How Technological Innovation Affect China’s Pharmaceutical Smart Manufacturing Industrial Upgrading

Table 1

Definition of input and output variables.

Variable	Role	Definition
Internal expenditure of R&D (100 million yuan)	Input (x1)	The actual expenditure of the enterprise for internal R&D activities (basic research, applied research, and experimental development)
External expenditure of R&D (100 million yuan)	Input (x2)	Funds paid by enterprises to cooperative organizations include expenditures for acquiring technology from domestic scientific research institutes and domestic and foreign enterprises
New products development expenditure (100 million yuan)	Input (x3)	The internal expenditures for enterprises' scientific and technological activities are used for the R&D of new products
Full-time equivalent on R&D personnel (man-year)	Input (x4)	The number of full-time personnel plus part-time personnel is converted into the total number of full-time personnel according to the workload
Sales revenue of new products (100 million yuan)	Output (y1)	The sales revenue realized by the enterprise selling new products
Number of patent applications (piece)	Output (y2)	The number of patents applied for by enterprises, including invention patents, utility model patents, and design patents