1. Where to Find the Course: Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal

2. Course Overview: Thinking Through the Problem Stephen M. Maurer Designing Strategies for Neglected Disease Research Law 284.26 Public Policy 190/290

3. Where to Find the Course: Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal

4. Owner’s Manual

5. “The power of instruction is seldom of much efficacy except in those happy dispositions where it is almost superfluous." - Edward Gibbon

6. This is nominally … A Course About a Specific Innovation Problem (Mostly Economics) But you should think of it as … A Course About R&D Incentives Ongoing Research A Course About Giving Practical Advice (A Potential Initiative) The Hard (Also Rewarding, Interesting) Part… Goals

7. Interdisciplinary Problems

8. Three views - Cartoon intuition - “How to do public policy” - A worked example.

9. Interdisciplinary Problems Drugs for U.S. Drugs for Developing World The Problem

10. Political Science – Redistribution Drugs for U.S. Drugs for Developing World Interdisciplinary Problems

11. Biology & Engineering Drugs for U.S. Drugs for Developing World Interdisciplinary Problems

12. This Course (Primarily) Drugs for U.S. Drugs for Developing World Interdisciplinary Problems

13. Incentives Design Drugs for U.S. Drugs for Developing World Interdisciplinary Problems

14. Doing Public Policy - Define Goals  Understand  Identify Bottlenecks  Design a (Hopefully) Elegant Response. Interdisciplinary Problems 2

15. Doing Public Policy - Define Goals  Understand  Identify Bottlenecks  Design a (Hopefully) Elegant Response. 1.Define Goals Choose an Objective Function! Interdisciplinary Problems 2

16. Doing Public Policy - Define Goals  Understand  Identify Bottlenecks  Design a (Hopefully) Elegant Response. 2. Understand Take Theory Seriously - “Pharma doesn’t want to prevent diseases, selling drugs is more lucrative.” - “Prizes are only paid if you get a drug.” *Making Contact Between Theory and Evidence Interdisciplinary Problems 2

17. Doing Public Policy - Define Goals  Understand  Identify Bottlenecks  Design a (Hopefully) Elegant Response. 3. Identify Bottlenecks - What are the Main Innovation Challenges? - The Innovation Toolbox Interdisciplinary Problems 2

18. Doing Public Policy - Define Goals  Understand  Identify Bottlenecks  Design a (Hopefully) Elegant Response. 4. Design a Response - “No dominant incentive mechanism” - What are the Main Innovation Challenges? - The Innovation Toolbox Interdisciplinary Problems 2

19. A Concrete Example: Prizes vs. PPPs Prizes How Big Should the Prize Be? $800m ± $115m PPPs Picking Winners Managing Outsourced R&D Getting the Best Ideas … And Also Patents? Access Pricing

20. Innovation Economics Efficient Procurement (Getting a Good Price) Usually: Efficiency: How intense do we want R&D effort to be? Here: Limited Budget: How much will it cost? Information Asymmetry/Agency Problems (Managing Outsourced R&D) Managers Don’t Know Everything Researchers May Have Diverging Goals Recurring Themes

21. Innovation Economics, ctd… Eliciting Information (Getting Good Ideas) Good Ideas are (Often) Widely Distributed Counterexamples A prizes for reduced DALYs? A prize for optimized drug compounds? Efficient Access Patents Prices matter! Recurring Themes

22. “It’s a Great Idea, But Government Will Never Listen” A Lawyer’s Faith Comment

23. Roadmap

24. LectureTopicSpeaker Week 1 Introduction AK, SM Jan. 13-15 Defining The Goals: Week 2Disease BurdensKirk Smith, Julia Jan. 20-22R&D PrioritiesWalsh Week 3AThe Drug Discovery David Ridley Jan. 27Business Week 3B,Drug Development Jim McKerrow 4A Science; The NeglectedSolomon Nwaka Jan. 29-Disease Pipeline Roadmap

25. LectureTopicSpeaker Week Innovation EconomicsSM, AK 4B – 5B Feb. 5-12 Leading Proposals: Week 6APrice Discrimination and Keith Maskus Feb. 17Patent Pools Week 6BFinancing ProposalsSaul Walker Feb. 19 Week 7APrizesAidan Hollis Roadmap

26. LectureTopicSpeaker Week 7BFunding Clinical TrialsDean Baker Feb. 26 Week 8AAdvanced Market Michael Kremer Mar. 3Commitments Mar. 6Critical Evaluations Due Week 9APrivate Public Suerie Moon Mar. 10Partnerships Week 9BRegulatory ApprovalDavid Kessler Roadmap

27. LectureTopicSpeaker Week 10BPolitical EconomyRichard Wilder Mar. 17-19James Love Week 11-12Incentive Design ChoicesSM, Brian Wright, Mar. 31-Economists RoundtableSuzanne Scotchmer Apr. 9 Week 13Delivering HealthcareJulia Walsh Apr. 14-16Ndola Prata Week 14Student Papers; -- Apr. 20-21Concluding Remarks Roadmap

28. Course Requirements

29. Class Participation (25%) Wiki (In Class Discussion) Lecture Reporter

31. Midterm Project Critique an Existing Initiative (25%) Self-assemble

32. Final Project White Paper (50%) Groups of 4-6 students Ideal: Self-assemble!

33. Logistics Home Page: http://gspp.berkeley.edu/iths/RDStrategies/Home.htm Wiki: https://bspace.berkeley.edu/portal