Abstract:Abstract:Objective To analyze the relationship between export trade activities and R&D capital investment in China''s pharmaceutical manufacturing industry, and to provide reference and suggestions for improving the level of R&D investment and innovation ability of pharmaceutical manufacturing industry in China. Methods The data of Chinese medicine manufacturing industry from 1998 to 2015 were selected, and the VAR model was established to carry out co-integration test, impulse response function and variance analysis to explore the correlation between the two. Conclusion The export activities of pharmaceutical manufacturing in our country have a long-term and stable positive effect on R&D investment. For every 1% increase in export trade activities, R&D investment will increase by 1.30%. And this kind of promotion has some lag, with a lag of 3years. Suggestions Government departments and enterprises should correctly understand the positive role of promoting and lag, and through the vigorous development of export trade activities in order to increase R&D investment, and ultimately improve industrial innovation and competitiveness.