A preventive HIV vaccine offers the best hope for ending the AIDS pandemic. Scientific evidence suggests that an HIV vaccine is possible, and funding for HIV vaccine research and development (R&D) has increased substantially in recent years. The speed of progress toward an HIV vaccine will depend on the management of the effort as well as on its scale, however, and organizational issues have been the subject of vigorous debate.

This paper suggests that demand instruments of international vaccine procurement, instead of being seen primarily as a global management instrument, can usefully induce industrial change and technological innovation through improved technical standards and regulations. The example of Indian vaccines is analyzed, and an industrial evolution schematic is investigated. The findings suggest that some fine tuning can improve the demand side for technological innovation.

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