Economics of Innovation

Optimal innovation balances willingness and ability to pay with the benefits of future R&D. Our wide-ranging programme aims to promote innovation in health care, increase our understanding of its value, and encourage R&D. New models of innovation should streamline development, reduce costs, and speed patient benefit.

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News

Are Cost-Effectiveness Thresholds Fit for Purpose for Real-World Decision Making on Access to and Pricing of Pharmaceuticals? A New OHE Paper on Current Methods and Practices, and a Novel Approach for Optimal Thresholds

3 March 2020

OHE has published a white paper discussing the relative merits and shortfalls of current approaches to defining, estimating, and applying cost-effectiveness thresholds in HTA. This will…

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News

Unpacking the Black Box of Payer Policy: A Demand-Side Approach for Equitable Uptake of Cost-Effective Health Innovation

21 February 2020

People living in Middle and Low Income Countries (MLICs) do not get access to innovative treatments and new treatments meeting MLIC requirements do not come to…

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News

A Final MVAC Blueprint—and the Start of an R&D Revolution?

6 February 2020

TB kills 1.6m people annually – the world’s deadliest infectious disease. The Market-Driven, Value-Based Advance Commitment (MVAC), creates and guarantees a market for better TB treatment.…

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News

OHE Lunchtime Seminar: Personalised Medicine: Is it an oil-rush or oil-spill?

16 January 2020

OHE Lunchtime Seminar with Alistair McGuire, 3rd February 2020. The seminar will present some preliminary thoughts on the promises offered by personalised medicine that it will…

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News

Ethical and Economic Issues in the Appraisal of Medicines for Ultra-rare (or Ultra-orphan) Conditions

13 January 2020

In light of concerns that not all medicines for ultra-rare (also known as ultra-orphan) conditions are appraised under the same NICE process, a new OHE Consulting…

Incentives for R&D: Payment Options and Pricing Challenges
Publication

Incentives for R&D: Payment Options and Pricing Challenges

8 January 2020

The issue of rising prescription drug prices is a concern in every country. Dozens of policy initiatives and hundreds of research projects over last the fifty…

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Publication

A Bargaining Approach: A Theory on ICER Pricing and Optimal Level of Cost-Effectiveness Threshold

1 July 2020

This paper presents a supply and demand model of pharmaceutical markets to analyse the relationship between the value of the Cost-Effectiveness Threshold (CET) and the distribution…

How Should the World Pay for a COVID-19 Vaccine?
Publication

How Should the World Pay for a COVID-19 Vaccine?

1 July 2020

This year’s OHE lecture addresses the question: how should the world pay for a COVID-19 vaccine? Adrian Towse, Emeritus Director of OHE and Senior Research Fellow…

Delivering the 2.4 Percent: Unlocking UK Pharma R&D Investment through Evidence-Based Policies
Publication

Delivering the 2.4 Percent: Unlocking UK Pharma R&D Investment through Evidence-Based Policies

1 June 2020

In the 2017 Industrial Strategy, the Government committed to increasing investment in UK Research and Development to the OECD-average of 2.4% of Gross Domestic Product (GDP)…