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The scarcity of novel antibiotic compounds in a time of increasing resistance rates has begun to ring alarm bells at the highest echelons of government. Large new financial incentives to accelerate antibiotic research and development, such as market entry rewards (MERs), are being considered. However, there is little focus on how to sustain the efficacy of new, promising antibiotics reaching the market. Currently, inappropriate use of antibiotics is commonplace, which has accelerated resistance development. In an attempt to halt this trend, antibiotic stewardship policies are being implemented in many resource-rich settings. Unfortunately, this has not yet had an impact on the amount of antibiotics being prescribed globally. One important hurdle is misalignment of incentives. While governments and health services are incentivized to promote prudent use of this common good, pharmaceutical companies are incentivized to increase volume of sales to maximize profits. This problem must be addressed or else the major efforts going into developing new antibiotics will be in vain. In this paper we outline an approach to realign the incentives of pharmaceutical companies with wider antibiotic conservation efforts by making a staged bonus a component of an MER for antibiotic developers when resistance to their drug remains low over time. This bonus could address the lack of stewardship focus in any innovation-geared incentive.

His research focuses on innovation studies, business strategy, industrial marketing and purchasing, and commercialization of science.

Purpose This paper aims to theorize on the internationalization process model to explain cases of manufacturing reshoring as decisions taken to manage risk when internationalizing. Design/methodology/approach The paper is of a conceptual nature. Building on the logic of the internationalization process model, the authors extend previous work by focusing on firms’ risk perception (determined by commitment, knowledge and uncertainty as key variables) to explain also reshoring decisions. Findings Four propositions were developed, concerning the likelihood of firms to make manufacturing reshoring decisions. The first two propositions deal with the effects of new risk contingencies, and the other two refer specifically to the effects of managerial perceptions of three different typologies of risk, namely, host-country, home-country and reshoring-process specific risk. Originality/value While reshoring has been discussed mainly on the basis of economic arguments, this paper offers an alternative, behavioural view of this phenomenon as a strategic risk-management process. Therefore, it offers initial steps to theorize about reshoring from a risk-management perspective and, in doing so, opens up a number of avenues for future research.

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