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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.
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.
Agriculture and Climate Change: Part I
With estimated global emissions of 5,969-6,615 metric tons (Mt) of carbon dioxide (CO2) per year, agriculture accounts for about 13.5% of total global anthropogenic emissions of greenhouse gases (GHG). Deforestation contributes about 11.8% of total GHG emissions, releasing about 5,800 Mt CO2 per year. Developing countries are largely responsible for emissions from agriculture and deforestation, with the developing countries of South Asia and East Asia accounting for 17% and 25% of global agricultural emissions respectively. Sub-Saharan Africa (SSA) accounts for about 13% of global emissions from agriculture and 15% of emissions from land use change and forestry. This report examines the biophysical and economic potential of mitigating agriculture and land use GHG emissions, and provides a summary on the current and projected impact of global carbon market mechanisms on emission reductions.
Agriculture and Climate Change: Part II
This report covers two topics related to agriculture and climate change in developing countries. The first section discusses the role of agricultural offsets in mitigating greenhouse gas emissions. Recent negotiations around a post-Kyoto Protocol agreement have included debate about whether agricultural carbon sequestration projects should be eligible under the Clean Development Mechanism (CDM). We examine the reasons for supporting or opposing this type of CDM reform and how these reasons relate to impacts on development goals and smallholder farmers, scientific uncertainty about carbon sequestration, and philosophical disagreement about the use of emission offsets. The second section covers proposed agricultural adaptation activities in Africa and other developing countries. While the majority of developing countries have outlined immediate adaptation needs in National Adaptation Programs of Action (NAPAs), few have made progress in implementing adaptation activities. We find that issues related to financial resources, scientific and technical information, and capacity building continue to challenge developing countries in preparing for the impacts of climate change.
This report provides a general overview of trends in public and private agricultural research and development (R&D) funding and expenditures in Sub-Saharan Africa (SSA). The request is divided into two sections, covering public funding and private funding. Within each section, relevant data is presented on historical funding patterns, the types of research conducted, and which countries within SSA are financing R&D at the highest level. We find that the majority of growth in African public agricultural research funding took place in the 1960s, when real public spending on agricultural research increased 6% a year. From 1971 to 2000 annual growth averaged 1.4% a year. Public financing of agricultural R&D experienced a moderate shift in the 1990s from bilateral and multilateral donor funding to domestic government financing. The shift varied by country, but donor funding dropped for all SSA countries an average of 10%. Private research and development funding is heavily concentrated in developed countries with the United States and Japan the two biggest spenders. Within SSA, private R&D expenditures comprise 2% of all R&D spending. The main private actors in SSA are companies based in South Africa and Nigeria. The private sector is focused on research areas that involve marketable inputs, such as chemicals, seeds, and machines/