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Where to Find the Course: Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal. Designing Strategies for Neglected Disease Research Law 284.26 Public Policy 190/290. Course Overview: Thinking Through the Problem. Stephen M. Maurer.
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Where to Find the Course: Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal
Designing Strategies for Neglected Disease Research Law 284.26 Public Policy 190/290 Course Overview: Thinking Through the Problem Stephen M. Maurer
Where to Find the Course: Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal
Owner’s Manual “The power of instruction is seldom of much efficacy except in those happy dispositions where it is almost superfluous." - Edward Gibbon
Goals This is nominally … A Course About a Specific Innovation Problem (Mostly Economics) But you should think of it as … A Course About R&D Incentives Ongoing Research A Course About Giving Practical Advice (A Potential Initiative) The Hard (Also Rewarding, Interesting) Part…
Three views - Cartoon intuition - “How to do public policy” - A worked example.
Interdisciplinary Problems Drugs for U.S. The Problem Drugs for Developing World
Interdisciplinary Problems Drugs for U.S. Political Science – Redistribution Drugs for Developing World
Interdisciplinary Problems Drugs for U.S. Biology & Engineering Drugs for Developing World
Interdisciplinary Problems Drugs for U.S. This Course (Primarily) Drugs for Developing World
Interdisciplinary Problems Drugs for U.S. Incentives Design Drugs for Developing World
Interdisciplinary Problems 2 Doing Public Policy - Define Goals Understand Identify Bottlenecks Design a (Hopefully) Elegant Response.
Interdisciplinary Problems 2 • Doing Public Policy • - Define Goals Understand • Identify Bottlenecks Design a • (Hopefully) Elegant Response. • Define Goals • Choose an Objective Function!
Interdisciplinary Problems 2 Doing Public Policy - Define Goals Understand Identify Bottlenecks Design a (Hopefully) Elegant Response. 2. Understand Take Theory Seriously - “Pharma doesn’t want to prevent diseases, selling drugs is more lucrative.” - “Prizes are only paid if you get a drug.” *Making Contact Between Theory and Evidence
Interdisciplinary Problems 2 Doing Public Policy - Define Goals Understand Identify Bottlenecks Design a (Hopefully) Elegant Response. 3. Identify Bottlenecks - What are the Main Innovation Challenges? - The Innovation Toolbox
Interdisciplinary Problems 2 Doing Public Policy - Define Goals Understand Identify Bottlenecks Design a (Hopefully) Elegant Response. 4. Design a Response - “No dominant incentive mechanism” - What are the Main Innovation Challenges? - The Innovation Toolbox
A Concrete Example: Prizes vs. PPPs Prizes How Big Should the Prize Be? $800m ± $115m PPPs Picking Winners Managing Outsourced R&D Getting the Best Ideas … And Also Patents? Access Pricing
Recurring Themes Innovation Economics Efficient Procurement (Getting a Good Price) Usually: Efficiency: How intense do we want R&D effort to be? Here: Limited Budget: How much will it cost? Information Asymmetry/Agency Problems (Managing Outsourced R&D) Managers Don’t Know Everything Researchers May Have Diverging Goals
Recurring Themes Innovation Economics, ctd… Eliciting Information (Getting Good Ideas) Good Ideas are (Often) Widely Distributed Counterexamples A prizes for reduced DALYs? A prize for optimized drug compounds? Efficient Access Patents Prices matter!
Comment “It’s a Great Idea, But Government Will Never Listen” A Lawyer’s Faith
Roadmap Lecture Topic Speaker Week 1 Introduction AK, SM Jan. 13-15 Defining The Goals: Week 2 Disease Burdens Kirk Smith, Julia Jan. 20-22 R&D Priorities Walsh Week 3A The Drug Discovery David Ridley Jan. 27 Business Week 3B, Drug Development Jim McKerrow 4A Science; The Neglected Solomon Nwaka Jan. 29- Disease Pipeline
Roadmap Lecture Topic Speaker Week Innovation Economics SM, AK 4B – 5B Feb. 5-12 Leading Proposals: Week 6A Price Discrimination and Keith Maskus Feb. 17 Patent Pools Week 6B Financing Proposals Saul Walker Feb. 19 Week 7A Prizes Aidan Hollis
Roadmap Lecture Topic Speaker Week 7B Funding Clinical Trials Dean Baker Feb. 26 Week 8A Advanced Market Michael Kremer Mar. 3 Commitments Mar. 6 Critical Evaluations Due Week 9A Private Public Suerie Moon Mar. 10 Partnerships Week 9B Regulatory Approval David Kessler
Roadmap Lecture Topic Speaker Week 10B Political Economy Richard Wilder Mar. 17-19 James Love Week 11-12 Incentive Design Choices SM, Brian Wright, Mar. 31- Economists Roundtable Suzanne Scotchmer Apr. 9 Week 13 Delivering Healthcare Julia Walsh Apr. 14-16 Ndola Prata Week 14 Student Papers; -- Apr. 20-21 Concluding Remarks
Class Participation (25%) Wiki (In Class Discussion) Lecture Reporter
Midterm Project Critique an Existing Initiative (25%) Self-assemble
Final Project White Paper (50%) Groups of 4-6 students Ideal: Self-assemble!
Logistics Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal