Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate...

download Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

of 18

Transcript of Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate...

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    1/18

    Promoting Innovation to

    Solve Global Challenges

    Opportunities for R&D in agriculture,climate change, and health

    Michael Kremer

    Gates Professor of Developing Societies

    Department of Economics

    Harvard University

    Heidi Williams

    Ph.D. Candidate

    Harvard University

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    2/18

    2008 Te German Marshall Fund o the United States. All rights reserved.

    No part o this publication may be reproduced or transmitted in any orm or by any means without permission

    in writing rom the German Marshall Fund o the United States (GMF). Please direct inquiries to:

    Te German Marshall Fund o the United States

    1744 R Street, NW

    Washington, DC 20009

    1 202 683 2650

    F 1 202 265 1662

    E [email protected]

    Tis publication can be downloaded or ree at http://www.gmus.org/publications/index.cm. Limited print

    copies are also available. o request a copy, send an e-mail to [email protected].

    GMF Paper Series

    Te GMF Paper Series presents research on a variety o transatlantic topics by sta, ellows, and partners othe German Marshall Fund o the United States. Te views expressed here are those o the author and do not

    necessarily represent the view o GMF. Comments rom readers are welcome; reply to the mailing address above

    or by e-mail to [email protected].

    About GMF

    Te German Marshall Fund o the United States (GMF) is a non-partisan American public policy and

    grantmaking institution dedicated to promoting greater cooperation and understanding between North America

    and Europe.

    GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders

    to discuss the most pressing transatlantic themes, and by examining ways in which transatlantic cooperation can

    address a variety o global policy challenges. In addition, GMF supports a number o initiatives to strengthendemocracies.

    Founded in 1972 through a gi rom Germany on the 25th anniversary o the Marshall Plan as a permanent

    memorial to Marshall Plan assistance, GMF maintains a strong presence on both sides o the Atlantic. In addi-

    tion to its headquarters in Washington, DC, GMF has seven ofces in Europe: Berlin, Bratislava, Paris, Brussels,

    Belgrade, Ankara, and Bucharest.

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    3/18

    Promoting Innovation to Solve Global Challenges

    Opportunities for R&D in agriculture,climate change, and health

    A R G M F U S

    S 2008

    M K*

    G P D S

    D E

    H Uy

    H W*

    P.D. C

    H Uy

    I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    Vy y . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    P w . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

    3.1 Ex ante . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

    3.2 M ex post, w y, . . . . . . . . . . . . . . . . . . 7

    3.3 Ex post y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

    T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

    C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

    R. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

    *M K G D E H Uy. H w Bk I, - w C G D, y w N B E R. Ay, w A Ay A S-, MA Fw P Fy Fw, w Y G Ly W E F. P K x ,, z. H R G y Strong Medicine: Creating Incentives forPharmaceutical Research on Neglected Diseases.

    H W P.D. D E H Uy. H y y q k.

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    4/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health3

    Innovative pull

    mechanisms

    can complement

    the set of more

    traditional foreig

    aid mechanisms

    resulting in an

    expanded and

    more flexible

    set of tools

    for addressing

    development

    policy goals.

    Introduction

    1T y y

    y, ,

    . A y x

    w .

    S y w

    : .

    P z

    y-

    , x

    (RD) . P ,

    , w

    y w

    .

    P

    . I ,

    RD y - z

    -

    w w

    . I U S, x,

    z N

    I H (NIH) ,

    w z

    y k

    y I Py R (IPR)

    y y. F RD

    w- ,

    w RD y w

    -y .

    IPR y y

    . T

    y w w

    , , y w

    w k

    RD . O

    y IPR k

    w w

    w w (

    )w yy z (

    , ) w

    w

    y . Hw,

    y IPR

    . T , k

    x ,

    w w

    w x .

    A w y - w

    xz

    y . I , w

    x w

    x

    w- .

    I

    ,

    x x

    y .

    My

    y - , A Mk C (AMC)

    y Iy,

    U K, C, Nwy,

    R w B M G

    F. Ex w

    w

    A, E,

    y, yk

    y .

    T

    w RD

    IPR y.

    I S 2, w w

    y IPR ,

    x IPR y,

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    5/18

    The German Marshall Fund of the United States4

    y, x IPRy. I S 3, w y

    w:

    ex ante (S 3.1),

    ex post w--y

    (S 3.2), ex post

    y j (S 3.3). W

    w

    , ky

    . W

    x w

    y y : -

    w- (S 4),

    w-

    y (S 5),

    w

    (S 6). S 7 z

    x w

    w

    .

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    6/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health5

    P y ( IPR

    y y ) y

    ( IPR y

    y ). T y ,

    w w x y

    .

    O y y

    y . A K

    (1998), x

    y

    Dy y, y L Jq M D 1837. I

    1839, F

    Dy y

    qy q y

    . Fw

    y, Dy y w y

    ww y w

    y .

    S y -

    RD w y ,

    w w

    (

    y). P y

    -

    k w

    y y k

    y

    ( ) w

    x . K (1998)

    y w

    .

    A x y

    M I Pz F.

    A x z w

    y L (2005). I

    , y w

    k . Hw, ww k xy,

    w w y

    w w y

    w y M

    I Pz F. L (2005)

    y

    w .

    Vy y

    w IPR

    y,

    RD ( y w w

    w z w y

    y w z

    y , y

    w y

    ). My

    M I Pz F w

    IPR y, w

    y

    y w w

    y IPR y

    w z .

    A w y

    w ,

    . Tyy, y

    wk .

    U IPR y, y

    k z

    w w

    , . I

    x, y y w

    w y y w .

    T y

    w w

    IPR y.

    Voluntary versus mandatory

    institutions2

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    7/18

    The German Marshall Fund of the United States6

    In an ideal world,

    pull programs

    would credibly

    commit to reward

    appropriate

    innovations, butat the same

    time would not

    commit sponsors

    to have to pay

    for innovations

    that end up not

    being useful or

    desirable.

    I , 1

    w w w y.

    I w, w y

    w ,

    w

    y

    . A w

    y wy w

    . I , w

    w y:

    ex ante (S 3.1),

    ex post w--y

    (S 3.2), ex post y j (S 3.3).

    T , w k x

    z y B

    . I 1707, E

    j

    wy E

    . My

    y

    w , w

    w . T L , B

    z 20,000

    w .

    T B L x

    y , w

    y kk J H.

    T kk w

    y

    y,y

    (w y

    w y ),

    . I k 12 y w

    w w

    z. I k j, S

    1 My x w K G (2004).

    (1996) y w y; B L w

    j q .

    S w x. O

    , x z

    . O ,

    y kk

    z y y

    k y w w

    . Pz k

    y , w

    w y

    j

    w .

    Bw, w

    w y . W

    ex ante (S 3.1),

    ex post, w--y

    (S 3.2), ex post

    y j (S 3.3)w

    , wy y

    ky .

    3.1 Ex ante technical specifications

    O w w

    y x, z

    w

    ex ante.

    A x z

    Wk Pz, w w 1908 w

    F L T

    zz

    17 y. T z y

    w

    ,

    w y

    . Fy, 1997, z w w

    Potential triggers for rewards1

    3

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    8/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health7

    One issue with

    basing pull

    mechanism

    reward payments

    solely on technic

    specifications se

    ex ante is that

    products may be

    developed which

    in a strict sense

    meet the technic

    specification but

    for some reason

    are not desirable

    to consumers.

    P Aw W F L T.

    A x

    K z, 1959 y Hy

    K -

    w . T K Pz 50,000

    w w 1977 -w

    y . Tw K z

    -w w w,

    y w.

    I 1919, Nw Yk w

    z $25,000 y

    A, w P

    Nw Yk. A

    , 25-y- C L

    S S.

    L, w k, w,

    w . T

    A

    1927.

    A z

    . T A X Pz

    $10 z z

    w w w wk. T

    z w w 2004, q

    z w A

    X Pz 2006, A X Pz 2006,

    G L X Pz 2007.

    F ky y

    x

    z w y y

    w y k

    ( , S 4), x z w

    y k

    j

    y . I

    , P-I N GUI

    (G U I) y,

    ky

    y y w . F y y

    , y

    w

    y ( w

    w y )

    w w y x

    ex ante

    j

    , w y x

    .

    3.2 Metrics ofex postuse, willingness to pay,

    or impact

    O w w

    y y ex

    ante y w

    .

    T K z -w ,

    x, w y

    j

    y .

    A j y

    x ,

    y

    w y

    ex post

    y .

    A x w w y

    ex post w S 4,

    x AMC

    w- . I w

    w y

    ex post

    y x,

    . F

    x, y x, ex post

    y w. I

    w- ,

    y z y

    (y, UNICEF), w

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    9/18

    The German Marshall Fund of the United States8

    k y y. I x, y

    .

    3.3 Ex postdiscretion by a committee

    A y

    w y

    ex post. I w ex ante

    w w

    wy

    w w

    ; q

    j w

    . F x, w

    w N Pz;

    w ex ante.

    A w y ex post

    y y

    w N Pz, y

    w

    ex ante ( ex

    postj w ) w

    k . O

    x ex post y

    y

    w ex ante

    ex post. F x, ex ante

    y w w , ex post

    y w

    w

    w

    wk wk w

    , w

    w k

    z y w.

    C y ex post

    , y

    x. O wy

    q w

    y w w , x,

    w w w

    y .

    A

    w , wy

    y ky

    . O ,

    w y . F x,

    y

    y w w y j y

    . O ,

    w w y x

    ex ante

    j

    y x. O

    ,

    ky

    y,

    w y y y

    w y w w (

    j). O , y y

    w w

    j . I

    y y

    ex post

    , w w S 4;

    .

    T y , w w

    x w

    y y : -

    w- (S 4),

    w-

    y (S 5),

    w

    (S 6).

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    10/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health9

    Like other pull

    mechanisms,

    AMCs do not

    require sponsors

    to make decision

    about which

    technological

    approaches are

    most promising

    or whether it

    is technically

    feasible to

    produce the

    product at all.

    O AMk C (AMC), w

    y x

    -

    .

    R ,

    RD

    . P

    y

    k xz

    RD y y y

    w k-j . Lw

    y y

    w

    x k .

    F, y

    -y

    ex ante

    w

    RD ,

    z

    y w x

    . T x

    w , w

    k y RD

    . S, w RD

    , kw y RD

    RD w

    y , y

    w RD

    k

    y y y .

    AMC y w

    k . U

    AMC, (

    , ) y

    w x -

    (

    ) ,

    k

    y ,

    ex ante

    (

    y ). T

    , x

    -

    y . I , AMC y w .

    T y

    ,

    . T AMC

    - (

    - y) w -

    ( ).

    Lk , AMC

    q k w

    w y

    . T y y w

    y w y

    . I

    w

    . O ,

    , AMC w xy

    - x

    , y y

    x ( B

    . 2007).

    AMC k

    w y y

    ,

    . T

    Health innovations

    4

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    11/18

    The German Marshall Fund of the United States10

    A number of

    governments

    Italy, the United

    Kingdom, Canada,

    Norway, and

    Russiatogetherwith the Bill &

    Melinda Gates

    Foundation

    recently

    announced a

    $1.5 billion

    pilot AMC for a

    pneumococcal

    vaccine suitable

    for children in the

    developing world.

    RD w y ,

    w

    -

    w w

    w. T k x,

    . S y

    - w ky

    - . T y

    w y

    w w k

    k . T yw

    w y

    . Rq

    w wy

    z .

    A Iy, U

    K, C, Nwy, R

    w B M G F

    y $1.5 AMC

    w. U.K. P M GBw

    AMC

    w.

    W U

    S AMC ( , x,

    U.S. S z

    P Ey P AIDS R,

    PEPFAR), j .

    Ay, k

    1.6

    . I ,

    , y

    y. P

    x

    w,

    . A

    U S y,

    w

    w. T

    w

    w

    HIV ,

    y wk

    .

    T w w

    AMC wk y

    y , k

    . F k

    , RD ,

    y

    w w k

    x

    - y w

    w - -

    w. T ky w , y x

    y y w ,

    ww -

    - k

    .

    F y , yk

    y

    w y w ,

    w

    y w ,

    y . S

    y

    x

    w w

    w

    x. S RD y

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    12/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health11

    y ky w , y

    .

    A w

    . A

    w

    k , q, k.

    O y w

    y ,

    y y

    y y . F ,

    ky

    w .

    F y , k

    , y w

    w k k,

    z y . F w

    y y kw y

    w w w z

    y, y

    wy w y w y

    . O , w k

    y y , w

    w

    w ,

    w w, w

    y . F y

    , AMC y

    y w

    y w

    k -y ( ),

    w w. O

    , y ,

    w y w

    . AMC y k

    y y .

    I AMC

    y y y 1015 y

    w

    w w

    , w

    xy - x. T

    AMC y y wk

    AMC .

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    13/18

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    14/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health13

    A, y y 50 90 .

    K (2006)

    , -

    , , ; - w;

    z w ; -

    ;

    .

    S j k

    y w

    , w y y . O

    y w y- w

    w

    y y. Py

    k

    w w

    y, w y

    y

    w y.

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    15/18

    The German Marshall Fund of the United States14

    Pull mechanisms

    could also

    be applied in

    the context of

    technologies to

    address globalwarming and

    climate change.

    P x w

    . T U.S. y

    y z, -

    H-z

    y y. Sy, A X

    Pz, y X Pz F,

    . T z

    w w

    (y x

    100 q y)

    k, j

    y, , , .O z

    x, U.S. R

    J MC $300 z

    y w

    y .

    K (2006) AMC-k z

    y ,

    w , -k w-

    y, ,

    z y .

    A -

    w

    ,

    kk

    ( , z

    ) ( ,

    y ).

    W (2008) x

    x. S

    z , -

    y x

    . S y

    x

    x y w,

    w

    k .

    A q ,

    w y

    w w

    . S q

    x

    ( w ),

    y.

    I w

    w k y

    , w y

    y/ . F x, y w ky

    , ,

    w , .

    w ky

    w y k

    w AMC

    . O , w

    q y

    y

    q.

    T

    y -

    , y

    y . A ky

    y y

    ,

    wy y w j

    y y . I

    wk

    j : y

    j ww y

    j, y w.

    I w -

    w- , y w y

    y y .

    Climate change innovations

    6

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    16/18

    Promoting Innovation to Solve Global Challenges:

    Opportunities for R&D in agriculture, climate change, and health15

    Greater

    transatlantic and

    global cooperati

    in designing and

    implementing

    such mechanism

    could accelerate

    learning and help

    inform public

    policy decisions

    to address globa

    challenges.

    P AMC j k y

    w y. Ex w

    w ky

    y

    w y . I

    w k

    y w

    . T ,

    w y w k

    y , q w

    -- .

    A x y,

    U.S. P A w 1790,

    w w ,

    w w , w

    , . Lkw, w

    .

    W (2001) w W W

    II, qy

    w y ,

    y y

    w y w (Rw

    2002). Wk y V B,w

    y , ,

    y y-

    -w -

    k

    U S.

    W

    w

    w , w

    ,

    w , w

    w RD. S

    w

    , y

    y -

    . G

    y .

    Conclusions

    7

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    17/18

    The German Marshall Fund of the United States16

    B, E, R G, M K,J L, R L, G Wzk, H

    W (2007), A k

    : E

    , Health Economics 16(3):

    491511.

    B, E, P Py, B

    W (2003), T CIAT-P :

    I y y

    ,

    .

    D, J (1997), Guns, Germs, and Steel

    W.W. N C.: Nw Yk.

    J, D R E (2000),

    Hw wy A? Ty

    y,American Journal of

    Agricultural Economics 82(3): 73749.

    K, T (2006), Pz

    , D P 2006-08, T

    H Pj, T Bk I:

    W DC.

    K, M (1998), P y-: A

    , Quarterly

    Journal of Economics 113(4): 11371167.

    K, M R G

    (2004), Strong Medicine: Creating Incentives for

    Pharmaceutical Research on Neglected Diseases,

    P Uy P: P NJ.

    K, M Ax P Zw (2004),

    E

    , World Development33(1): 87105.

    L, J (2005), Tw

    , P W

    H Oz (WHO) C

    I Py R, I, P

    H O F.

    M, W K W (2000), C

    y, .

    Rw, Fy (2002), T P Rw

    P, Learned Publishing15: 247258.

    S, D (1996), Longitude: The True Story of

    a Lone Genius Who Solved the Greatest Scientific

    Problem of His Time. F E: L.

    W, Mw (2008), F ,

    z, New York Times 26 M.

    W, A (2001), Editorial Peer Review: ItsStrengths and Weaknesses, A Sy

    I S Ty: S

    S, MD.

    References

  • 8/8/2019 Promoting Innovation to Solve Global Challenges: Opportunities for R&D in Agriculture, Climate Change, and Health

    18/18

    Off i c e s

    Washington Berlin Bratislava ParisBrussels Belgrade Ankara Bucharest

    www.gmu.org