The BRIC countries -- Brazil, Russia, India, and China -- are playing an increasingly important role in innovation. Their growing domestic markets demand goods that meet their specific needs, and their dynamic export industries are moving beyond simple imitation. This change is true in health technologies, such as vaccines, drugs and diagnostics, as well as in IT and other areas.
As innovation capabilities in emerging economies grow, many are looking to these countries to correct the global health research and development (R&D) imbalance that leaves the poor without needed products such as an improved tuberculosis (TB) vaccine or tests to help diagnose patients in remote rural settings.
India, which has already played such an important role in manufacturing affordable antiretroviral drugs, vaccines, and other essential health commodities for developing countries, has been a focus of these hopes. But is India ready to play a leading role in health R&D? Are Indian companies interested in new products for the poor, or are they focused, like their more established Western competitors, on more lucrative opportunities serving patients who can pay more for medicines?
Over the past year, the Results for Development Institute (R4D) has taken a close look at the potential of Indian innovators to create life-saving technologies for diseases of the poor.
R4D's study concludes that India has much to contribute to global health R&D, but Indian innovators cannot meet this challenge alone, and important obstacles still have to be addressed. Furthermore, India's potential over the next few years is different across different classes of products, with the country better poised to contribute in vaccines and diagnostic tests than in traditional drug development.
Until India's formal compliance with the Agreement on Trade Related Aspects of International Property (TRIPS) in 2005, Indian firms didn't have to come up with brand new products to stay in business. Instead, flexibilities in the country's intellectual property rules allowed firms to build business models around efficient, low-cost production of existing health technologies, helping them to provide vital medicines to millions of patients around the world. Indian pharmaceutical and biotechnology companies spent little on R&D, and didn't have an incentive to build strong links with scientists, in India or abroad.
Since the implementation of TRIPS seven years ago, firms have had to adjust their business strategies, and many have started to invest in new product development. But different sectors have approached this shift in different ways, with important implications for global health:
Although the different sectors of India's biomedical industry will likely follow distinct trajectories, R4D's study found that they share a series of common challenges, including shortages of qualified R&D managers, weak venture capital markets, and out-of-date and overwhelmed regulatory systems. The Indian government is beginning to address these issues through significant investments in education, financing, regulatory reform and infrastructure, but there is a way to go before these systemic challenges will be overcome.
One of the study's key findings is that strengthening innovation in general will not be enough: specific measures will be necessary to harness India's growing technological prowess for public health purposes.
In most cases, markets for neglected disease products are too small to cover the costs of R&D, and Indian firms face the same incentives as today's multinational firms to innovative for wealthy populations. Stronger and more predictable demand from India's own government health services for needed vaccines, drugs, and tests would help, but programs to support R&D in key areas should be expanded as well.
Those initiatives must be driven by the Indian government, but donor agencies and international partners should continue to lend a hand by creating funding programs that complement government initiatives and focus on diseases of the poor, promoting technology transfer and clarifying the patent landscape for needed products, and articulating their top international procurement priorities.
These are just a few of the steps that international partners can take to help India fulfill its promise as a developer of new global health technologies.
For further analysis, read "India's Role in Global Health R&D" by Paul Wilson and Aarthi Rao.
The co-authors of the blog are R4D Senior Technical Consultant Paul Wilson and R4D Program Officer Aarthi Rao.
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