R&D for Neglected Diseases

Nicola Dimitri
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Nicola Dimitri: Department of Economics and Statistics, University of Sienna, and Research Fellow, Maastricht School of Management

No 2012/07, Working Papers from Maastricht School of Management

Abstract: In recent years neglected diseases attracted much attention. In particular, a debate has developed on which incentive scheme could be more effective to stimulate R&D investments, by pharmaceutical companies, to treat such diseases. The debate took place in conferences, academic journals, reports and other arenas, and mostly focused on the merits and limitations of push, pulls and mixed push-pull, incentives. Taking this widely spread debate as a starting point, within a stylized economic model this work compares the strenght of alternative incentive schemes for inducing R&D investments. The model is a contribution to shed light on the key forces driving R&D decisions. Under the assumption of expected profit maximizing firms, the main message of the paper is that co-funding incentive schemes appear to be stronger incentives, than constant-sum schemes, in inducing firms R&D effort.

Keywords: neglected; disease (search for similar items in EconPapers)
JEL-codes: D86 L65 O31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2012-06
New Economics Papers: this item is included in nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2012-07.pdf First version, 2012 (application/pdf)

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