Between State and Market – What Role for Strategic Chinese Financing Vehicles in Developing New Antimicrobials?

COVID-19 has refocused global attention on infectious diseases, and the role of the state in research and development (R&D) to solve societal problems – such as the under-supply of new antimicrobials. These have characteristics of a ‘public good’ that is socially important but insufficiently supplied by the market. Antimicrobial resistance (AMR) requires global R&D responses. China is an increasingly important science power with a history of strategic industrial and innovation policy. ‘Government guidance funds’ (GGFs) – strategic industry financing mechanisms – have invested around US$0.88 trillion over the last decade, including in pharma and biotech. Our research examines GGFs’ support to developing antimicrobials. It finds that GGFs are responsive to policy changes but have a weak social mandate and limited ability to support ‘public goods’-type investments, such as antimicrobials. However, they are likely to be an important future R&D funding source, and a possible space for engagement by international organisations.

This brief is an output of the project: ‘Mapping capabilities and developing policy positions to influence funding and practice to develop and strengthen the pipeline of AMR discovery R&D in UK and China’. The project is kindly supported by University of Warwick and the UKRI Research England Policy Support Fund. The output is based on research conducted through the UKRI-MRC project: ‘CHNUK: Integrated platforms from science to policy in response to antibacterial resistance’ (MR/S014934/1).