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European pharmaceutical research and development. Could a public infrastructure overcome market failures?

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Abstract

With a focus on research and development in innovative medicines, this working paper discusses a new European approach to pharmaceutical policy. After examining the European pharmaceutical sector's features, and the strengths and weaknesses of the current research and business model, the study explores the need for and the concept of a European infrastructure with a long-term transboundary mission. Any European medicines infrastructure should focus on threats and research and development areas underinvested under the current business model. More specifically, the study uses an extensive literature review to investigate the feasibility of different options in terms of the scope of the mission and legal, organisational and financial arrangements for establishing such a European infrastructure. Based on their research, the authors present a range of policy options. The most ambitious of these considers a Europe-wide public infrastructure with budgetary autonomy and home-grown research and development capacity. This organisation would be tasked with building a portfolio of new medicines and related biomedical technologies up to the delivery stage over 30 years, in partnership with third-party research centres at the national or European level and with companies. It would be the world's most important global player in biomedical innovation

Suggested Citation

  • Massimo Florio & Chiara Pancotti, 2022. "European pharmaceutical research and development. Could a public infrastructure overcome market failures?," Working Papers 202202, CSIL Centre for Industrial Studies.
    • Handle: RePEc:mst:wpaper:202202
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    More about this item

    Keywords

    coronavirus disease; epidemic; medical research; pharmaceutical expenses; pharmaceutical industry; pharmacy; public health; technology assessment;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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