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One of the most important elections, which confront to dedicate itself each possible institute or sake government, to operational funds toward to developing pharmaceutical products for neglected diseases, is between impact and course mechanisms so called. Course mechanisms are those, which the reward to a Firmfromdeveloping increases a new medicine, with the prominent example of a course mechanism, which is the patent system. Impact mechanisms are investments, the costs of the enterprises of the Entwickelns of the drugs reduce (e.g., Kremer and Glennerster 2004). Impact mechanisms cover awide multiplicity of the forms, if the most general structure is the public-private partnerships, the transfer of technology between the general or non-profit institutes and the private enterprises also include. E.G. the individual largest source of the financing of the medical research is the US Government by the national institutes of the health (NIH); the billions, which are spent annually, to have many main break-throughs in medical treatment result in. However the NIH develops not generally drugs to the right through to the commercialization. Rather bends it, early stage marking of the useful means and mechanisms of the activity of the drugs to support as well as the marking of the important therapeutic goals and largely promotes basic research rather as commercial development. Spence (1984) would eliminate observed that without informing asymmetries and obligation problems direct national subsidies for innovation or in-plant government research to the patent system it would have to be before-tightened, there it the uneconomicnesses naturally, those by monopoly pricing.2 was caused and referred research financing, is not so simple: Governments can find it difficult to be able to do it to assign. In practice is usually not government promotion very importantly been, if one made basic research possible however, commercial products supplied. Basic research cannot be valuable frequently formed handels within the 20-annual life of a patent; thus the patent system supplies with to little incentive, in order to take up itself to a high degree risky basic research. But commercial development of a drug can occur within a 10-year old timeframe and grant other 10 years, in order to enjoy the use of the patent monopoly. Like that it is meaningful, so that governments can be included in basic research also, but commercial development, including clinical studies, can be left industry for products, the potential profits.3 offers Push mechanisms include awide variety OF form, with the most common structure being publication-IC-private partnerships involving technology transfer between public or nonprofit institution to and private firms. For example, the single largest SOURCE OF medical research funding is the U.S. government through the national institute OF Health (NIH); the trillion spent annually have resulted in many major breakthroughs in medical treatment. However, the NIH of does emergency generally develop drugs right through tons commercialization. Advice ago, it tends ton support of early steam turbine and gas turbine systems identification OF useful compounds and mechanisms OF action OF drugs, as wave as identification OF important therapeutic targets, largely sponsoring basic research than commercial development. Spence (1984) observed that without informational asymmetries and commitment problem, direct government subsidies for innovation or inhouse government research would fuel element preferable ton the patent system, since it would eliminate inefficiencies caused by monopoly pricing.2 OF course, directing research funding is emergency in such a way easy: governments to May find it difficult ton know-how ton allocate it. Into practice, government sponsorship has been very important in enabling basic research but has typically emergency delivered commercial products. Basic research CAN emergency fuel element larva commercially valuable within the 20-year life OF A patent often; so the patent system of provides little incentive ton undertake highly risky basic research. But commercial development OF A drug CAN occur within A 10-year timeframe, allowing more another 10 years tons reap the benefits OF the patent monopoly. Thus, it makes scythe for governments tons of fuel element involved in basic research, but commercial development, including clinical trias, CAN fuel element left tons industry for products that more offer potential profits.3
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