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Financing Sustainable Drug Development for Neglected Diseases: A Case of Push-Pull Mechanisms and Global Public Goods


  • Jimmy Le

    (Paris School of International Affairs (PSIA), Sciences Po, Paris)


Neglected tropical diseases (NTDs) often afflict the poorest populations of the world. This observation suggests that while demands for new drugs against NTDs continue to grow, there is still a low profit margin for any innovation produced. As a result, there are few incentives for private industrial investments in drugs R&D for neglected diseases, and thus, urgent need for a new set of mechanisms to drive research towards these often 'forgotten' issues. One possible solution comes in the form of a collaborative partnership where drugs for neglected disease are seen by public, private and philanthropic organs as global public goods. In this scenario, multilateral collective action creates an artificial market where there are fewer risks for innovators and more results for benefactors. Coupled with policy-based push-pull mechanisms, these collaborations, like the Drugs for Neglected Diseases Initiative (DNDi), mitigate the challenges of a failed market and represents a paradigm for other potential sustainable development collaborations, post-2015.

Suggested Citation

  • Jimmy Le, 2014. "Financing Sustainable Drug Development for Neglected Diseases: A Case of Push-Pull Mechanisms and Global Public Goods," The Economic and Social Review, Economic and Social Studies, vol. 45(2), pages 245-259.
  • Handle: RePEc:eso:journl:v:45:y:2014:i:2:p:245-259

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    References listed on IDEAS

    1. Mueller-Langer, Frank, 2013. "Neglected infectious diseases: Are push and pull incentive mechanisms suitable for promoting drug development research?," Health Economics, Policy and Law, Cambridge University Press, vol. 8(2), pages 185-208, April.
    2. Toole, Andrew A., 2011. "The impact of public basic research on industrial innovation: Evidence from the pharmaceutical industry," ZEW Discussion Papers 11-063, ZEW - Leibniz Centre for European Economic Research.
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    Cited by:

    1. Aerts, CĂ©line & Sunyoto, Temmy & Tediosi, Fabrizio & Sicuri, Elisa, 2017. "Are public-private partnerships the solution to tackle neglected tropical diseases? A systematic review of the literature," Health Policy, Elsevier, vol. 121(7), pages 745-754.

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