Mariana Mazzucato - The Value of Everything - Making and Taking in the Global Economy

37. Foley, ‘Rethinking financial capitalism and the “information” economy’.

38. The Economist , 8 August 2015: http://www.economist.com/news/leaders/21660522-ideas-fuel-economy-todays-patent-systems-are-rotten-way-rewarding-them-time-fix

39. C. Forero-Pineda, ‘The impact of stronger intellectual property rights on science and technology in developing countries’, Research Policy 35(6) (2006), pp. 808–24.

40. E. M. F. t’Hoen, The Global Politics of Pharmaceutical Monopoly Power: Drug Patents, Access, Innovation and the Application of the WTO Doha Declaration on TRIPS and Public Health (Diemen: AMB, 2009).

41. M. Mazzucato, The Entrepreneurial State: Debunking Private vs. Public Sector Myths (London: Anthem Press, 2013).

42. Source: US Department of Health and Human Services: http://www.hhs.gov/opa/reproductive-health/stis/hepatitis-cand World Health Organization: http://www.euro.who.int/en/health-topics/communicable-diseases/hepatitis/data-and-statistics

43. Sovaldi is, however, more costly than Harvoni overall, because it needs to be taken in combination with other drugs.

44. The letter is available at http://www.finance.senate.gov/imo/media/doc/Wyden-Grassley%20Document%20Request%20to%20Gilead%207-11-141.pdf

45. A. Hill, S. Khoo, J. Fortunak, B. Simmons and N. Ford, ‘Minimum costs for producing hepatitis C direct-acting antivirals for use in large-scale treatment access programs in developing countries’, Clinical Infectious Diseases , 58(7) (2014), pp. 928–36: doi: 10.1093/cid/ciu012

46. M. Mazzucato, ‘High cost of new drugs’, British Medical Journal , 354: i4136 (2016): http://www.bmj.com/cgi/content/full/354/jul2710/i4136

47. D. W. Light and J. R. Lexchin, ‘Pharmaceutical research and development: What do we get for all that money?’, British Medical Journal 345:e4348 (2012): http://dx.doi.org/10.1136/bmj.e4348

48. A. Swanson, ‘Big pharmaceutical companies are spending far more on marketing than research’, Washington Post , 11 February, 2015: http://www.washingtonpost.com/news/wonkblog/wp/2015/02/11/big-pharmaceutical-companies-are-spending-far-more-on-marketing-than-research/

49. Lazonick, ‘Profits without prosperity’.

50. Mazzucato, The Entrepreneurial State.

51. H. Kantarjian and S. V. Rajkumar, ‘Why are cancer drugs so expensive in the United States, and what are the solutions?’, Mayo Clinic Proceedings , April 2015, report that 85 per cent of basic cancer research in the US is funded by the government.

52. J. Sachs, ‘The drug that is bankrupting America’, Huffington Post , 16 February 2015: http://www.huffingtonpost.com/jeffrey-sachs/the-drug-that-is-bankrupt_b_6692340.html

53. V. Roy and L. King, ‘Betting on hepatitis C: How financial speculation in drug development influences access to medicines’, British Medical Journal, 354:i3718 (2016).

54. P. Barrett and R. Langreth, ‘Pharma execs don’t know why anyone is upset by a $94,500 miracle cure’, Bloomberg Businessweek , 3 June 2015: https://www.bloomberg.com/news/articles/2015-06-03/specialty-drug-costs-gilead-s-hepatitis-c-cures-spur-backlash

55. LaMattina’s article on Forbes is available at: http://www.forbes.com/sites/johnlamattina/2014/08/04/politicians-shouldnt-question-drug-costs-but-rather-their-value-lessons-from-soliris-and-sovaldi/

56. R. Zirkelbach, ‘The five essential truths about prescription drug spending’, March 2015, available on PhRMA website at: http://catalyst.phrma.org/the-five-essential-truths-about-prescription-drug-spending

57. See for example Hilner and Smith, ‘Efficacy does not necessarily translate to cost effectiveness’.

58. Peter Bach’s interactive calculator can be accessed at www.drugabacus.org

59. According to the ranking compiled by Forbes for 2014, on average the ten largest pharmaceutical companies enjoy a 19 per cent net profit rate – the highest of all industries included in Forbes’ worldwide analysis. Pfizer leads the group with a remarkable 41 per cent net profit margin. Only large banks, which are well known to enjoy rents because of their size and political influence, earn a profit rate comparable to that of large pharmaceutical companies, while for example the ten largest automobile companies – also one of the most profitable industries in the world – have on average a 6 per cent net profit rate.

60. P. David, ‘Clio and the Economics of QWERTY’, American Economic Review , 75(2), Papers and Proceedings of the Ninety-Seventh Annual Meeting of the American Economic Association (May 1985), pp. 332–7; G. Dosi, ‘Sources, procedures, and microeconomic effects of innovation’, Journal of Economic Literature , vol. 26 (1988), pp. 1120–71.

61. According to its own mission statement, for example, ‘Facebook’s mission is to give people the power to share and make the world more open and connected’ ( investor.fb.com/faq.cfm). Sergey Brin, one of Google’s founders and President of its parent company Alphabet, has often talked about Google as trying to be against evil, and a ‘force for good’. http://www.businessinsider.com.au/best-quotes-google-sergey-brin-2014-7#to-me-this-is-about-preserving-history-and-making-it-available-to-everyone-1

62. K. Kelly, ‘The new socialism: Global collectivist society is coming online’, Wired magazine, 17 June 2009.

63. E. Morozov, ‘Silicon Valley likes to promise “digital socialism” – but it is selling a fairy tale’, the Guardian , 28 February 2015.

64. Variously attributed. Common attribution is to Andrew Lewis, as blue_beetle on MetaFilter 2010, ‘If you’re not paying for it, you’re not the customer; you’re the product being sold’: http://www.metafilter.com/95152/Userdriven-discontent#3256046

65. M. J. Sandel, What Money Can’t Buy: The Moral Limits of Markets (London and New York: Allen Lane and Farrar, Straus and Giroux, 2013).

66. Evgeny Morozov, ‘Don’t believe the hype, the “sharing economy” masks a failing economy’, the Guardian , 28 September 2014: http://www.theguardian.com/commentisfree/2014/sep/28/sharing-economy-internet-hype-benefits-overstated-evgeny-morozov; Evgeny Morozov, ‘Cheap cab ride? You must have missed Uber’s true cost’, the Guardian , 31 January 2016: http://www.theguardian.com/commentisfree/2016/jan/31/cheap-cab-ride-uber-true-cost-google-wealth-taxation

67. Evgeny Morozov, ‘Where Uber and Amazon rule: welcome to the world of the platform’, the Guardian , 7 June 2015: http://www.theguardian.com/technology/2015/jun/07/facebook-uber-amazon-platform-economy

68. https://www.bloomberg.com/news/articles/2017-02-28/in-video-uber-ceo-argues-with-driver-over-falling-fares

69. http://fortune.com/2016/10/20/uber-app-riders/

70. A useful distinction can be made between direct and indirect network effects. When a higher number of participants increases the benefit to each individual member – as in the case of Facebook – the effect is direct. Where, instead, a higher number of members (for example, buyers) increases the convenience of using the platform, not for the members but for another group (for example, the sellers), we talk of indirect network effects.

71. Source: Statista database ( www.statista.com), and http://uk.businessinsider.com/facebook-and-google-winners-of-digital-advertising-2016-6?r=US&IR=T

72. Morozov, ‘Where Uber and Amazon rule’.

73. See note 70 for the distinction between direct and indirect network effects.

74. Mazzucato, The Entrepreneurial State.

75. Foley, ‘Rethinking financial capitalism and the “information” economy’.