Key factors that foster biopharmaceutical innovation in middle-income countries

Key factors that foster biopharmaceutical innovation in middle-income countries

Tim Wilsdon
Life Sciences | Pharmaceuticals

Charles River Associates was commissioned by The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) to produce an independent study on biopharmaceutical innovation in middle-income countries. The objective was to evaluate the policies of host governments that encourage investment in innovation activities and the implications for future innovation policy. The report, “Policies That Encourage Innovation in Middle-Income Countries,” examines growing biopharmaceutical innovation sectors in Brazil, China, Colombia, India, Malaysia, Russia, South Africa, and South Korea and highlights success factors as consistent long-term policy and legal frameworks. These factors should be coupled with effective coordination of national industrial and health policies, encouragement of collaborations among stakeholders, and adequate intellectual property protection. The report further suggests that some countries specialize in those stages of the innovation process in which they have a competitive advantage. Key findings include:

  • The continuing globalization and fragmentation of the innovation process should make it easier for middle-income countries to increase their share of both public and private investment in all stages of research and development.
  • There is a very different opportunity for large markets, such as China, Brazil, and India, versus smaller markets, like Colombia and Malaysia, and therefore they need to adopt targeted, consistent policies tailored to their capabilities.
  • Sustainable innovation requires coordination between health and industrial policy and among academia and public and private sector institutions.

Co-authors of the report included Vice President Tim Wilsdon, Senior Consultant to CRA Jim Attridge, Consulting Associate Eva Fiz, and Associate Satomi Ginoza.

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