Faced with a scarcity of treatments for neglected diseases, experts and governmental organizations have lately proposed to build strong pull incentives around transferable vouchers. Inventors would be granted, and allowed to sell these vouchers to pharmas desiring to extend their exclusive IP rights. However, we know little about how such “Transferable Exclusivity Extensions” fare relative to prizes, who is likely to acquire them and at what cost for society, or how the burden is shared among nations. We shed light on these questions, both from a theoretical perspective and from an empirical analysis of European data.
Vouchers; pull mechanisms; burden sharing; administered drug prices; prizes;
- I18: Government Policy • Regulation • Public Health
- L5: Regulation and Industrial Policy
- O3: Technological Change • Research and Development • Intellectual Property Rights
TSE Working Paper, n. 22-1377, November 2022, revised December 2022