This chapter provides a three-prong investigation framework on Chinese pharmaceutical industry, namely, policy structure, market structure and IP (patentbased) structure. The Chinese pharmaceutical industry has been developing fast in market size and revenue volumes. However, the scale of Chinese pharmaceutical companies is relatively small, and the market concentration is low. Therefore, local pharmaceutical companies with higher R&D input are generally less profitable. Although there is increase in the number of patented drugs in the pharmaceutical industry in China, patents have made relatively low contribution to the industrial values, and IP held by Chinese firms is less competitive compared with that of foreign companies. Most of the pharmaceutical enterprises in China still focus on generic drugs. Market regulation of the pharmaceutical industry in China is relatively strict, especially market entry and price control. A detailed comparison between Chinese and Indian industry is given by this chapter.

Regional technology characters (TCs) are studied in this paper to find whether innovation in Chinese cities leads to technology converging, or technology divergence, in both the intra-city and inter-city scales, with which regional economic development strength may be better explained. Based on a literature review on the subject, a two-dimensional research framework and relevant technical lens are designed to clarify TC in cities composed of parameters on Technology Strength (TS) versus Technology Angle (TA). By applying Principle Component Analysis, a technical lens is made possible based on extracted parameters on three integrated technology dimensions for measuring TSs and TAs over 117 Chinese sample cities with invention patent data covering 21 technology field between 2005/2006 and 2015/2016. Technology convergence versus divergence are examined for 28/24 sample cities beyond average score, and the research findings indicate that technology divergence in Chinese cities can be confirmed at the inter-city level, even partially at the intra-city level. This finding holds for most sample cities with fairly large and modest TSs, while intra-city technology converging is significant, especially for larger sized TS samples, however they also differ on different dimensions. This may imply that urban economic development in China is technical based and differentiated. 1632 | CHEN Et al. 1 | INTRODUCTION TO REGIONAL-BASED TECHNOLOGY DIVERSIFICATION STUDIES Technology diversification can lead to lots of advantages (Markides, 1997), previously shown mostly at the company level. Research has been conducted to indicate that firms diversifying their technological bases can exploit economies of scope in R&D and technological knowledge, in terms of diversifying key knowledge resource across multiple product lines (Miller, 2006; Panzar & Willig, 1977; Teece, 1982), which clearly implies that the advantages are mainly on diversified use of the technologies. Another advantage of technology diversification can be shown with the technical ecosystem view, as technological diversification (spreading resources generated from different technological fields) allows firms (and similarly groups of firms in certain regions) to reduce their risks from their R&D input and to enhance adaptability to the fast-changing technological environment (Garcia-Vega, 2006). This trend is especially true under the emerging and prevailing trends of technological fusion since 1990's in many high-tech sectors such as in telecommunications, chemicals and biotechnologies, and auto-industries (Gambardella & Torrisi, 1998; Suzuki & Kodama, 2004). This ecosystem perspective, however, is different from the former one which is only focusing on effectively use of limited technology resource. This latter concern is especially suited to regional level studies, where the issue emphasized from rather different vision-varieties and volume of technology resources are the key for supporting regional innovation in ecological sense and in qualitative economy terms. Releva...

Selection and peer-review under responsibility of the scientific committee of the 13th Int. Conf. on Applied Energy (ICAE2021).