i
Our call to publish in our next issue is now open!
The Revista de Derecho Económico (Journal of Economic Law) invites the academic community, both national and international, to send their articles to our website, in the "Send article" section. The article must comply the rules indicated in the "Submissions" section.
The call is open untill October 15, 2023.
The limits of the Entrepreneurial State in pharmaceutical innovation: A principal-principal model perspective
Authors
-
Katherine Flórez Pinilla
Universidad Externado, Colombia
https://orcid.org/0000-0002-6966-2075
Abstract
Mazzucato (2021a and 2022) proposes a change in the role of the state,
advocating active and collaborative intervention in market creation through mission
design. She challenges the previous regulatory approach, highlighting the importance
of direct state intervention in research, production and procurement of anti-covid
vaccines. This paper analyzes the risks of mission design from the principal-principal
theory. Despite Mazzucato’s recommendations on conditions for public investment
(2021b), such as interventions in business structure and pricing, the missions reveal weaknesses. Pharmaceutical companies held patents, imposed conditions and benefited
economically from public funds, evidencing economic limits in information asymmetries, transaction costs and incentive imbalance. In conclusion, Mazzucato’s approach
has generated opportunities and challenges. Although it seeks to strengthen the State,
the reality shows profound flaws in its economic intervention, revealing problems such
as the ambiguity between invention and innovation and the lack of compliance with the
recommendations made.
Keywords:
Entrepreneurial State, missions, principal-agent model, principal-principal model, incentivesReferences
* Aguirre, Natalia, Catalina Gómez, Ana Calle, Ricardo Cardona, Libia Diez, Luis Santamaría, Ruth Ramírez, Carlos Chinchilla y Jorge Sánchez (2021). «Reacciones adversas asociadas a vacunas contra la covid-19». CES Medicina, 35 (3): 230-243. DOI: 10.21615/cesmedicina.6282.
* Al-Kuraishy, Hayder, Ali Al-Gareeb, Maisra El-Bouseary, Fatma Sonbol y Gaber El-Saber Batiha (2023). «Hyperviscosity syndrome in covid-19 and related vaccines: Exploring of uncertainties». Clinical & Experimental Medicine, 23 (3): 679-88. DOI: 10.1007/s10238-022-00836-x.
* Araya, Fernando (2020). «Panorama de Chile en la política de competencia en mercados de la salud, medicamentos e insumos». En Juan David Gutiérrez (editor), Retos del covid-19 para el derecho y la política de competencia en América Latina y el Caribe (pp. 41-50). Bogotá: Capítulo América Latina de ASCOLA. Disponible en https://bit.ly/3tkKk28.
* Awasti, Kshitij (2017). «Taking stock of the principal-principal agency perspective: A review and the way ahead». En S. Raghunath y Elizabeth L. Rose (editores), International Business Strategy (pp. 17-42). Londres: Palgrave Macmillan.
* Ayala, José (1992). Límites del mercado, límites del Estado. Ensayos sobre economía política del Estado. Madrid: Instituto Nacional de Administración Pública.
* Calabresi, Guido (1975). «Concerning cause and the law of torts: An essay for Harry Kalven, Jr.». University of Chicago Law Review, 43 (1): 69-108. Disponible en https://bit.ly/3RplZ3i.
* Cano, Eduardo y Carlos Cano (2009). «Los contratos, las asimetrías de la información en la salud, el riesgo moral y la selección adversa». Escuela Superior de Administración y Negocios, (67): 5-20. DOI: 10.21158/01208160.n67.2010.481.
* Cooter, Robert y Thomas Ulen (2002). Derecho y economía. Ciudad de México: Fondo de Cultura Económica.
* Dhaewadkar, Bavi, Gerard George y Pamela Brandes (2000). «Privatization in emerging economies: An agency theory perspective». Academic Management Review, 25 (3): 650-689. DOI: 10.1111/j.1740-8784.2007.00090.x.
* Foss, Nicolai y Peter Klein (2012). Organizing entrepreneurial judgment: A new approach to the firm. Cambridge: Cambridge University Press.
* Gil, Luis (2020). «Regeneron failed to disclose Barda funding in their REGN-COV2 patent». KEI Research Note, 4: 1-9. Disponible en https://bit.ly/48kVDpN.
* Hayek, Friedrich (1997). «El uso del conocimiento en la sociedad». Revista Española de Investigaciones Sociológicas, 80: 215-226.
- (2011). «La competencia como proceso de descubrimiento». Revista de Derecho Administrativo, (10): 259-265. Disponible en https://bit.ly/46Y3PLC.
* Karlson, Nils, Christian Sandström y Karl Wennberg (2021). «Bureaucrats or markets in innovation policy? A critique of the entrepreneurial State». Review of Austrian Economics, 34 (1), 81-95.
* Klein, Peter, Joseph Mahoney, Anita McGahan y Christos Pitelis (2010). «Toward a theory of public entrepreneurship». European Management Review, 7 (1): 1-15.
* Kirzner, Israel (1997). «Entrepreneurial discovery and the competitive market process: An austrian approach». Journal of Economic Literature, 35 (1): 60-85.
* Kremer, Michael, Jonathan Levin y Christopher Snyder (2020). «Advance market commitments: Insights from theory and experience». American Economic Association, Papers and Proceedings, 110: 269-73.
* Lalani, Hussain, Jerry Avorn y Aaron Kesselheim (2022). «US taxpayers heavily funded the discovery of covid‐19 vaccines». Clin Pharmacol Ther, 111 (3): 542-544. DOI: 10.1002/cpt.2344.
* Li, Linda (2013). «Price discrimination and bargaining power in the global vaccine market». Tesis Trinity College, Universidad de Duke. Disponible en https://bit. ly/3NvcrSV.
* Lobo, Félix (2022). «Los acuerdos previos de compra de vacunas: Una contribución fundamental desde la economía. Experiencia europea». Papeles de Economía Española, 173: 179-200.
* Mazzucato, Mariana (2021a). Misión economía. Una guía para cambiar el capitalismo. Barcelona: Taurus.
- (2021b). No desaprovechemos esta crisis. Barcelona: Galaxia Gutenberg.
- (2022). El Estado emprendedor. La oposición público vs. privado y sus mitos. Barcelona: Taurus.
* McCaffre, Matthew (2014). «On the theory of entrepreneurial incentives and alertness». Entrepreneurship Theory and Practice, 38 (4): 891-911.
* Mingardi, Alberto (2015). «A critique of Mazzucato’s entrepreneural State». Cato Journal, 35 (3): 603-525.
* Murtinu, Samuele, Nicolai Foss y Peter Klein (2022). «The entrepreneurial State: An ownership competence perspective». En Karl Wennberg y Christian Sandström (editores), Questioning the entrepreneurial State: International studies in entrepreneurship (pp. 57-74). Cham: Springer.
* Pérez-Nieto, Orlando, César Alonso-Bello, Ernesto Deloya-Tomas, Luis Del Carpio-Orantes, María Maya-Mejía, Úrsula Medina, Rafael Almendra-Pegueros y Marian Phinder-Puente (2023). «Adverse effects associated with the first dose of the Pfizer-Biontech covid-19 vaccine in healthcare workers from Mexico: A case serie from passive surveillance». COVID, 3 (85): 1209-1219. DOI:1 0.3390/Covid3080085.
* Su, Yiyi, Xu Dean y Phillip Phan (2008). «Principal-principal conflict in the governance of the Chinese Public Corporation». Journal Management and Organization Review, 4 (1): 17-38.
* Young, Michael, Mike Peng, David Alhstrom y David Bruton (2002). «Governing the corporation in emerging economies: A principal-principal perspective». Academy of Management Proceedings, 2 (1): 1-8.
* Zúñiga-Vicente, José, César Alonso-Borrego, Francisco Forcadell y José Galán (2014). «Assessing the effect of public subsidies on firm R&D investment: A survey». Journal of Economic Surveys, 28 (1), 36-67.
