Cost-Effectiveness: A Key Step in Technology Transfer

Whenever appropriate, grant applications should include an intervention cost analysis to demonstrate the “real-world” feasibility of interventions that are intended to improve upon the current standard of practice. Collecting cost information in addition to effectiveness (outcome) data leaves open the possibility of conducting a retrospective cost-effectiveness analysis at later date. The goal of the economic analysis is to demonstrate that the proposed intervention is affordable, hence a realistic real-world option, and that it is either more economically efficient than existing alternatives or that its additional costs are justified by its greater effectiveness. If the intervention is shown to be effective, virtually every policy maker who is considering adopting the intervention will want to know how to judge its affordability. The application should describe the specific aims of the economic analyses, relevant background, why the analyses are significant, the qualifications of the research team to carry out the analyses, and how – specifically, and in detail – the economic analyses will be conducted. If done correctly, an economic efficiency analysis can add appreciable value to a grant application. This chapter offers the authors’ considered guidance on the correct way to propose an economic analysis in a grant application.

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