformation of the pharmaceutical industry, combine the advantages of the industrial chain, use the digital platform to promote cross-regional cooperation, and the government should strengthen the incentive mechanism of pharmaceutical products by combining the local advantages. Countries or regions with strong medicine should speed up the internationalization process of pharmaceutical enterprises, promote innovative drugs, CXO, and other industries, and achieve misplaced development.