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EPAR Technical Report #345
Publication Date: 12/01/2017
Type: Literature Review
Abstract

The share of private sector funding, relative to public sector funding, for drug, vaccine, and diagnostic research & development (R&D) differs considerably across diseases. Private sector investment in overall health R&D exceeds $150 billion annually, but is largely concentrated on non-communicable chronic diseases with only an estimated $5.9 billion focused on "global health", targeting diseases that primarily affect low and middle-income countries (LMICs). We examine the evidence for five specific disincentives to private sector global health R&D investment: scientific uncertainty, weak policy environments, limited revenues and market uncertainty, high fixed and sunk costs, and downstream rents from imperfect markets. Though all five may affect estimates of net returns from an investment decision, they are worth examining separately as each calls for a different intervention or remediation to change behavior.

EPAR Technical Report #339
Publication Date: 09/28/2017
Type: Data Analysis
Abstract

An ongoing stream of EPAR research considers how public good characteristics of different types of research and development (R&D) and the motivations of different providers of R&D funding affect the relative advantages of alternative funding sources. For this project, we seek to summarize the key public good characteristics of R&D investment for agriculture in general and for different subsets of crops, and hypothesize how these characteristics might be expected to affect public, private, or philanthropic funders’ investment decisions. 

Code
EPAR Technical Report #329
Publication Date: 05/31/2017
Type: Literature Review
Abstract

This research considers how public good characteristics of different types of research and development (R&D) and the motivations of different providers of R&D funding affect the relative advantages of alternative funding sources. We summarize the public good characteristics of R&D for agriculture in general and for commodity and subsistence crops in particular, as well as R&D for health in general and for neglected diseases in particular, with a focus on Sub-Saharan Africa and South Asia. Finally, we present rationales for which funders are predicted to fund which R&D types based on these funder and R&D characteristics. We then compile available statistics on funding for agricultural and health R&D from private, public and philanthropic sources, and compare trends in funding from these sources against expectations. We find private agricultural R&D spending focuses on commodity crops (as expected). However contrary to expectations we find public and philanthropic spending also goes largely towards these same crops rather than staples not targeted by private funds. For health R&D private funders similarly concentrate on diseases with higher potential financial returns. However unlike in agricultural R&D, in health R&D we observe some specialization across funders – especially for neglected diseases R&D - consistent with funders’ expected relative advantages.

EPAR Research Brief #72
Publication Date: 06/28/2010
Type: Literature Review
Abstract

How development organizations, NGOs, and governments can best allocate scarce resources to those in need has long been debated. As opposed to universal allocation of resources, a more targeted approach attempts to minimize program costs while maximizing benefits among those with the greatest need or market opportunity. Many international development organizations strategically target clients based on geographic location (e.g., community, region, country) or socio-economic indicators, such as the World Bank’s “$1 a day” poverty line. Drawing on literature from several sectors, this brief presents additional methods of beneficiary targeting that international development organizations might consider. We find that beneficiary targeting/segmentation has the potential to make organizational and program efforts more equitable and efficient. With limited resources, smaller organizations have tended to use single robust indicators or simple heuristics, whereas agribusinesses and private sector firms have used more data-intensive marketing tools to position their products. Technological innovation and better access to data have made targeting more prevalent and potentially more affordable in agricultural development. However, creating valid and reliable target segments remains the most significant challenge.