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

Abstract

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.