Abstract

Because of the small target market and poor profitability of Orphan Drug, it is difficult to effectively encourage the R&D and production Behavior of the Industry by the market mechanisms alone. So that, it is necessary to implement the incentive policy for Orphan Drug in order to stimulate the innovative behavior. Basing on the analysis of domestic market and foreign and innovative incentives policy, the paper discussed the policy factors of the innovative behavior for Chinese Orphan Drugs’ industry by the research method of Structural Equation Modeling (SEM), and proposed the innovation incentive path, such as the registered priorities policy, industry-led incentive, new medical reform policy, and the policies collaborative mechanism.

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