We are faced with pressing global challenges including climate change and pandemic preparedness. Expected global losses from pandemics exceed $700 billion per year and climate change will hit staple crop yields. However commercial incentives for innovations to address the challenges are inadequate. We need a combination of push and pull funding to deliver the innovations we need to address these challenges at scale. Market shaping, including through the use of Advance Market Commitments, can help by aligning the commercial incentives for innovation with their social importance.
University of Chicago Associate Professor Rachel Glennerster speaks to the Inter American Development Bank at their internal seminar.