This article provides overview of the programs and plans, tools of scientific and technological, innovation and industry policies for new drug discovery. The authors substantiate that China has a government-led integrated approach to protecting and strengthening pharmaceutical sector. Discovered and proved the fact that the Chinese Government is encouraging R&D in the pharmaceutical sector, with special attention to the biotechnologies and is providing substantial support in the form of subsidies, tax incentives and establishment of special high-tech zones to encourage the production of new products and processes in the pharmaceutical sector. In addition to government support, there is substantial foreign direct investment in production and R&D, which entails transfer of technology and intensifies endogenous innovations in pharmaceutical manufacturing.
The authors give special attention to the fact that China’s Government Procurement provides domestic price preference programme and realizes policies promoting indigenous innovation products and technology transfer. Initiatives to create human resources for pharmaceuticals industry and government aid attract foreign specialists and highly qualified Chinese migrants. Government support has raised the level of production localization, and increased employment and value added in the industry. Among the achievements attained due to the political mechanisms created in this country, are scientific and technological competencies and technology development, and high competitiveness of the domestic pharmaceutical industry, protection of intellectual property rights, access to foreign markets, import substitution and lower dependence on imported technologies, pharmaceutical intermediate goods and end-product, and high consumer quality of manufactured goods.
It is proven that China’s state-led innovation and investment development model has supported growth over the last 40 years and produced numerous endogenous innovations in pharmaceutical manufacturing. The article presents the authors’ vision of the determinants of success of the Chinese government in building innovation potential of domestic pharmaceuticals industry and of the resilience of the industry in the face of crisis caused by COVID-19.

Keywords:China, pharmaceutical industry, biotechnologies, innovation, government aid, tax incentives, subsidies, public procurement, industrial policy

The article substantiates various theoretical and applied principles of developing high-tech pharmaceutical industries (HTPI). It is established that the key problem of developing countries in this area is the dependence on resources and markets of developed countries, while the involvement of advanced foreign technologies can be a catalyst for increasing the technological potential of host countries (subject to the availability of proper knowledge and human capital, changes in the institutional environment, and improved the framework conditions for innovation). In the context of the development of HTPI, the author shows the importance of the network nature of the acquisition by pharmaceutical companies of sustainable competitive advantages based on resources that are difficult to simulate or replace. It is substantiated that networks built with local research institutions, higher education institutions, and research units of other companies, give pharmaceutical manufacturers the opportunity to access complementary assets and become their specific resource, which provides unique competitive advantages.
The author reveals various methodological and statistical features of the categorization of industries by the level of technology in the conditions of globalization. It is substantiated that the current low value of the ratio of research and development (R&D) to value-added generated by pharmaceuticals of individual countries is not a sign of the industry’s low technological level, as the current revenues are the result of long-term R&D and harmonization procedures for launching new drugs with lags of 10-15 years.
A new tool for the study of international trade in high-tech pharmaceuticals is proposed, whose peculiar feature consists in the categorization of nomenclature items by end use; the List of high-tech medical and pharmaceutical intermediate goods is formulated (in accordance with SITC Rev.4 and UKT FEA); the following indicators are proposed: the coefficient of import dependence of pharmaceutical production, the coefficient of "purified" exports of pharmaceutical products and the coefficient of imports coverage with HTPI output, and the formulas for their calculation are provided. The author's approach is the first to create the opportunity to assess the scale of costs and the dependence of the pharmaceutical industry on imported components that embody advanced technologies and are the industrial supplies for HTPI.
It was found that in Ukraine the share of foreign intermediate high-tech goods in the consumption of the industry reaches 82.2%; the industry, working on imported substances, produces mainly products for the domestic market, without earning foreign currency, even to cover the cost of purchasing the necessary ingredients; manufacturers do not rely on synthesized chemical products of domestic production, primarily due to the fact that the products of the chemical industry for the needs of pharmaceuticals in Ukraine are virtually non-existent; and the increase in output depends on foreign technologies and intermediate goods. It is substantiated that Ukraine’s pharmaceutical industry is critically dependent on imported supplies to ensure the smooth operation of enterprises and the healthcare industry.
Key endogenous barriers that hinder the development of HTPI have been identified, including problems in the training of specialists and a lack of scientists whose competencies would contribute to solving the problems of endogenous development of the industry; lack of state aid to business entities for research, and technological and innovative activities; lack of own funds to increase expenditures on R&D and implementation of large-scale investment and innovation projects; and lack of cheap loans, due to which Ukrainian pharmaceutical manufacturers find themselves in unequal conditions compared to foreign competitors.
Conceptual bases of HTPI development in Ukraine are proposed; justified the expediency of legal changes, definition of strategic priorities and introduction of measures of development of HTPI in Ukraine based on the comprehensive approach, which will cover creation and development of pharmaceutical ingredients for medicines (chemical and biotechnological goods), medical products, fillers, packing materials, machinery and equipment for pharmaceuticals to help reduce the dependence on foreign technologies, and to increase the level of production localization, employment and revenues to the budgets of all levels.

Keywords:high-tech production, pharmaceuticals, industry, technologies, innovations, endogenous innovations, technological dependence, state policy

The global COVID-19 pandemic, which has caused a shortage of medicines and medical products, as well as pharmaceutical products, especially active pharmaceutical ingredients, has demonstrated Ukraine’s unpreparedness to face such challenges and threats. This encourages the search for effective mechanisms to reduce vulnerability, ensure stability and develop pharmaceutical activities. The purpose of the article is to draw on the experience of the European Union to justify the need to introduce measures of the policy of stimulating the development of pharmaceuticals in Ukraine in order to reduce the dependence of the sector and the healthcare system on imports. To achieve the goal of the article, the authors used analysis and synthesis, logic-dialectic and comparative analysis methods. The article shows the nature and extent of existing dependencies of pharmaceutical production; and identifies features of the EU policy. The EU has been found to have a long history of prioritising and promoting pharmaceutical industry. It is shown that the new EU strategic documents adopted in response to the COVID-19 crisis have laid the foundation for the elimination of the industry’s vulnerabilities and external trade dependencies. For the first time, a conceptual approach to the formation of a dualist state policy and strategy for the development of Ukraine’s high-tech pharmaceutical production was proposed, which is based on synergies and complementary policies between drug policy and industrial policy. This approach is aimed both at stimulating the development and production of new pharmaceuticals based on advanced technologies and reducing the dependence of this country’s healthcare system on imports. Also, the approach aims at enhancing the competitiveness of pharmaceutical production, increased localization through the use of locally produced products, intensifying related activities, ensuring stability of supply of pharmaceutical products and transforming the industry into a strategic asset of growth of the economy, employment, and national security. The authors propose a conceptual approach to defining the priorities and programme tasks of the policy for the development of Ukrainian high-technology pharmaceutical production based on the principles of multi-dimensionality and comprehensiveness, and covering the development and production not only of medicines and medical products, but also of pharmaceutical ingredients (chemical and biotechnological), fillers and packaging materials, equipment and apparatus for pharmaceutical production. The principles of the formation of a strategy for the development of the high-tech pharmaceutical production of Ukraine are justified based on the balance of interests of consumers and producers of pharmaceutical goods with the interests of the State, based on its following goals: to care for the health of the nation, ensure an efficient economic system and social stability; promote the emergence of new effective drugs based on advanced technologies; and reduce dependence on imports and threats to national security.

Keywords:Eurointegration, pharmaceutical industry, pharmaceutical policy, industrial policy, technological dependence, high-tech manufacturing