Chapter 1

China's role in World health industry

The Chapter provides a critical overview of the main ideas underlying the book and sets the ground for the whole publication. It conceptualizes the starting point of our analysis, as well as goals and key contribution to the existing literature, current policy debate and firm level implication. It summarizes existing publications and available contributions on both theoretical and academic papers and reports.

The starting angle is China and how, in an historical perspective, it is changing its role in global manufacturing.
In particular, from being the factory of the world, China is gradually becoming a leader in technological advanced productions. The health industry is a crucial sector in this perspective for at least 2 reasons:

- It can support internal sustainability and a new normal growth. It is a crucial part of the bigger reform of the healthcare system, which is supposed to guarantee access to basic products and services to the population (demand side perspective);

- It leverages on high value added productions, advancing the role of China as global innovator (supply side perspective).

China is becoming increasingly important at the world level as regards the production of specific health related products, as data show. China is shifting attention from demand side of the healthcare sector, to the supply side.

An important restructuring process is taking place in the Chinese industry, which involves higher domestic concentration and international ventures of Chinese firms. The government is playing a crucial role in shaping this process, through the release of a series of integrated industrial policies, including the support to the "Go Global" strategy of the sector. Expectations are that this process will significantly affect global manufacturing patterns and international innovation networks.

In the light of changes in the Chinese market, we analyse some global implication:

- If China enters the supply side, will it just satisfy the Chinese demand or try to conquer world market shares and Western country consumers?

- How is the Western world going to face the competition of Chinese firms and their willingness to invest massively abroad? Will Europe be able to develop a common and single industrial policy to address the global changes in the healthcare market?

Chapter 2

Health industry growth and changing trends

After the first chapter analyses world trend and the role of China in a global and broad perspective, the second chapter goes deeply into the description of key determinants of industry growth and trade globalization patters at World level for the healthcare sector. Changing trends are analysed, including the emerging and growing role of China both in terms of demand for healthcare goods and services, as well as in terms of supply for technology, innovation, and products.

The analysis includes the role of Chinese non-state businesses, the role of Chinese SMEs vs large scale companies and R&D trends in Chinese firms in the different segment of the industry. Indeed, a focus on research and innovation capacity of China is included, to determine the perspective role at World level of this country, in the specific industry. We take into account the cooperation between public and private sector and policies than influence the behaviour of private Chinese firms.

Methodology is based on industry statistics and market data, also at macro and industry level, to drive the reader into a deeper knowledge of the healthcare sector and its fundamental dynamics. Also, we include relevant literature findings and data, on micro level, on the distinction between State Owned firms and private firms which are gaining a g