The Economic Organization of Biomedical Research in US

Abstract

"This paper analyses the economic organization of biological materials and research in the United States, focusing particularly on human biological materials and biomedical research. The economic nature and the property rights arrangements that govern biological materials and biomedical research are quite complex, which has a important implications for developing comprehensive research collections and exchanges. There is no signal market for exchange nor is there a discernable 'commons': biomedical exchange involves a number of different types of transactions and many centers of decision making. Theories of efficient governance predict that biomedical exchange is best organized using polycentric principles and diverse contracting mechanisms, property rights, and regulatory schemes. Contracting mechanism include market, trilateral, and relational contracting principles. Intellectual property rights arrangements include unrestricted access and use, confidentiality and proprietary information agreements, licenses, and patents. Regulatory solutions include limited regulation, self-regulation, and third party-ordering. The organization of biomedical research in the U.S. provides an excellent opportunity for further research on efficient governance."