Innovation in the pharmaceutical industry: New estimates of R&D costs.

The research and development costs of 106 randomly selected new drugs were obtained from a survey of 10 pharmaceutical firms. These data were used to estimate the average pre-tax cost of new drug and biologics development. The costs of compounds abandoned during testing were linked to the costs of compounds that obtained marketing approval. The estimated average out-of-pocket cost per approved new compound is $1395 million (2013 dollars). Capitalizing out-of-pocket costs to the point of marketing approval at a real discount rate of 10.5% yields a total pre-approval cost estimate of $2558 million (2013 dollars). When compared to the results of the previous study in this series, total capitalized costs were shown to have increased at an annual rate of 8.5% above general price inflation. Adding an estimate of post-approval R&D costs increases the cost estimate to $2870 million (2013 dollars).

Institutional designs of customary fisheries management arrangements in Indonesia, Papua New Guinea, and Mexico

There are considerable efforts by governments, non-governmental organizations (NGOs), and academia to integrate marine conservation initiatives and customary practices, such as taboos that limit resource use. However, these efforts are often pursued without a fundamental understanding of customary institutions. This paper examines the operational rules in use and the presence of institutional design principles in long-enduring and dynamic customary fisheries management institutions in Papua New Guinea, Indonesia, and Mexico. Rather than a "blue print" for devising long-enduring institutions, this study relies on the design principles as a starting point to organize an inquiry into the institutional diversity found in customary governance regimes. Three important trends emerged from this comparative analysis: (1) despite it being notoriously difficult to define boundaries around marine resources, almost 3/4 of the cases in this study had clearly defined boundaries and membership; (2) all of the customary institutions were able to make and change rules, indicating a critical degree of flexibility and autonomy that may be necessary for adaptive management; (3) the customary institutions examined generally lacked key interactions with organizations operating at larger scales, suggesting that they may lack the institutional embeddedness required to confront some common pool resources (CPR) challenges from the broader socioeconomic, institutional and political settings in which they are embedded. Future research will be necessary to better understand how specific institutional designs are related to social and ecological outcomes in commons property institutions. © 2011 Elsevier Ltd.

NAFTA and uneven development in the North American apparel industry

The various contributions to this book have documented how NAFTA-inspired firm strategies are changing the geography of apparel production in North America. The authors show in myriad ways how companies at different positions along the apparel commodity chain are responding to the new institutional and regulatory environment that NAFTA creates. By making it easier for U.S. companies to take advantage of Mexico as a nearby low-cost site for export-oriented apparel production, NAFTA is deepening the regional division of labor within North America, and this process has consequences for firms and workers in each of the signatory countries. In the introduction to this book we alluded to the obvious implications of shifting investment and trade patterns in the North American apparel industry for employment in the different countries. In this concluding chapter we focus on Mexico in the NAFTA era, specifically the extent to which Mexico's role in the North American economy facilitates or inhibits its economic development. W e begin with a discussion of the contemporary debate about Mexico's development, which turns on the question of how to assess the implications of Mexico's rapid and pro-found process of economic reform. Second, we focus on the textile and apparel industries as sectors that have been significantly affected by changes in regulatory environments at both the global and regional levels. Third, we examine the evidence regarding Mexico's NAFTA-era export dynamism, and in particular we emphasize the importance of interfirm networks, both for making sense of Mexico's meteoric rise among apparel exporters and for evaluating the implications of this dynamism for development. Fourth, we turn to a consideration of the national political-economic environment that shapes developmental outcomes for all Mexicans. Although regional disparities within Mexico are profound, aspects of government policy, such as management of the national currency, and characteristics of the institutional environment, such as industrial relations, have nationwide effects, and critics of NAFTA charge that these factors are contributing to a process of economic and social polarization that is ever more evident (Morales 1999; Dussel Peters 2000). Finally, we suggest that the mixed consequences of Mexico's NAFTA-era growth can be taken as emblematic of the contradictions that the process of globalization poses for economic and social development. The anti-sweatshop campaign in North America is one example of transnational or crossborder movements that are emerging to address the negative consequences of this process. In bringing attention to the problem of sweatshop production in North America, activists are developing strategies that rely on a network logic that is not dissimilar to the approaches reflected in the various chapters of this book. © 2009 by Temple University Press. All rights reserved.