Commercial Incentives

Push incentives reduce the cost and risk of drug research and development. Pull incentives create demand-side commercial rewards such as advance market commitments and subsidies. Pulley mechanisms are proposed as research models that amplify existing research outputs for large impact from modest investment. Cost-based pricing weakens incentives to fund studies that improve dosing guidance for existing medicines. Weak intellectual property and market-exclusivity protections can make paediatric medicine development in LMICs commercially unattractive. Limited market size, low ability to pay, and cost-based pricing further reduce incentives for paediatric drug research in LMICs.