Objective: To analyze the compatibility and reason of government and market’s function of essential medicine’s supply security system. Methods: Based on the institutional economics, synergistic effect of relevant policy was analyzed. Results: There was incompatible performance among the policy goals of essential medicine; the biding policy was harmful for competition of supply stage and weakened the role of price signal; the supply policy mitigated the responsibility of pharmaceutical manufacturer and made the transaction activity complecated. Conclusion: The key to essential medicine’s reform should optimize the combination of government and market’s function to generate the synergistic effect of essential medical policy measurement.

Objective: To analyze the institutional design and key issues of essential medicine designated production. Methods: It analyzed the institutional design and key issues based on theoretical and policy study. Results: The relevant institutional design included coordination and incentive mechanism. But coordination mechanism was short of control to supply activity; the quantity uncertainly weakened the role of incentive mechanism; bulk material, production capacity and supply network made the transaction activity complicated. Conclusion: Government should strengthen the coordination of supply activity , release the uncertainty of essential medicine’s quantity by internet information system, monitor the bulk material’s price and production capacity by the pharmaceutical industry association and reduce the complexity of transaction activity by the intermediate supply.

Objective: This article aims to provide empirical evidence for procurement cohesion policies be-tween essential medicine and low-price medicine. Methods: The paper reviews the relevant transaction cost theory and presents the study framwork that was confirmed by the content analysis from relevant provincial policy documents on low-price medicine. Results:Compared with essential medicine lists, low-price medicine lists lacked standardized procedures and institutional control for market entry and exit. More than 65% of provinces directly purchased low-price medicine online, but only 25% of provinces insisted on an economic and technological standards review. 60%of provinces did not build relationships with essential medicine suppliers and public hospitals. There was no pharma-ceutical delivery policy in 60% of provinces and no pharmaceutical payment policy in 80% of provinces. 32% of provinces intended to establish connections between low-price medicine and medical insurance lists, however there were no reimbursement policies of low-price medicine in China. Conclusions:Two polices lacked cohesion in terms of list promulgation, market entry and exist mechanisms, bidding, procurement, utilization, deliveries, payment and reimbursements, which led to difficulties in resolving the shortage of low-price medicine because of pharmaceutical market fragmentation, complex competition, and increasing transaction costs.

OBJECTIVE:To provide reference information for continuous technological innovation of biopharmaceutical enterprises in China.METHODS:Based on theory of continuous technological innovation,we summarized the present situation of technological innovation in China's biopharmaceutical enterprises and analyzed the problems through the way of SWOT;fina lly we put forward the countermeasures.RESULTS&CONCLUSION:If biopharmaceutical enterprises want to develop and grow,they must unite related departments to construct the system of continuous technological innovation.