Professional Documents
Culture Documents
Agricultural
Innovation Systems
AN INVESTMENT SOURCEBOOK
Agricultural
Innovation
Systems
AN INVESTMENT SOURCEBOOK
A G R I C U LT U R E A N D R U R A L D E V E L O P M E N T
Seventy-five percent of the world’s poor live in rural areas and most are involved in agriculture. In the 21st
century, agriculture remains fundamental to economic growth, poverty alleviation, and environmental sus-
tainability. The World Bank’s Agriculture and Rural Development publication series presents recent analyses
of issues that affect the role of agriculture, including livestock, fisheries, and forestry, as a source of economic
development, rural livelihoods, and environmental services. The series is intended for practical application,
and we hope that it will serve to inform public discussion, policy formulation, and development planning.
Titles in this series:
Agribusiness and Innovation Systems in Africa
Agricultural Innovation Systems: An Investment Sourcebook
Agricultural Land Redistribution: Toward Greater Consensus
Agriculture Investment Sourcebook
Bioenergy Development: Issues and Impacts for Poverty and Natural Resource Management
Building Competitiveness in Africa’s Agriculture: A Guide to Value Chain Concepts and Applications
Changing the Face of the Waters: The Promise and Challenge of Sustainable Aquaculture
Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems
Forests Sourcebook: Practical Guidance for Sustaining Forests in Development Cooperation
Gender and Governance in Rural Services: Insights from India, Ghana, and Ethiopia
Gender in Agriculture Sourcebook
The Land Governance Assessment Framework: Identifying and Monitoring Good Practice in the Land Sector
Organization and Performance of Cotton Sectors in Africa: Learning from Reform Experience
Reforming Agricultural Trade for Developing Countries, Volume 1: Key Issues for a Pro-Development Outcome
of the Doha Round
Reforming Agricultural Trade for Developing Countries, Volume 2: Quantifying the Impact of Multilateral
Trade Reform
Rising Global Interest in Farmland: Can It Yield Sustainable and Equitable Benefits?
Shaping the Future of Water for Agriculture: A Sourcebook for Investment in Agricultural Water Management
The Sunken Billions: The Economic Justification for Fisheries Reform
Sustainable Land Management: Challenges, Opportunities, and Trade-Offs
Sustainable Land Management Sourcebook
Sustaining Forests: A Development Strategy
Agricultural
Innovation
Systems
AN INVESTMENT SOURCEBOOK
© 2012 International Bank for Reconstruction and Development / International Development Association or
The World Bank
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S494.5.I5A32213 2012
338.1'6—dc23 2011052338
Acknowledgments xv
Abbreviations xvii
Sourcebook Overview and User Guide 1
Module 2: Agricultural Education and Training to Support Agricultural Innovation Systems 107
Overview 107
Thematic Note 1 Reforming Public Agricultural Education at the Tertiary Level 122
Thematic Note 2 Curriculum Change in Higher Agricultural Education 131
Thematic Note 3 Education and Training for Technician Development 136
Thematic Note 4 Reforming the Management of In-Service Training/Learning 141
Innovative Activity Profile 1 Reforming India’s State Agricultural Universities 145
Innovative Activity Profile 2 Transforming Wageningen Agricultural University 149
Innovative Activity Profile 3 Curriculum Change in Agricultural Universities Strengthens Links in the
Arab Republic of Egypt’s Innovation System 151
Innovative Activity Profile 4 Innovative Training Program for Midcareer Agricultural Extension Staff: The Sasakawa
Africa Fund Education Program 154
Innovative Activity Profile 5 Chiang Mai University Links with Rural Communities to Focus Research on Farming
Problems and Foster Curriculum Change 157
Innovative Activity Profile 6 EARTH University, Costa Rica: A New Kind of Agricultural University 160
Innovative Activity Profile 7 Technical Skills for Export Crop Industries in Uganda and Ethiopia 163
Innovative Activity Profile 8 Agribusiness Training for Secondary School Graduates in Timor-Leste 165
v
Innovative Activity Profile 9 Vocational Training in the Arab Republic of Egypt Combines Technical and Innovation
Skills for Agriculture 169
Module 3: Investment in Extension and Advisory Services as Part of Agricultural Innovation Systems 179
Overview 179
Thematic Note 1 Pluralistic Extension Systems 194
Thematic Note 2 Farming as a Business and the Need for Local (Agri-) Business Development Services 204
Thematic Note 3 Extension-Plus: New Roles for Extension and Advisory Services 213
Thematic Note 4 The Role of Innovation Brokers in Agricultural Innovation Systems 221
Innovative Activity Profile 1 Agrodealer Development in Developing and Emerging Markets 231
Innovative Activity Profile 2 Federating Farmer Field Schools in Networks for Improved Access to Services 236
Innovative Activity Profile 3 INCAGRO: Developing a Market for Agricultural Innovation Services in Peru 240
Innovative Activity Profile 4 Combining Extension Services with Agricultural Credit: The Experience of BASIX India 246
Module 4: Agricultural Research within an Agricultural Innovation System 261
Overview 261
Thematic Note 1 Designing Agricultural Research Linkages within an AIS Framework 277
Thematic Note 2 Building and Strengthening Public-Private Partnerships in Agricultural Research 289
Thematic Note 3 Regional Research in an Agricultural Innovation System Framework: Bringing Order
to Complexity 297
Thematic Note 4 Codesigning Innovations: How Can Research Engage with Multiple Stakeholders? 308
Thematic Note 5 Organizational Change for Learning and Innovation 316
Innovative Activity Profile 1 Redesigning a Livestock Research Institute to Support Livestock Development within
an AIS Approach 326
Innovative Activity Profile 2 An Innovative Approach to Agricultural Technology Development and Transfer in India 331
Innovative Activity Profile 3 The Agricultural Technology Consortium Model in Chile 338
Innovative Activity Profile 4 Linking Research and Development Actors through Learning Alliances 344
Module 5: Incentives and Resources for Innovation Partnerships and Business Development 361
Overview 361
Thematic Note 1 Foundations for Public-Private Partnerships 374
Thematic Note 2 Innovation Funds 381
Thematic Note 3 Accelerating the Development of Agribusiness Enterprises by Using Business Incubators 388
Thematic Note 4 Agricultural Clusters 396
Thematic Note 5 Technology Transfer Offices: Facilitating Intellectual Property Protection for Agricultural
Innovation 406
Thematic Note 6 Risk Capital for Agriculture in Developing and Middle-Income Countries 414
Innovative Activity Profile 1 Developing Entrepreneurs through an Agribusiness Incubator at ICRISAT 421
Innovative Activity Profile 2 The China Technology Transfer Project 426
Innovative Activity Profile 3 Agricultural Cluster Development in Nicaragua 430
Innovative Activity Profile 4 Providing Farmers with Direct Access to Innovation Funds 435
Module 6: Creating an Enabling Environment for Agricultural Innovation 449
Overview 449
Thematic Note 1 National Innovation Policy 460
Thematic Note 2 Governance of Innovation Systems 469
Thematic Note 3 Managing Intellectual Property to Foster Agricultural Development 480
Thematic Note 4 Biosafety Regulatory Systems in the Context of Agricultural Innovation 492
Thematic Note 5 Technical Regulations and Standards 501
Innovative Activity Profile 1 Developing an Enabling Environment to Improve Zambian Smallholders’ Agribusiness
Skills and Commercial Orientation 512
Innovative Activity Profile 2 Intellectual Property Management in Livestock Veterinary Medicines for Developing
Countries 516
Innovative Activity Profile 3 Developing a Subregional Approach to Regulating Agricultural Biotechnology in West Africa 522
Innovative Activity Profile 4 The Supply Response to New Sources of Demand for Financial and Other Services in
Rural Andhra Pradesh 526
vi CONTENTS
Module 7: Assessing, Prioritizing, Monitoring, and Evaluating Agricultural Innovation Systems 539
Overview 539
Thematic Note 1 Assessing Innovation for Prioritizing Investments 546
Thematic Note 2 Methods for Organizational Assessments in Agricultural Innovation Systems 553
Thematic Note 3 Foresighting Investments in Agricultural Innovation 562
Thematic Note 4 Monitoring Agricultural Innovation System Interventions 569
Thematic Note 5 Evaluating Agricultural Innovation System Interventions 580
Innovative Activity Profile 1 Self-Organizing Networks in Policy and Planning: Experience from Sierra Leone’s Partnership
for Agricultural Innovation and Development 589
Innovative Activity Profile 2 Using Net-Map to Assess and Improve Agricultural Innovation Systems 593
Innovative Activity Profile 3 Gender Analysis for the Assessment of Innovation Processes: The Case of Papa Andina in Peru 598
Innovative Activity Profile 4 Scenario Planning to Guide Long-Term Investments in Agricultural Science and Technology
in India 603
Innovative Activity Profile 5 A Vision for Agriculture in Chile in 2030 and the Implications for Its Innovation System 607
Innovative Activity Profile 6 Monitoring and Evaluation in the Fodder Innovation Project 610
Innovative Activity Profile 7 Monitoring and Evaluation in the Research Into Use Program 614
Glossary 629
Authors and Their Affiliations 635
Index 639
BOXES
O.1 Innovation and Innovation Systems Defined 2
O.2 The World’s Need for Agriculture, Agricultural Development, and Innovation 2
O.3 Examples of Agricultural Innovation and Innovation Processes 3
O.4 Trends in Financing Agricultural Science and Knowledge Systems 5
O.5 Recent Reforms in Public Agricultural Research and Extension 6
O.6 The Role of Information and Communications Technology in Knowledge Exchange
and Innovation 8
O.7 Cross-Cutting Themes Addressed in This Sourcebook 12
1.1 Main Terms Used in This Module 16
1.2 Role of Learning Alliances in Enhancing Interaction and Improving Innovation
Capabilities in Central America 17
1.3 Factors Essential to Interaction and Coordination for Agricultural Innovation 19
1.4 Thailand’s National Innovation Agency 23
1.5 Fresh Produce Exporters Association of Kenya: A Sectoral Coordinating Body 24
1.6 Indian National Dairy Development Board 25
1.7 A Traditional Company in a Mature Sector Builds Innovation Capabilities 27
1.8 Actions to Build Organizational Capabilities 27
1.9 Capacities and Skills Needed in Coordination and Governance of Agricultural Innovation 36
1.10 The Rural Research and Development Council of Australia 37
1.11 Structure and Mandate of the Indian Council of Agricultural Research 38
1.12 Mechanisms to Articulate Producers’ Needs in Uruguay 39
1.13 Effects of Competitive Science and Technology Funds on Research Governance 41
1.14 Bioconnect: A Networked Research Council in the Netherlands 43
1.15 The Creation and Consolidation of Papa Andina 45
1.16 Benefits of Local and Foreign Collaboration to Develop Equipment for No-Till Agriculture
in South Asia 47
1.17 The Roles of Individuals and Organizational Culture in the Development of Innovation
Networks: A Mexican Example 49
1.18 Procurement Systems in Modern Marketing Chains in Three Developing Countries 54
1.19 Sourcing Practices Used by Mexican Supermarkets Reveal Experimentation with Contractual
Arrangements and Types of Growers 56
CONTENTS vii
1.20 ICTs Improve the Effectiveness of Farmer Organizations 62
1.21 Successful Financing of Farmer Organizations 63
1.22 Benefits of Innovation Capabilities in a Farmer Organization: The Kenya Tea
Development Agency 64
1.23 Development of No-Till for Ghana’s Small-Scale Farmers 71
1.24 Organizational Learning in Mexico’s Produce Foundations: Evolution of Priority-Setting
Procedures 78
1.25 Mexico’s Produce Foundations Explore New Approaches to Foster Innovation 79
1.26 Mechanisms Used by Chile’s Foundation for Agricultural Innovation to
Support Innovation 81
1.27 Purposeful Innovation to Expand Chile’s Olive Oil Industry 82
1.28 Rising Input Use and Agricultural Debt in Andhra Pradesh 85
1.29 Benefits of Community Organization to Pursue More Sustainable Agricultural Practices
in Andhra Pradesh 87
1.30 Raising Cassava’s Profile among Policy Makers in Panama 92
1.31 Policy Action to Diversify the Market for Cassava in Costa Rica 94
2.1 Gender-Inclusive AET: The Example of African Women in Agricultural
Research and Development 109
2.2 Future Farmers of America: A Unique Young Farmer Organization 110
2.3 Brazil’s National Agricultural Research Program Benefits from Long-Term Investments
in Human Resources 112
2.4 The Need for a Broader Skill Set to Foster Innovation 116
2.5 The Potential of ICT for AET and Its Role in an Innovation System 117
2.6 Reforming Higher Agricultural Education in China, 1990–2000 124
2.7 Main Elements of Investment in Direct and Indirect Curriculum Reform 126
2.8 The Pursuit of Relevance Spurs Reform in Bogor Agricultural University, Indonesia 127
2.9 Key Steps in the Reform of Higher Agricultural Education 130
2.10 Regional Universities Forum for Capacity Building in Agriculture: Fostering Capacity
for Innovation and Adaptation among Students 133
2.11 Producing Technical Human Resources for the Agriculture Sector in Australia 137
2.12 Specific Lessons from the Community-Based Research Approach Adopted by
Chiang Mai University’s Faculty of Agriculture 159
2.13 Seven Steps to Improve Teaching Methods and Introduce Active Learning in
Egypt’s Agricultural Technical Schools 170
2.14 Views on the Impact of the Supervised Student Internship Program in Egypt 171
3.1 Extension and Advisory Services, Defined 180
3.2 Past and Current Investment Levels in Agricultural Advisory Services 181
3.3 Benefits of ICTs for Agricultural Extension and Advisory Services 183
3.4 Agricultural Technology Management Agency in India 184
3.5 Farmer Field Schools for Participatory Group Learning 185
3.6 Mobile Telephony for Delivering Animal Health Services 185
3.7 National Agricultural Advisory Services in Uganda 186
3.8 Ethiopia: Investing in Human Resources 187
3.9 Fee-for-Service Extension: Pros and Cons 188
3.10 Global and Regional Coordination to Strengthen Agricultural Advisory Services 189
3.11 Guide to Extension Evaluation 192
3.12 Pluralism in Action: Government-Funded Public, Nongovernmental, and Privately
Managed Extension Systems in Mozambique 197
3.13 Effects of Local Business Development Services for Farmers in Uganda 205
3.14 Farmer Agribusiness Promoters in Mozambique 206
3.15 Developing Small-Scale Agribusinesses in Uganda: Strategies and Outcomes 206
3.16 KILICAFE, a Local Agribusiness Service Provider in Tanzania 207
3.17 Casas Agrárias in Mozambique: Lessons from One-Stop Agribusiness Centers 208
viii CONTENTS
3.18 The Cheetah Network Integrates Agricultural Education and Business Incubation in Mali 209
3.19 A Successful Business Model for Mozambique’s Farmers to Provide Environmental
Services 210
3.20 Extension-Plus: Examples from the Field 215
3.21 Good Practices and Their Impacts for Kerala’s Fruit and Vegetable Farmers 217
3.22 Experience with Innovative Activity in Kerala Horticulture 219
3.23 The Need for Innovation Brokering: Supplying Potatoes for Processing in Kenya 222
3.24 The Innovation Works Unit at the International Livestock Research Institute as an
Innovation Broker 223
3.25 Agricultural Innovation Broker Initiatives in India 224
3.26 Philosophy on Agricultural Development Drives the Approach in Agrodealer Development 232
3.27 Technical Knowledge Transfer: A Public-Private Approach in Bangladesh 233
3.28 Business Linkage Development and Leveraging Resources 234
3.29 Agrodealer Associations Support Common Interests 234
3.30 Diffusion of Fertilizer Deep Placement Technology in Bangladesh 235
3.31 Gender Issues in FFSs 237
3.32 A Kenyan Federation of Field Schools Benefits from Government Programs 238
3.33 Sources of Support for the Innovation and Competitiveness Program for Peruvian
Agriculture (INCAGRO) 240
3.34 An Ally Broadens Farmers’ Skills to Articulate and Meet Their Demand
for Innovation Services 242
3.35 Using Competitive Grants to Fund Multiple, Synergistic Innovation Services
for a New Oilseed Crop in Peru 243
3.36 BASIX Services for Groundnut Farmers in Andhra Pradesh: From Financial
Services to Livelihood Triad Services 248
3.37 AGLED Services for Mushroom Cultivation 248
3.38 Contract Farming for Potato: The Need for Strong Farmer Organizations 249
4.1 Financing Agricultural Research and Innovation 271
4.2 ICTs Make Agricultural Research More Inclusive 272
4.3 The Consultative Group on International Agricultural Research and the AIS 274
4.4 Examples of Public-Private Engagement in Prebreeding and Genomics 274
4.5 The Three Innovation Contexts 278
4.6 Research-Extension-Linkage Committees in Ghana: Experience and Lessons 280
4.7 Lessons from Senegal’s Agricultural Services and Producer Organizations Project 281
4.8 Design of the Australian National Agricultural Innovation System 284
4.9 Technology Transfer Pathways 285
4.10 Public-Private Partnerships and the Changing Roles of Public and Private Agents
in Agricultural Research 290
4.11 Public-Private Partnership for Participatory Research in Potato Production in Ecuador 291
4.12 Public-Private Partnership for Processing Cashew Nuts in Northern Brazil 292
4.13 Public-Private Partnership for Research on New Wheat Varieties in Argentina 292
4.14 Indicators for Evaluating Public-Private Partnerships in Agricultural Research 294
4.15 Subregional Organizations in Latin America: Strong National Capacity, Commitment
to Research, and Alignment with an Emerging Regional Economic Community
as Drivers of Success 298
4.16 Creating Sustainable Scientific Hubs: An Example of the Biosciences in Eastern
and Central Africa 299
4.17 RUFORUM’s Choice: Regional Center of Excellence, Continentwide Forum, or Both? 301
4.18 Subregional Organizations in Sub-Saharan Africa: Challenges with Secure Funding
and Collective Action 306
4.19 Costs and Investments Associated with Codesign 310
4.20 Applying Codesign for Conservation Agriculture in Central Mexico 312
4.21 Features of Papa Andina’s Partnership Programs 313
CONTENTS ix
4.22 Strengthening Capacity in Tanzania through a Client-Oriented Approach
to Managing Research and Development 318
4.23 Principles of Accountability 319
4.24 Promoting Agricultural Innovation through a Competitive Funding Scheme in Peru 320
4.25 Organizational and Institutional Changes through a National Innovation Project in India 323
4.26 Building Capacity in Livestock Innovation Systems: Early Results from the International
Livestock Research Institute and Partners 327
4.27 Lessons and Operational Issues from the Fodder Innovation Project 329
4.28 Issues and Experience of Partners in Consortiums Funded by the National Agricultural
Innovation Project 334
4.29 Achievements by the Bioethanol and Banana Pseudostem Consortiums Funded under
the National Agricultural Innovation Project, India 334
4.30 Preliminary Results of the National Agricultural Innovation Project, India 335
4.31 Characteristics and Conditions for Business-Technology Consortiums to Receive Public
Financing 339
4.32 A Vine-and-Wine Consortium: Vinnova Merges with Tecnovid in Chile 342
4.33 A Business-Technology Consortium for Potato 342
4.34 Advantages and Impacts of Learning Alliances 345
4.35 How Learning Alliances Change the Work of Development Agencies: The Example
of Catholic Relief Services 348
5.1 Research and Development Tax Incentive Law in Chile 365
5.2 Main Aspects of Developing and Implementing Demand-Driven, Sustainable Business
Development Services 367
5.3 Critical Choices for Public-Private Partnerships 369
5.4 Different Trajectories of Agricultural Growth and Producer-Consumer Welfare Distribution 370
5.5 Consumers Want to Be Engaged 371
5.6 Additionality Criteria to Use in Deciding Whether to Provide Public Funding 372
5.7 A Public-Private Partnership to Implement Labor Standards in Asia 375
5.8 A Public-Private Partnership to Conserve Genetic Resources in China 377
5.9 The Importance of Policy-Level Monitoring, Evaluation, and Analysis 380
5.10 Getting the Most from Matching Grant Schemes: The Turkey Technology
Development Project 384
5.11 Colombia Productive Partnerships Project: Incentivizing Market Inclusion through
Matching Grants 385
5.12 Lessons from Competitive Grant Programs in Latin America 386
5.13 Recommended Options for Grant Program Secretariats 387
5.14 Services That Incubators Can Provide 388
5.15 Key Features of Revenue Models for Business Incubators 390
5.16 Typical Numbers of Incubator Staff and Tenants 391
5.17 The Government of India’s Incentives to Support Business Incubators 392
5.18 The Tianjin Women’s Business Incubator 392
5.19 The Agri-Business Incubator@ICRISAT 393
5.20 The Rutgers Food Innovation Center 393
5.21 Real Estate and Management Arrangements Associated with Parquesoft Centers, Colombia 395
5.22 The Wine Cluster in South Africa: Outcomes and Success Factors 401
5.23 Environmental Challenges for Cluster Development: Examples from Kenya and Tanzania 401
5.24 Public-Private Partnership Supports Cluster Development in Uganda’s Fish-Processing Industry 404
5.25 A Joint Action Project in Paraguay Improves Competitiveness of a Sesame Value Chain
through the Cluster Approach 405
5.26 Intellectual Property Management at Tsinghua University, China 409
5.27 From University to Industry: Technology Transfer at Unicamp in Brazil 411
5.28 Key Issues to Be Addressed by an Institution’s Intellectual Property Policy 413
5.29 African Agriculture Fund 417
x CONTENTS
5.30 Aakruthi Agricultural Associates: An Incubator Graduate 423
5.31 Agri-Biotech Incubation with Bioseed Research India 424
5.32 Complementary Cluster Development Activities Reinforced the UNIDO Project 431
5.33 The Livestock Cluster in Chontales 432
5.34 The Banana Cluster in Rivas 433
5.35 Innovation Themes Explored in the Local Innovation Support Funds and Competitive
Grant Programs 437
5.36 An Example of a Competitive Grant Program Grant: Improved Onion Storage and
Marketing in Albania 438
5.37 An Example of a Local Innovation Support Fund Grant: Propagating Podocarpus
in Ethiopia 438
5.38 Dynamics of the Local Innovation Support Fund Setup in Cambodia, 2006–10 440
6.1 Plant Variety Rights Legislation in Africa 453
6.2 Economic Impact of Rural Roads in Bangladesh 455
6.3 Chile’s Innovation Strategy 461
6.4 Developing an Innovation Policy 462
6.5 The Creation of Sectoral Science, Technology, and Innovation Funds in Brazil 463
6.6 Unleashing Argentina’s Productive Innovation 465
6.7 A Functional Analysis of a National or Sectoral Innovation System 466
6.8 Benchmarking National Innovation Systems and Policies 467
6.9 Finland Responds to the Challenges of Globalization 472
6.10 Korea Responds to the Asian Crisis of the Late 1990s 473
6.11 A White Paper and Foresight Exercises Facilitate Changes in South Africa’s Innovation Policy 473
6.12 Organizations Involved in Prioritizing and Coordinating Policy in Finland, Korea,
and South Africa 474
6.13 Tekes as an Implementer of Innovation Policies in Finland 475
6.14 Strategic Intelligence Capabilities and Activities in Finland, Korea, and South Africa 476
6.15 Beyond TRIPS 481
6.16 IPR Issues in Genetic Resources 481
6.17 BOTEC Harnesses Innovation in Botswana 483
6.18 Patenting a Chilean Invention to Protect Crops from Frost 484
6.19 Colombian Coffee: Trademarks and Geographical Indicators Protect a Valued Brand 485
6.20 Hagar Soya Co., Cambodia: Multiple Benefits from an Innovative Social Business Model 486
6.21 Country and Donor Investments in Intellectual Property Training for Professionals 490
6.22 Building Human Resource Capacity for Biosafety Risk Assessment 493
6.23 Who Benefits from Agricultural Biotechnology? 494
6.24 The Development of Genetically Engineered Food Safety Assessment Guidelines in India 495
6.25 Advancing Agricultural Biotechnology in Uganda: It Takes More Than Good Science 496
6.26 Interministerial Coordination in the Biosafety Regulatory System of Bangladesh 498
6.27 Adaptability in Biosafety Regulation: The Gene Technology Act in Australia 499
6.28 The Approval of Bt Cotton in Burkina Faso 500
6.29 Practical Regulation of Genetically Engineered Foods in Vietnam 500
6.30 International Framework for Setting Quality and Sanitary/Phytosanitary Standards 502
6.31 Standards Induce Innovation throughout the Agriculture Sector 503
6.32 Institutional Arrangements for Improving Systems for SPS and Quality Standards 505
6.33 Actions and Investments for Uganda’s Fish Export Industry to Comply with Standards
and Technical Regulations 506
6.34 Innovating to Quickly Respond to Adverse Trade Events 509
6.35 Tailoring Intellectual Property Strategies for Public and Private Partners in Technology
Deployment 517
6.36 Internal Capacity Building for Strategic Intellectual Property Management 518
7.1 Main Terms Used in This Module 540
7.2 Questions for Assessing the Theory of Change in Innovation Systems 547
CONTENTS xi
7.3 The Local Economic and Employment Development Project 551
7.4 Questions That Illustrate the Range of Objectives in an Organizational Assessment 555
7.5 Elements of the Organizational Performance Assessment 557
7.6 Sample Question Set for Assessing Human Resource Management Performance 558
7.7 Organizational Learning and Institutional Change 559
7.8 Using Staff Surveys in Assessing Agricultural Extension Services in Six Districts of Ghana 560
7.9 Foresighting to Transform Ireland’s Agrifood Sector (Teagasc 2030) 563
7.10 Foresighting for Jamaica’s Sugar Industry 564
7.11 Rapid Appraisal of Agricultural Knowledge Systems 571
7.12 Outcome Mapping 572
7.13 Most Significant Change: A Form of Participatory Monitoring and Evaluation 576
7.14 Innovation and Institutional Histories 577
7.15 Developing Institutional Change Indicators 578
7.16 Limitations of Traditional Methods for Evaluating Innovation System Interventions
in Agriculture 582
7.17 Challenges of Developing Counterfactuals 583
7.18 Propensity Score Matching 583
7.19 Theory-Based Impact Evaluation 584
7.20 Net-Mapping a Poultry Innovation System in Ethiopia 596
7.21 Net-Mapping to Reduce the Risk of Avian Influenza in Ghana 596
7.22 New Market Niches and Value Addition for Small-Scale Growers of Native Potatoes
in the Andes 598
7.23 Innovation Fairs to Assess and Recognize Women’s Contributions to Market Chains and the
Agricultural Innovation System 601
7.24 Key Issues Raised by “Remarkable People”—Including Opinion Leaders and Policy Makers—in
the Scenario Development Process, India 606
7.25 The Vision for Chilean Agriculture in 2030 608
7.26 Summary of Action Plan Recommendations in Six Thematic Areas 609
7.27 Key Elements of the Framework Used to Evaluate Research Into Use 616
7.28 Framework for Tracking Institutional Change 617
7.29 Rationale and Approach for Innovation Studies Based on Institutional Histories of Africa
Country Programmes 618
FIGURES
O.1 An Agricultural Innovation System 4
1.1 The Institutional Model for Federated Self-Help Groups 86
1.2 The Same Institutional Platform Provides Services to Develop Multiple
Livelihood Strategies 87
3.1 Roles of Local Agribusiness Development Services in Relation to Actors
in the Agricultural Product Chain and to Support Services 205
5.1 Financing Gap for Small Enterprises 394
5.2 Institutions with Crucial Roles in Agricultural Clusters 398
5.3 Typical Financing Stages for Company Growth 415
5.4 Framework for Business Incubation in ABI 422
6.1 Policy Spheres Shaping the Environment for Agricultural Innovation 450
6.2 Typical Governance Structure of a National Innovation System 472
6.3 Self-Help Groups Constitute a Rural Institutional Platform That Enables the Rural Poor
to Acquire the Capacities, Services, Market Access, and Social Safety Nets That Pave the
Way for Innovation 527
7.1 Conceptual Diagram of a National Agricultural Innovation System 554
B7.5 Diagram of Organizational Performance Assessment 557
7.3 Final Scenario Plots Developed during the Scenario Design and Consultation Processes 605
7.4 Scenarios for Chile’s Agricultural Innovation System 609
xii CONTENTS
TABLES
O.1 Defining Features of the Three Main Frameworks Used to Promote and Invest
in Knowledge in the Agriculture Sector 6
O.2 Sourcebook Modules 9
1.1 Examples of Coordinating Bodies, Potential Participants, and the Levels at Which They Operate 22
1.2 Indicators of Organizational Innovation 33
1.3 Client Orientation and Participation in Science and Technology Funds That
Are Competitive and Specific to Agriculture in Select Latin American Countries 42
1.4 Factors That Influenced the Performance of Four Successful No-Till Networks 72
1.5 Use of No-Till in Select Countries, 2007–08 73
2.1 Current and Potential Future Directions of AET Systems 114
2.2 Measuring the Progress of AET Reforms 120
3.1 Approaches for Developing Effective Extension and Advisory Services 185
3.2 Options for Providing and Financing Pluralistic Agricultural Advisory Services 190
3.3 Extension Service Functions and Service Provider Categories 196
3.4 Investment Opportunities to Foster Pluralistic Extension Systems 199
3.5 Shifting Extension to Extension-Plus 214
3.6 Investments Needed under an Extension-Plus Scenario 215
3.7 Indicators That May Be Useful for Monitoring and Evaluating an Extension-Plus Approach 217
3.8 Activities to Ensure Successful Operation of an Extension-Plus Approach 220
3.9 Typology of Innovation Brokers 225
B3.30 Impacts of Addressing Supply and Demand Issues Concurrently in Diffusing
a New Fertilizer Technology 235
3.10 Measures of INCAGRO Project Output 244
3.11 Services Included in the BASIX Livelihood Triad 247
4.1 Schematic of a Monitoring and Evaluation Framework for Assessing the Performance
of Agricultural Research within an AIS 276
4.2 Approaches to Strengthening the Articulation of Demand and Interfaces with
the Agricultural Research System in Agriculture-Based, Transforming, and Mature
Innovation Contexts 279
4.3 Types of Research Subject to Public-Private Partnerships 290
4.4 Six Criteria for Assessing Prospective Regional Research Initiatives for Their
Contributions to Regional and National Innovation 304
4.5 Key Approaches or Brands Fitting under the Codesign Umbrella 309
4.6 Examples of Problems, Corresponding Potential Innovations, and Key Potential
Components of a Codesign Approach Adapted to Address Those Problems 310
4.7 Priorities for Investment to Support Organizational Change 317
4.8 Consortium Leaders and Partner Institutions in the National Agricultural Innovation
Project, India 333
B4.34 Types of Learning Alliances 345
4.9 Key Principles for an Effective Multipartner Learning Alliance 346
5.1 Business Development Instruments Used in Nonagricultural Sectors
(and Later Adapted to Agriculture) 364
5.2 Objectives, Instruments, and Financial Support Mechanisms for Business Development
and Partnerships 365
5.3 Possible Monitoring and Evaluation Indicators 373
5.4 Comparison of Competitive Research Grants (CRGs), Matching Grants (MGs),
and Core (Block) Funding 382
5.5 A Generalized Governance and Management Structure for Grant Schemes 384
5.6 Business Incubator Typology and Overview 389
5.7 The Four Main Technology Transfer Office (TTO) Business Models 407
5.8 Generalized Intellectual Property (IP) Training Needs of Different Groups of Staff
in a Technology Transfer Office (TTO) 408
CONTENTS xiii
5.9 The Gap in Access to Enterprise Finance in Africa 415
5.10 Representative Agricultural Investment Funds 417
5.11 Challenges Faced by Agri-Business Incubator Since Its Inception and Solutions 425
5.12 Key Characteristics of Farmer Innovation Fund Grants Made in Several Countries, 2005–10 437
6.1 Enabling Environment Factors and Indicators 458
6.2 Examples of Standards and Technical Regulations Applied to Agriculture and Agrifood Products 503
6.3 Organizational Functions Related to Sanitary and Phytosanitary (SPS) and Quality Standards 505
6.4 Strategic Choices and Responses with Respect to SPS and Quality Standards 509
7.1 Conventional Agricultural Policy Making and Planning Tools 542
7.2 Decision Making and Management Processes and Tools at Different Levels of an Agricultural
Innovation System 544
7.3 Roles of Ex Ante and Ex Post Assessments 547
7.4 Ten Functions of Innovation Systems and Related Data Sources 548
7.5 Guidelines for Benchmarks and Indicators for Innovation Systems 549
7.6 Examples of Classic Indicators for Policy and Program Investments Compared with Indicators
for AIS Policy and Program Investments 550
7.7 Foresight Tools 566
7.8 Overview of Methods for Monitoring AIS Interventions 573
7.9 Evaluation Approaches Relevant to Innovation System Interventions 586
7.10 Phases of the Participatory Market Chain Approach and Gender Assessment and Related
Activities in Each Phase 600
7.11 Timing for Preparing the National Agricultural Innovation Project (NAIP) in Relation to
Scenario Development 604
7.12 Partial Results of an Externally and Internally Generated Scoreboard for Monitoring and
Learning in the Fodder Innovation Project 613
xiv CONTENTS
AC K N OW L E D G M E N T S
Agricultural Innovation Systems: An Investment Sourcebook Willem Janssen (LCSAR), Gunnar Larson (ARD), Andrea
was made possible by a number of key individuals, donors, Pape-Christiansen (ARD), Riikka Rajalahti (ARD), Florian
and partner organizations. The AIS Sourcebook was part Theus (WBI), Ariani Wartenberg (LCSAR), Melissa Williams
of the Finland / infoDev / Nokia program “Creating sus- (SASDA), and Douglas Zhihua Zeng (AFTFE).
tainable businesses for the knowledge economy,” whose Contributors of material for module Overviews, Thematic
contributions together with World Bank funding served as Notes, or Innovative Activity Profiles outside the Bank
a foundation for the production of the Sourcebook. included Nuria Ackermann (UNIDO), John Allgood (IFDC),
Financing was also provided through a grant from the S. Aravazhi (ICRISAT), Peter Ballantyne (ILRI), Alan
Gender Trust Fund and many in-kind contributions from B. Bennett (PIPRA, University of California, Davis), Rupert
the following institutions: CATIE, CIAT, CRS, BASIX, FAO, Best (CRS), Regina Birner (University of Hohenheim, for-
ICRISAT, IFDC, KIT, LINK Ltd, PIPRA, Prolinnova, Uni- merly IFPRI), Sara Boettiger (PIPRA, University of Califor-
versity of Guelph, University of Hohenheim, UNIDO, and nia, Berkeley), Arnoud R. Braun (Famer Field School Foun-
USAID. The overall task was managed and coordinated by dation Wageningen University), Alistair Brett (Consultant),
Riikka Rajalahti and Andrea Pape-Christiansen (World Judy Chambers (IFPRI), Anthony Clayton (University of the
Bank). They collectively assume responsibility for remain- West Indies), Kristin Davis (IFPRI and GFRAS), Kumuda
ing errors and omissions. Dorai (LINK Ltd), Deborah Duveskog (Consultant), Javier
The preparation of this Sourcebook involved many indi- Ekboir (ILAC), Howard Elliott (Consultant), Wyn Ellis
viduals within several units of the World Bank and a variety (Consultant), Josef Ernstberger (Consultant), Josef Geoola
of partner organizations. As module coordinators the fol- (GALVmed), Peter Gildemacher (KIT), María Verónica Got-
lowing individuals played a key role in the preparation of tret (CATIE), Andy Hall (LINK Ltd., Open University),
the individual modules: Javier Ekboir and Riikka Rajalahti Helen Hambly Odame (University of Guelph), Frank
(module 1); Charles Maguire (module 2); Kristin Davis and Hartwich (UNIDO), Willem Heemskerk (KIT), Douglas
Willem Heemskerk (module 3); John Lynam (module 4); Horton (Consultant), Steen Joffee (Innodev), Trish Kam-
Josef Ernstberger (module 5); Han Roseboom (module 6); mili (INRA), S.M. Karuppanchetty (ICRISAT), Godrick
and Helen Hambly Odame, Andy Hall, and Kumuda Dorai Khisa (Wageningen University Farmer Field School Foun-
(module 7). dation), Laurens Klerkx (Wageningen University), Stanley
We are grateful to the more than 70 individuals who made Kowalski (University of New Hampshire), Patti Kristjanson
written contributions to module Overviews, Thematic (CIFOR), Anton Krone (SaveAct, Prolinnova), Ninatubu
Notes, or Innovative Activity Profiles. Contributors within Lema (NARS Tanzania), Tarmo Lemola (ADVANSIS Ltd.),
the Bank included Seth Ayers (WBI, formerly infoDev), David Lugg (FAO), Mark Lundy (CIAT), John Lynam (Con-
Marie-Hélène Collion (LCSAR), Luz Diaz Rios (ARD), sultant), Charles J. Maguire (Consultant), Vijay Mahajan
Michelle Friedman (LCSAR), Indira Ekanayake (AFTAR), (BASIX), Morven McLean (ILSI), Mohinder S. Mudahar
xv
(Consultant), Bernardo Ospina Patiño (CLAYUCA), Andy Hall (LINK Ltd.), Willem Heemskerk (KIT), Doug
Christopher Palmberg (ADVANSIS Ltd.—now at Tekes), Horton (Consultant), Steven Jaffee (Innodev), Willem Janssen
Robert Potter (Consultant), John Preissing (FAO), Ranjitha (World Bank), Nancy Johnson (ILRI), Trish Kammili (INRA),
Puskur (ILRI), Catherine Ragasa (IFPRI), Johannes Roseboom Manuel Lantin (CGIAR), Esparanza Lasagabaster (World
(Consultant), Silvia Sarapura (University of Guelph), Eva Bank), Tarmo Lemola (Advansis Ltd.), John Lynam (Consul-
Schiffer (Consultant), Kiran K. Sharma (ICRISAT), David tant), Charles Maguire (Consultant), Calvin Miller (FAO),
J. Spielman (IFPRI), Rasheed Sulaiman V (CRISP), Bernard Dr. Mruthyunjaya (ICAR), Remco Mur (KIT), Gordon Myers
Triomphe (CIRAD), Klaus Urban (FAO), K. Vasumathi (IFC), Ajai Nair (World Bank), David Nielson (World Bank),
(BASIX), Rodrigo Vega Alarcón (Consultant, formerly FIA), Eija Pehu (World Bank), John Preissing (FAO), Ranjitha
Laurens van Veldhuizen (ETC Foundation), Ann Waters-Bayer Puskur (ILRI), Luz Berania Diaz Rios (World Bank), William
(ETC Foundation), and Mariana Wongtschowski (KIT). M. Rivera (Consultant), Bill Saint (Consultant), Iain Shuker
The Sourcebook was reviewed and refined by a large (World Bank), Amy Stilwell (World Bank), Burt Swanson
number of reviewers, whose work is gratefully acknowl- (University of Illinois), Jee-Peng Tan (World Bank), Jonathan
edged. The team appreciates the substantive comments, and Wadsworth (CGIAR, formerly DFID), and Johannes Woelcke
suggestions from the following peer reviewers, including (World Bank).
Adolfo Brizzi, Willem Janssen, and Alfred Watkins (World The Sourcebook team would like to acknowledge
Bank); Manuel Lantin and Jonathan Wadsworth (CGIAR); Juergen Voegele and Mark Cackler (World Bank) for their
Dr. Mruthyunjaya (ICAR); Tom Mwangi Anyonge, Maria guidance and support to the Sourcebook throughout its
Hartl, Shantanu Mathur, and Vineet Raswant (IFAD); Marco preparation.
Ferroni and Yuan Zhou (Syngenta Foundation). Technical editing and final editing were done by Kelly
In addition to the peer review, several people provided an Cassaday (Consultant). Production of the Sourcebook was
overall review of the concept note and module drafts: Gary handled by Patricia Katayama, Aziz Gokdemir, and Nora
Alex (USAID), Jock Anderson (Consultant), Regina Birner Ridolfi (EXTOP). The Sourcebook team would also like to
(University of Hohenheim), Andreas Blom (World Bank), acknowledge the production assistance of Kaisa Antikainen,
Derek Byerlee (Consultant), Montague Demment (University Fionna Douglas, Anthony Stilwell, and Sarian Akibo-Betts
of California, Davis, APLU), Grahame Dixie (World Bank), (ARD), as well as Felicitas Doroteo-Gomez (ARD), who
Kumuda Dorai (LINK Ltd.), Fionna Douglas (World Bank), provided administrative assistance.
xvi ACKNOWLEDGMENTS
A B B R E V I AT I O N S
xvii
COFUPRO Coordinadora Nacional de las Fundaciones Produce (National Coordinating Agency of
Produce Foundations), Mexico
CORAF Conseil Ouest et Centre Africain pour la Recherche et le Développement Agricoles
CSO civil society organization
DHRUVA Dharampur Uththan Vahini (Vanguard of Awakening in Dharampur) (Gujarat)
DIPP Disease Intellectual Property Plan
EARTH Escuela de Agricultura de la Región Tropical Húmeda (EARTH University),
Costa Rica
ECOWAS Economic Community of West African States
EMBRAPA Empresa Brasileira de Pesquisa Agropecuária (Brazilian Agricultural Research Corporation)
EU European Union
F2F Farmer to farmer
FAO Food and Agriculture Organization of the United Nations
FBO farmer-based organization
FFS Farmer Field School
FIA Fundación para la Innovación Agraria (Foundation for Agricultural Innovation), Chile
FIC Fondo de Innovación para la Competitivad (Innovation Fund for Competitiveness), Chile
FIF Farmer Innovation Fund
FOB free on board
FPEAK Fresh Produce Exporters Association of Kenya
GAP good agricultural practice
GDP gross domestic product
GE genetically engineered
GFRAS Global Forum for Rural Advisory Services
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German International Cooperation
Agency)
GLOBALG.A.P. Global Good Agricultural Practices
GM genetically modified
GMO genetically modified organism
GPSG gobal positioning systems
HACCP Hazard Analysis and Critical Control Point
HRD human resource development
HRM human resource management
IAP innovative activity profile
ICAR Indian Council of Agricultural Research
ICI Imperial Chemical Company
ICRISAT International Crops Research Institute for the Semi-Arid Tropics
ICT information and communication technology
IDRC International Development Research Centre
IFAD International Fund for Agricultural Development
IFDC International Fertilizer Development Center
IFPRI International Food Policy Research Institute
IIRR International Institute of Rural Reconstruction
ILAC Institutional Learning and Change Initiative (CGIAR)
ILO International Labour Organisation
ILRI International Livestock Research Institute
INCAGRO Innovación y Competitividad para el Agro Peruano (Innovation and Competitiveness Program for
Peruvian Agriculture)
INSAH Institut du Sahel (Sahel Institute)
xviii ABBREVIATIONS
IP intellectual property
IPO initial public offering
IPR intellectual property right(s)
IRR internal rate of return
ISNAR International Service for National Agricultural Research
ISO International Organization of Standardization
IT information technology
KfW Kreditanstalt für Wiederaufbau (KfW Development Bank, Germany)
KHDP Kerala Horticultural Development Programme
KIT Koninklijk Instituut voor de Tropen (Royal Tropical Institute), the Netherlands
KTDA Kenya Tea Development Agency
LBDSs Local business development services
LCSAR Latin America and Caribbean Region, Agriculture and Rural Development (World Bank)
LISFs Local Innovation Support Funds
LSA livelihood services adviser
LSP livelihood services provider
M&E monitoring and evaluation
MOFA Ministry of Food and Agriculture, Ghana
MUCIA Midwest Universities Consortium for International Activities
NAADS National Agricultural Advisory Services, Uganda
NAIP National Agricultural Innovation Project, India
NARI national agricultural research institute
NARS national agricultural research system
NDDB National Dairy Development Board, India
NGO nongovernmental organization
NIA National Innovation Agency, Thailand
NIS national innovation system
OECD Organisation for Economic Co-operation and Development
OIE Office International des Epizooties (World Organisation for Animal Health)
PASAOP Programme d’Appui aux Services Agricoles et aux Organisations Paysannes
(Agricultural Services and Farmer Organization Support Program), Mali
PIPRA Public Intellectual Property Resource for Agriculture, University of California, Davis
PPP public-private partnership
PRONEA Programa Nacional de Extensão Agrária (National Agricultural Extension Program), Mozambique
PVP plant variety protection
PVR plant variety rights
R&D research and development
RAS rural advisory services
RD&D research, development, and deployment
RUFORUM Regional Universities Forum for Capacity Building in Agriculture
SACCO Savings and Credit Cooperative
SAFE Sasakawa Africa Fund for Extension Education
SAU State Agricultural University, India
SDC Swiss Agency for Development and Cooperation
SERP Society for the Elimination of Rural Poverty
SHG self-help group
SMART specific, measurable, attainable, realistic, and timely
SMEs small and medium enterprises
ABBREVIATIONS xix
SNIC Sistema Nacional de Innovación para la Competitivad (National System of
Innovation for Competitiveness), Chile
SOCAD State Office for Comprehensive Agricultural Development, China
SPS sanitary and phyosanitary
SSA Sasakawa Africa Association
SSTAB Short-Term Technical Assistance in Biotechnology
STI Science, Technology, and Innovation; Office of Science, Technology, and Innovation, Thailand
T&V Training and Visit
TBT Agreement on Technical Barriers to Trade
Tekes Teknologian ja innovaatioiden kehittämiskeskus (Finnish Funding Agency for
Technology and Innovation)
TIA Technology Innovation Agency, South Africa
TN thematic note
TRF Thailand Research Fund
TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights
TTO Technology Transfer Office
TVET technical–vocational education and training
UCC University of Cape Coast (Ghana)
UNESCO United Nations Educational, Scientific, and Cultural Organization
UNIDO United Nations Industrial Development Organization
UNU United Nations University
UPOV Union Internationale pour la Protection des Obtentions Végétales (International Union
for the Protection of New Varieties of Plants)
VET vocational education and training
VFPCK Vegetable and Fruit Promotion Council, Kerala
VO village organization
WAEMU West African Economic and Monetary Union
WECARD West and Central African Council for Agricultural Research and Development
WHO World Health Organization
WIPO World Intellectual Property Organization
WTO World Trade Organization
xx ABBREVIATIONS
Sourcebook Overview and User Guide
Riikka Rajalahti, World Bank
ORIGINS AND PURPOSE OF THIS SOURCEBOOK The sourcebook is targeted to the key operational staff in
international and regional development agencies and
onsensus is developing about what is meant by
Box O.2 The World’s Need for Agriculture, Agricultural Development, and Innovation
In one way or another, agriculture is integral to the poor households, agricultural development not only is a
physical and economic survival of every human being. defense against hunger but also can raise incomes nearly
The United Nations forecasts that the global population four times more effectively than growth in any other sec-
will reach more than 9 billion by 2050. To feed everyone, tor. These circumstances help to explain why agricul-
food production will have to increase 70 percent. Help- tural development is such a powerful tool for reducing
ing the world’s farmers and fishers to achieve this target global poverty and eliciting economic development.
is challenging in itself, but beyond providing food, Agricultural development demands and depends on
agriculture sustains the economies of most countries in innovation and innovation systems. Innovation is widely
significant ways, especially in the developing world. recognized as a major source of improved productivity,
Across Sub-Saharan Africa, for example, agriculture competitiveness, and economic growth throughout
accounts for three-quarters of employment and one- advanced and emerging economies. Innovation also plays
third of GDP; 75 percent of the world’s poor live in rural an important role in creating jobs, generating income,
areas and have an economic link to agriculture. For very alleviating poverty, and driving social development.
the food price index could impoverish 10 million more peo- civil society) have also been altering agriculture’s social and
ple. Food prices are expected to remain volatile for the fore- economic landscape over the past few decades (World Bank
seeable future. 2007b). Agriculture increasingly occurs in a context where
Other changes emerge more gradually, but are no less private entrepreneurs coordinate extensive value chains
significant. Agriculture is more vulnerable to the increasing linking producers to consumers, sometimes across vast dis-
effects of climate change than any other economic sector, tances. A growing number of entrepreneurial smallholders
and it uses almost 80 percent of the world’s freshwater—a are organizing to enter these value chains, but others strug-
vanishing resource in some parts of the world. A changing, gle with the economic marginalization that comes from
less predictable, and more variable environment makes it being excluded from such opportunities.
imperative for the world’s farmers and fishers to adapt and In this context, markets, urbanization, globalization, and
experiment. They require more knowledge that contributes a changing environment not only influence patterns of con-
to sustainable, “green” growth—as well as a greater capacity sumption, competition, and trade but also drive agricultural
to help develop such knowledge. development and innovation far more than before. More
Like climatic variability, globalizing markets for agricul- providers of knowledge are on the scene, particularly from
tural products, far-reaching developments in technology, the private sector and civil society, and they interact in new
and equally transformative evolution in institutions ways to generate ideas or develop responses to changing
(including new roles for the state, the private sector, and agricultural conditions (World Bank 2006).
The instances of agricultural innovation listed here tional agricultural research organizations, universi-
came about in different ways. In some cases, markets ties, and development foundations; complex but
heightened the pressure to innovate, and the private creative institutional arrangements over ownership;
sector played a decisive role in driving the subsequent innovation targeted to poor (nutrient-deficient)
innovation. In others, public sector interventions, such users.
as policy, R&D, and other incentives, drove the innova- ■ Potato, Peru. Facilitation by an international
tion process. research center of the development of new indige-
nous potato products with a coalition of researchers,
■ Cassava-processing innovation system, Ghana. smallholders, and multiple private actors (including
Research-led development and promotion of new supermarkets, traders, and restaurants).
cassava products with a private sector coalition.
■ Cut flower innovation system, Colombia. Continuous In each case, the drivers of innovation and growth
innovation in response to changing markets, using were different and the role of research and extension var-
licensed foreign technology and coordinated by an ied, but in all cases the actors used similar approaches to
industry association. address their challenges and innovate. The challenges
■ Medicinal plants innovation system, India. Mobiliza- included meeting stringent quality standards, remaining
tion of traditional and scientific knowledge for rural competitive, responding to changing consumer tastes,
communities, coordinated by a foundation. and addressing technological problems.
■ Small-scale irrigation innovation system, Bangladesh. The actors’ ability to improve their interactions and
Promotion by a civil society organization of a strengthen their links to one another proved crucial to
low-cost pump to create markets; innovation by their success. All of the cases illustrate the importance
small-scale manufacturers with the design of pumps of taking collective action, having the benefit of facili-
in response to local needs. tation and coordination by intermediaries, building a
■ Golden rice innovation system, global. Complex strong skill base, and creating an enabling environment
partnership of multinational companies, interna- for innovation to take place.
Sources: Adapted from Bernet, Thiele, and Zschocke 2006; Hall, Clark, and Naik 2007; World Bank 2006; A. Hall, personal
communication; R. Rajalahti, personal communication.
Consumers
National
Agroprocessors agricultural
research system
Exporters
Input suppliers
National extension and National education and
Standards business development training organizations
agencies services
Land agencies
Credit agencies
Global public investments in agricultural science, tech- from internally generated resources, which include con-
nology, and development have increased significantly tracts with private and public enterprises (26 percent).
over the years, rising from US$16 billion (reported in The private sector spends an estimated US$16 billion
1981) to US$23 billion in 2005 purchasing power par- (in 2005 purchasing power parity dollars) on agricul-
ity dollars in 2000 (figures from Beintema and Elliott tural research, equivalent to 41 percent of the global
2009; 2000 is the latest year for which comparable investment (public and private). Almost all of these
global data are available). The increase is somewhat private investments are made by companies pursuing
deceptive, because it has been concentrated in just a agricultural R&D in high-income countries. In addition,
handful of countries (Pardey et al. 2006). More recent several international research centers focus on agricul-
data indicate that investments in science and technol- tural R&D to produce international public goods.
ogy continue to increase. Investments in R&D, including research and advi-
Government remains the largest contributor to pub- sory services, have been the World Bank’s major strategy
lic agricultural research, accounting for an average of to improve agricultural productivity and innovation
81 percent of funding (of more than 400 government (World Bank 2009b). The World Bank alone invested
agencies and nonprofit institutions in 53 developing US$4.9 billion (US$5.4 billion in real million dollars,
countries sampled). Only 7 percent of funding is pro- 2010 = 100) into agricultural R&D and advisory ser-
vided by donors as loans or grants. Funding supplied vices over the 20 years from 1990 to 2010. The World
through internally generated funds, including contrac- Bank’s annual commitments to agricultural research,
tual arrangements with private and public enterprises, extension, education, and training have ranged from
on average accounts for 7 percent of the funding for US$100 million to US$800 million. The very low com-
public agricultural research. Nonprofit organizations, mitments by governments and donors to agricultural
which collect about two-thirds of their funding from tertiary education since the early 1990s are an especially
producer organizations and marketing boards, are also worrying trend (World Bank 2007a), because they imply
more active than government agencies at raising income that a capacity for innovation is not being sustained.
Sources: Author.
Table O.1 Defining Features of the Three Main Frameworks Used to Promote and Invest in Knowledge in the
Agriculture Sector
National agricultural Agricultural knowledge and Agricultural
Defining feature research systems information systems innovation systems
Actors Research organizations Farmer, research, extension, Wide spectrum of actors
and education
Outcome Technology invention and Technology adoption and innovation Different types of innovation
transfer
Organizing principle Using science to create new Accessing agricultural knowledge New uses of knowledge for
technologies social and economic change
Mechanism for innovation Technology transfer Knowledge and information Interaction and innovation
exchange among stakeholders
Role of policy Resource allocation, priority Linking research, extension, Enabling innovation
setting and education
Nature of capacity Strengthening infrastructure Strengthening communication Strengthening interactions between all
strengthening and human resources between actors in rural areas actors; creating an enabling environment
■ Increasing the participation of farmers, the private posals. Competitive funds have increased the role
sector, and other stakeholders in research governing of universities in agricultural R&D in some coun-
boards and advisory panels to attain real influence tries. Continuing challenges include limited engage-
over research decisions and priorities. The participa- ment with the private sector, sustainability of
tion of women farmers is particularly important, funding, the bias against strategic R&D, and the
given their crucial role in rural production systems, heavy transaction costs.
the special constraints under which they operate ■ Promoting producer organizations to reach eco-
(for example, time constraints), and their range of nomies of scale in services and market activities,
activities and enterprises, including marketing, pro- increase farmers’ ability to demand better services, and
cessing, and food storage. help producers to hold service providers accountable.
■ Decentralizing research to bring scientists closer to ■ Mixing public and private systems by enabling
clients and better focus research on local problems farmer organizations, NGOs, and public agencies
and opportunities. to outsource advisory services, identify the “best
■ Decentralizing extension services to improve fit” for the particular job, and recognize the
accountability to local users and facilitate clients’ private-good attributes of some extension ser-
“purchase” of research services and products that vices. For example, approaches based on public
respond better to their needs. Matching-grant pro- funding that involve local governments, the pri-
grams for farmer and community groups allow vate sector, NGOs, and producer organizations in
them to test and disseminate new technologies. extension service delivery may be most relevant to
■ Establishing competitive funding mechanisms that subsistence farmers, whereas various forms of pri-
involve key stakeholders, especially users, in vate cofinancing may be appropriate for commer-
promoting demand-driven research, setting pri- cial agriculture, extending to full privatization for
orities, formulating projects, and screening pro- some services.
Sources: World Bank 2005, 2007b, 2010.
For innovation to take place, effective bridging mech- ICTs that serve as information “collectors,” “ana-
anisms are often needed to facilitate communication, lyzers,” “sharers,” and “disseminators” are already
translation, and mediation across the boundaries positively affecting agricultural interventions in
among the various actors in agricultural research and developing countries. Affordable mobile applications,
development and between knowledge and action. in particular, provide linkages to previously isolated
Such facilitating and bridging mechanisms can actors: information on prices, good farming practices,
include diverse innovation coordination mechanisms soil fertility, pest or disease outbreaks, and extreme
such as networks, associations, and extension services, weather has expanded farmers’ opportunities to capi-
but also ICT. talize on markets, react to unfavorable agricultural
ICTs offer the opportunity to improve knowledge conditions more effectively, and better interact with
flows among knowledge producers, disseminators, and public service agents.
users and, for example, among network partners; sup- Satellite imagery and aerial photography have
port the opening up of the research process to interac- increased the capacity of scientists, researchers, and
tion and more accessible knowledge use; and more even insurance providers to study farm conditions in
cost-effectively widen the participation of stakeholders remote areas and assess damage from climatic chal-
in the innovation and governance process. ICTs have lenges like drought. Increasingly affordable technolo-
more often been associated with providing advanced gies like radio frequency identification tags and other
services to number crunching and data management, wireless devices are improving livestock management,
geospatial applications, knowledge-based systems and allowing producers to monitor animal health and trace
robotics, and improved farm equipment and processes, animal products through the supply chain. A persist-
but less often been considered for connecting diverse ent barrier to innovation, the lack of rural finance, is
innovation communities—whether at the local, sub- also lifted by digital tools.
sectoral, and national level.
innovation across the spectrum of actors in the AIS and to organization of stakeholders, agricultural education and
develop an enabling environment for innovation to occur. training, and research and advisory services). Module 5 is
This sourcebook reviews and assesses experiences with concerned with the incentives and resources needed for
those complementary investments. It outlines the needs, innovative partnerships and business development, and
opportunities, and priorities for such investments and module 6 describes complementary investments that create
offers specific tools and guidance to develop interventions a supportive environment for innovation. Module 7 pro-
in different contexts. As emphasized in the next section— vides information on assessing the AIS and identifying and
which offers more detail on the sourcebook’s contents and prioritizing prospective investments, based partly on what
organization—this sourcebook reflects work in progress has been learned from monitoring and evaluating similar
and an evolving knowledge base. The emerging principles efforts. A glossary defines a range of terms related to agri-
it contains will change as practitioners learn and develop culture, innovation, and development.
creative new approaches to innovation for agricultural Each module generally has four parts:
development.
1. The module overview introduces the theme (a particular
area of investment), summarizes the major issues and
SOURCEBOOK MODULES
investment options, and points readers to more detailed
The content of this sourcebook is presented in line with the discussions and examples in the thematic notes and inno-
project cycle or phased approach that practitioners use vative activity profiles that follow the overview. The
(table O.2). Modules 1 through 4 discuss the main invest- overview provides substantive contextual information for
ments related to innovation capacity (coordination and each topic, including lessons from earlier approaches in
Source: Author.
national agricultural research systems and agricultural will increasingly possess a special mix of skills that con-
knowledge and information systems. tribute to the AIS in particular ways. Stronger technical
2. Thematic notes discuss technical and practical aspects of skills are very important, but they must be complemented
specific investment approaches and programs that have with functional expertise, because the new ways of working
been tested and can be recommended (sometimes with within an AIS require a range of skills: scientific, technical,
provisos) for implementation and scaling up. The notes managerial, and entrepreneurial skills and skills and
review the considerations, organizing principles, ques- routines related to partnering, negotiating, building con-
tions, performance indicators, and lessons that would sensus, and learning.
guide the design and implementation of similar
approaches or programs. Coordination and collective action for
3. Innovative activity profiles describe the design and high- agricultural innovation (Module 1). Coordination
light innovative features of recent projects and activities and organization of stakeholders may serve many pur-
related to the area of investment described in the mod- poses, such as building coherence and setting consensus-
ule. The profiles pay close attention to features that con- based priorities, strengthening the sharing of knowledge
tributed to success and that technical experts can adapt and resources, strengthening collaboration through joint
for their own operations. The activities and projects processes and products, and reducing transaction costs
described here have not yet been sufficiently evaluated to and reaching economies of scale in extension and market
be considered “good practice” in a range of settings, but activities. Without organizations (or brokers) to address
they should be monitored closely for potential scaling social and resource imbalances and transaction costs,
up. Their purpose is to ignite the imagination of task prospects for participating in innovation processes and
managers and technical experts by providing possibilities systems are limited, especially for poor people. Effective
to explore and adapt in projects. platforms help to organize stakeholders with different
4. References and further reading offer resources and addi- assets, knowledge, and experience.
tional information. Module 1 discusses the capacities and resources
required to organize and coordinate stakeholders, pro-
viding examples and lessons from previous efforts. The
THEMES COVERED IN THE MODULES
corresponding areas of investment include innovation
Each sourcebook module covers a theme related to assessing coordination bodies (which can be national, multisectoral,
and designing investments in a particular area integral to or specific to the agriculture sector), subsector or industry
the AIS. The discussion that follows gives readers a broad associations or networks, producer organizations, produc-
idea of the content and concerns of the modules. The non- tive alliances, and self-help groups to foster innovation. A
agricultural and cross-cutting issues treated in each module range of policies and institutions is also needed to support
are presented as well. coordination and collective action at different levels of
governance in the AIS.
Building the capacity to innovate (Modules 1–4)
Agricultural education and training to support AIS
For an innovation system to be effective, the capacity of its (Module 2). Agricultural innovation is a product of the
diverse actors must be built and strengthened; many actors capacity, resources, and interactions that are brought to
The role of the public and private sector. The public sec- tive approaches on knowledge dissemination and adop-
tor is expected to remain an important provider and/or tion) are required to identify and develop appropriate
funder of R&D, education, and extension services in solutions that contribute to adaptation, mitigation, and
developing countries, where 94 percent of the invest- green growth. The modules describe institutional
ment in agricultural R&D still comes from public cof- approaches that lend themselves well to generating and
fers (World Bank 2007b). Yet if markets now drive adopting climate-smart solutions.
much of the agenda for agricultural R&D and new Gender. The AIS approach argues that diversity,
actors are more prominent in agriculture, what is the inclusion, and participatory approaches are critical to
proper role of the public sector? Each module examines building the quality of social capital needed for resilient
the roles of the public and private sector with a view to and sustainable innovation systems. It takes into
answering that question. account the many actors along the value chain; diverse
Climate change and green growth. Climate change organizational forms to facilitate education, research,
adaptation and mitigation are key goals of an agricul- and extension systems; and the practices, attitudes, and
tural knowledge system. Technical as well as organiza- policies that frame agricultural production and trade.
tional innovations (for example, the use of climate-smart Every module addresses gender issues through exam-
and green technologies, coupled with inclusive and effec- ples and/or policy interventions.
A
pered as well by segmented markets, different technological
innovate not in isolation, but through interacting regimes, lack of collaboration cultures, inappropriate
with other actors—farmers, firms, farmer organi- incentives, weak channels of communication, and insuffi-
zations, researchers, financial institutions, and public cient innovation capabilities.
organizations—and the socioeconomic environment. In Effective interaction, coordination, and collective action
other words, agricultural innovation is an organizational are based on existing capabilities, appropriate incentives,
phenomenon influenced by individual and collective and the empowerment of individuals; thus they rely on vol-
behaviors, capabilities for innovation, and enabling condi- untary action. Coordination and interaction can emerge
tions. Interaction, coordination, and collective action are spontaneously or be induced by specific public or private
based above all on the actors’ capacity to identify opportu- programs. Effective coordination requires (1) a committed
nities for innovation, assess the challenges involved, and and capable leadership; (2) appropriate incentives; (3) an
access the social, human, and capital resources required for enabling environment, in which important stakeholders
innovating, learning, and sharing information. Better coor- that coordinate their activities have the mandate, culture,
dination can improve the design and implementation of and freedom to participate; (4) stable support programs;
innovation policies by allowing more actors to voice their (5) efforts to strengthen the capabilities for innovation and
needs and concerns, resulting in more inclusive policies collective action; and (6) adaptation of public organiza-
and faster diffusion of innovations. Stronger interaction tions to participate more effectively in innovation
and coordination can also induce all actors in an innova- processes. The organizational innovations (committees or
tion system, particularly public research and extension councils, platforms or networks, and diverse associations)
organizations, to be more aware of and responsive to the reviewed in this module show that many innovations are
needs and concerns of other actors, especially resource- not planned in detail beforehand; instead, they result from
poor households. Despite such advantages, interaction and the adaptation of organizational structures in response to
coordination have been difficult to achieve for the same emerging problems or opportunities. They also show that
reasons that hinder collective action: opportunistic behav- creative and committed individuals guide the adaptation
ior; lack of trust, incentives, and capacity; and difficulties in and that an enabling environment allows the organizations
setting and enforcing rules. Interaction and coordination in to change.
15
RATIONALE FOR INVESTING IN policies by allowing more actors to voice their needs and
COORDINATION AND COLLECTIVE concerns, resulting in more inclusive policies and faster dif-
ACTION FOR INNOVATION fusion of innovations.2 Stronger interaction and coordina-
tion also induce all actors, especially public research and
Many different actors in an AIS generate and disseminate
extension organizations, to be more aware of and respon-
innovations, including farmers, firms, farmer organizations,
sive to the needs and concerns of other actors, especially
researchers, financial institutions, and public organizations.
resource-poor households. Box 1.2 illustrates the benefits
These actors do not innovate in isolation; rather, they
arising from one type of interaction: learning alliances (see
innovate through interacting with other actors and the
also IAP 4 in module 4). The more general economic,
socioeconomic environment. Their interactions take differ-
social, and environmental benefits of investing in coordi-
ent forms, such as consultations to define innovation
nation, interaction, and collective action for agricultural
policies, joint research activities, or participation in or facil-
innovation and in building organizational capabilities are
itation of innovation networks and value chains (box 1.1).
summarized in the sections that follow.
Agricultural innovation is increasingly recognized as an
organizational phenomenon influenced by individual and
collective behaviors (World Bank 2006). These behaviors, in
Fostering economic growth
turn, depend on the individual and collective capabilities
possessed by the actors, on culture,1 incentives, routines, Better-connected actors with stronger innovation capabili-
and the environment (Ekboir et al. 2009). ties help to solve coordination problems among potential
The importance of interaction, coordination, and col- partners, build trust for collaboration, build up innovation
lective action in innovation systems has been recognized capabilities, and develop a better understanding of the
for more than two decades (Freeman 1987; Lundvall 1992; needs and capabilities of other actors in the AIS, especially
Nelson 1993). Common reasons for AIS actors to interact marginalized groups. Other economic benefits of coordi-
and address issues collectively include improved identifica- nating more capable actors include the following:
tion of opportunities for and challenges with innovation;
leveraging of human and capital resources; learning and ■ Lowering the cost of searching for and using technical
information sharing; and (obviously) economic and/or and commercial information, easing the identification of
social benefits. Interaction and coordination may also emerging technical, social, and economic needs and
improve the design and implementation of innovation opportunities, facilitating experimentation on alternative
Innovation network. A diverse group of actors that vol- formal or informal. Collaboration may take different
untarily contribute knowledge and other resources forms, including frequent exchanges of information,
(such as money, equipment, and land) to jointly develop joint priority setting for policies and programs, and
or improve a social or economic process or product. joint implementation of innovation projects.
These networks are also known as innovation platforms. Innovation brokers. Teams of specialists that
Farmer organization. An organization integrated combine a strong background in science with knowl-
only by farmers seeking solutions to production or edge of business and commercialization and/or
commercial problems. the creation of innovation networks. Innovation bro-
Value chain. The set of linked activities conducted by kers are also known as change agents or technology
the different actors that a firm organizes to produce and brokers.
market a product. Innovation capabilities. The skills to build and
Organization. A group of actors that collaborate integrate internal and external resources to address
over a sustained period. An organization can be either problems or take advantage of opportunities.
Source: Author.
A learning alliance is a process-driven approach that organizations working with 33,000 rural families in
facilitates the development of shared knowledge among El Salvador, Guatemala, Honduras, and Nicaragua by
different actors. Learning alliances contribute to significantly changing the partners’ attitudes and prac-
improved development outcomes because lessons are tices. As they became better connected, organizations
identified and learned more quickly and because working on similar topics improved their access to
stronger links among research organizations and other information and knowledge of rural enterprise devel-
actors in the AIS improve the focus on research and opment and their access to improved methods and
development practices. tools. Attitudes shifted from competition to collabora-
Since 2003, international and local nongovernmen- tion. Partners experienced how working together
tal organizations (NGOs), a national university, the enhanced their capacity to serve rural communities
International Center for Tropical Agriculture (CIAT), and attract donor funding. The increased effectiveness
and the International Development Research Centre of the partners’ projects and the development of more
(IDRC) have come together to explore how learning strategic new projects indicate how development prac-
alliances can improve links between research and tices and knowledge management improved. These
development actors. The learning alliance has worked shifts have contributed to a more efficient innovation
with 25 agencies as direct partners, and through their system, as seen in the shared use and generation of
networks it has influenced 116 additional organiza- information, joint capacity-building programs, and
tions. Over the years, the alliance fostered change in large-scale, collaborative projects.
solutions, opening market opportunities, and developing to the needs of nonpublic actors and help them to use tech-
competitive capabilities. nical and commercial information, thus strengthening their
■ Integrating more effectively into innovation networks. innovation capabilities.
■ Developing new skills and more effectively using human,
social, physical, and financial resources, thus fostering
Reducing poverty
economic growth.
■ Participating in the development and diffusion of inno- Poor households usually have limited human, social, phys-
vations, including action-research projects and new ical, and financial resources (Neven et al. 2009). Individu-
approaches to extension. als and organizations with facilitation and/or brokering
skills can help these households to pool their limited
resources among themselves or with other actors (for
Producing public goods
example, NGOs or supermarkets) to achieve economies of
Individuals and organizations with facilitation and/or bro- scale, enter new markets, or access new resources, such as
kering skills (in other words, with the capacity to promote technical information or credit (World Bank 2006).
interaction) produce three important public goods. First, by Although the direct impact of farmer organizations on
linking public, private, and nonprofit actors, they facilitate poverty seems relatively modest (see TNs 2 and 4), organi-
the identification of emerging trends and improve policy zations can have important indirect effects on poverty by
dialogues and the design and implementation of innovation fostering economic growth, creating employment, prevent-
and agricultural policies at the global and domestic level. ing buyers from benefiting at the expense of suppliers,
Second, by interacting more actively with researchers, they building innovation capabilities, and protecting marginal
help researchers to generate more relevant scientific infor- groups (such as women or landless farmers) from further
mation. Third, by interacting with extension organizations, marginalization (for example, see IAPs 4 and 6). They can
they can help extension services to become more receptive also negotiate with authorities on behalf of their members,
MODULE 1: OVERVIEW 17
increasing the public resources invested in poverty allevia- needed but does not yet exist, and preparing professionals
tion and affirmative action programs. with strong skills in disciplines required by innovating
actors.3 To play this role, researchers must interact inten-
sively with other actors in the innovation system. While in
Improving environmental outcomes
recent years public research institutes and universities in
Innovations that improve the sustainable use of natural developing countries have been pressed to open up to the
resources are usually developed and diffused by networks needs of other stakeholders in the innovation system, few
with a diverse set of partners and capabilities (IAP 1). Their have been able to adapt because they do not have the
diversity facilitates access to a large pool of technical infor- capabilities and incentives to interact with nonacademic
mation, the implementation of participatory and action- agents, have weak research capabilities, and resist change
research programs, effective diffusion activities (such as (Ekboir et al. 2009; Davis, Ekboir, and Spielman 2008).4,5
farmer-to-farmer extension), and collective action for the Similarly, most farmers and NGOs have weak links with
management of common resources. Individuals and organ- public organizations and governments, including the tradi-
izations with stronger capabilities and facilitation and/or tional research, extension, and regulatory agencies as well as
brokering skills can also help to articulate environmental local authorities and financing organizations.
demands that are often excluded from national policies. The sections that follow review the main elements of
These demands are often linked to poverty alleviation, effective interaction, coordination, and collective action,
because poor households tend to live in unfavorable and starting with the conditions for effective interaction and
fragile environments. coordination and the instruments and incentives needed.
The main types of coordinating bodies and organizations
are described, and the crucial need to build innovation and
CONTENT OF THIS MODULE organizational capabilities in new or existing organizations
After looking in detail at past experiences with coordinating is discussed.
and fostering collective action for innovation (such as
through formal and informal coordination agents and/or
organizations), this module describes the conditions, Conditions that foster the effective interaction
and coordination of actors for collective
instruments, and incentives for coordination and discusses
action and agricultural innovation
ways of building innovation capabilities in groups of actors
in an AIS. It also briefly reviews key policy issues; new direc- Interaction and coordination for collective action and agri-
tions, priorities, and indicators that can help to monitor cultural innovation can be successful only if (1) the AIS
progress and assess the results of investing in interaction actors perceive that the benefits of contributing to a com-
and coordination; and the conditions and capabilities that mon effort are bigger than the associated costs; (2) they have
improve the chances of success. the appropriate human and social resources to participate in
collective action; and (3) they feel that they can influence
the processes in which they participate. Interaction and
PAST EXPERIENCE
coordination may emerge spontaneously. An effective value
Despite their advantages, interaction and coordination have chain, in which actors collaborate (often without formal
been difficult to achieve for the same reasons that hinder col- contracts) to supply a particular product to a market, is an
lective action: opportunistic behavior; lack of trust, incen- example of spontaneous coordination. Coordination may
tives, and capacity; and difficulties in setting and enforcing also arise from deliberate interactions, such as a multistake-
rules. Interaction and coordination in the innovation systems holder forum where innovation policies are discussed.
of developing countries are also hampered by segmented Effective interaction, coordination, and collective action
markets, different technological regimes, lack of collabora- are based on existing capabilities and on appropriate incen-
tion cultures, inappropriate incentives, weak channels of tives and empowerment of individuals, and thus they rely
communication, and insufficient innovation capabilities. on voluntary action.6 Because effective interactions and trust
Interacting in a sustained way has proven difficult, par- seldom emerge spontaneously, programs that support inter-
ticularly among research and educational institutions, mediaries and build innovation capabilities are often neces-
which have an important role to play in facilitating access to sary to facilitate the process. Box 1.3 lists factors essential to
scientific information, generating information that is effective interaction and coordination.
Every innovation is a new combination of resources, ■ Facilitators work effectively only when financing is
particularly ideas, skills, information, different types of sustainable and stable. Private actors will rarely pay
capabilities, interorganizational learning and knowl- for services that are initially difficult to define and
edge, and specialized assets. Organizational innovations whose real value can be determined only after the
are as important as product or process innovations. intervention finishes. For this reason, public funds
Individuals or organizations may facilitate the should be made available to support coordinators of
exchange of resources and the coordination of actions innovation processes and the implementation of
to develop innovations. This process among heteroge- institutional and organizational innovations.
neous actors may increase the diversity of resources and ■ Inducing actors to alter their behaviors may require
ideas that are available. The greater the variety of these changes in laws and regulations. Given the uncertain
factors available to innovators, the greater the scope for nature of innovation processes, such changes should
them to be combined in different ways, producing be introduced after they have been tried in pilot proj-
innovations that can be both more complex and more ects and after different actors (private firms, public
sophisticated. But variety is not enough for effective research organizations, and relevant stakeholders
innovation. It is also necessary to have the incentives such as the main ministries, regulators, and NGOs)
and capacity to search the pool of ideas and know how have been involved in policy design, consultations,
to combine them. In other words, incentives and inno- strategizing, and implementation. It is also impor-
vation capabilities determine how actors innovate. tant to invest in preparing high-quality information
Effective coordination for innovation occurs when to support decision making, such as background
(1) a committed and capable leadership promotes the studies commissioned from national or international
collaboration; (2) one organization offers appropriate think tanks and experts, sectoral dialogues between
(often new) positive and negative incentives to individu- employers and employees’ unions, and high-level
als from cooperating organizations (such as researchers steering groups (see module 6, TN 1 and TN 2).
or farmers); (3) important stakeholders that coordinate ■ Interaction and coordination require adaptive man-
their activities have the mandate, culture, and freedom to agement to help participating actors to change their
participate; and (4) individuals participating in the col- behaviors as new actors join the informal organiza-
laboration do not change often (a relatively common tion and the innovation process matures. Adaptive
problem with high-level civil servants). management cannot be implemented well without
Other factors are also essential to interaction and monitoring and evaluation systems that focus more
cooperation: on processes than on outcomes.
■ Many public research and higher education organiza-
■ Interactions and cooperation are not costless or easy tions in developing countries have incubator pro-
to implement; therefore, they have to be managed grams to foster the emergence of private firms and
with a clear view of the outcomes being sought and other organizations. Before expanding these pro-
the associated costs. grams, it is important to assess their capabilities to
■ Interaction and collaboration thrive only if they are manage innovation programs and, if their capabilities
based on trust, which fosters greater commitment, are weak, to consider creating new, dedicated agencies,
more thorough knowledge sharing, and better con- not necessarily within the public sector. Also consider
flict resolution. divesting from obsolete schemes and institutions.
■ Motivated, capable, and autonomous facilitators are ■ “System failures” are prevalent, caused by weak incen-
essential for inducing collaboration. Well-connected tives for collaboration, conservative organizational cul-
facilitators and collaborators pull promising new tures, lack of trust among potential partners, regulations
entrants into their networks and collaborate with a and programs that hamper interactions, and ineffective
wide assortment of partners, exposing them to more financing for innovation. By diminishing these failures,
experiences, different competencies, and added facilitators or collaborators promote collective action,
opportunities. In rapidly changing industries, facili- the production of public goods for innovation, and the
tators lacking such connections fail to keep pace. development of the innovations themselves.
Sources: Authors, based on Fountain 1999; Axelrod and Cohen 1999; Hakansson and Ford 2002; Fagerberg 2005; Powell and
Grodal 2005; Klerkx and Leeuwis 2009; Klerkx, Aarts, and Leeuwis 2010.
MODULE 1: OVERVIEW 19
Instruments and incentives for interaction, for most farmers and small companies the tax deductions
coordination, and organization of actors for are too small to finance research or innovation projects.
agricultural innovation At the macro level, policies can facilitate coordination by
Effective coordination and organization of actors for agri- setting new incentives and rules by which agents operate. At
cultural innovation can be supported with different instru- other levels of the AIS, successful coordination of actors
ments, including building capabilities for innovation (TN requires innovation capabilities (discussed later) and appro-
4); joint priority setting or technology foresight exercises priate incentives, such as effective markets (which create
(TN 1), joint research and/or innovation programs, efforts opportunities to benefit from innovations) and innovation
to foster the emergence of innovation platforms (module 4, funds (see module 5, TN 2). At lower levels, actors in the AIS
TNs 1 and 2) and value chains (TN 3), the creation of ven- coordinate their actions in response to public incentives
ture capital (module 5, TN 6), and support for establishing (such as social programs financed by local or international
innovation brokers (module 3, TN 4). Innovation councils donors), market opportunities (such as high-value agricul-
and advisory committees involving different ministries can ture), or problems that affect whole communities (such as
coordinate policies, joint priority setting, and technology the management of natural resources). Programs to pro-
foresight exercises, which are often supplemented with tem- mote collaboration at the lowest levels of the AIS include
porary stakeholder consultation arrangements (see module funding innovation brokers (see module 3, TN 4), extension
7, TN 3). Innovation forums and market and technology agents, and incubators; fostering the emergence of innova-
intelligence can create common visions among agents, thus tion networks (TN 2); providing resources for coordination
fostering coordination. activities (such as face-to-face meetings), and building
If they do not provide proper incentives for organizations actors’ capabilities so that they can better search for and use
and especially individuals, coordination initiatives result technical and commercial information. Finally, because
only in formal interactions that have little effect on the AIS. innovators and brokers cannot innovate in an unfavorable
Individuals respond to the incentives offered to them. environment, physical and communications infrastructure
When organizations do not introduce incentives to support should be developed, institutions must be strengthened, and
external collaboration and coordination, their members regulations must be updated periodically to adapt to new
(whether researchers, employees, or farmers) simply con- technologies and market requirements (see module 6 on the
tinue their normal activities. For example, it has been very enabling environment for AIS).
difficult for research and education organizations in devel-
oping countries to participate in innovation processes. Types of coordinating bodies and
Effective participation of nonacademic actors in the gov- organizations in the AIS
erning bodies of research organizations can induce research
Aside from the traditional coordinating activities led by min-
organizations to interact better with nonacademic agents.
istries of agriculture, a wide array of coordinating bodies
For this to happen, the nonacademic actors must have a
contributes to agricultural innovation. Coordinating bodies
good understanding of the dynamics of innovation and
and other forms of organizing actors (either individuals or
research (Ekboir et al. 2009). When the agricultural tech-
organizations) are becoming increasingly important owing
nology institutes are part of the agriculture ministry and the
to the challenges imposed by globalization, emerging tech-
latter has little interaction and no formal links with the
nologies, the increasing complexity of science, new forms of
offices in charge of general scientific and innovation policies
innovation, and global issues such as climate change, access
(research councils or other ministries), agricultural research
to clean water, and poverty reduction. These bodies do not
and innovation policies can be divorced from other science
necessarily belong to the public sector but often have links to
and technology policies. This separation has two important
the highest levels of government (vertical coordination).
consequences. First, the incentives offered to researchers
Interaction and coordination increasingly are promoted and
often discourage interactions with farmers, especially when
supported by different agents at the specific level in which
these incentives value indexed publications over participa-
they operate. Almost any agent can coordinate an innovation
tion in innovation processes. Second, incentives for innova-
process if it has the personal, financial, and social resources
tion are often designed in ways that prevent farmers from
to do so.
using them. For example, it is common to offer tax incen-
Over the years, formal and informal structures that
tives for private investments in research and innovation, but
coordinate actors within and between different levels of the
MODULE 1: OVERVIEW 21
22
Table 1.1 Examples of Coordinating Bodies, Potential Participants, and the Levels at Which They Operate
AGRICULTURAL INNOVATION SYSTEMS: AN INVESTMENT SOURCEBOOK
Actors that participate Type of Countries where
Structure in the coordination coordination it can be found Examples of coordinating bodies
Macro (national) level
Councils of ministers or Ministries, science councils, Spontaneous when Canada, Finland, Rep. of Research and Innovation Council, Finland,
advisory councils to the public bodies, private firms, actors follow the Korea http://www.aka.fi/en-gb/A/Science-in-
president or ministries farmers, farmer rules; formal when society/Strategic-Centres-for-Science-Technology-
(through policies and organizations, NGOs ministries coordinate and-Innovation/Background-to-CSTIs/; National
regulations) policy making Innovation Agency,Thailand, www.nia.org.th
Science and innovation Public and private research, Formal and informal Brazil, Chile, European Consejo Nacional de Ciencia y Tecnología, Mexico,
councils private firms, funding Union, Finland, India, http://www.conacyt.gob.mx/Paginas/default.aspx
agencies, sectoral and Mexico, South Africa,
farmer organizations United States
Meso (sectoral, regional, or provincial) level
Agricultural Mostly public, but the newer Formal and informal Australia, Austria, Indian Council of Agricultural Research,
science/research types with public, private, Bangladesh, India, www.icar.org.in; Latin American and Caribbean
councils farmer, civil society Netherlands, Norway Consortium to Support Cassava Research and
participation Development; Australia Rural Research and
Development Council, www.daff.gov.au/
agriculture-food/innovation/council; Bioconnect,
Netherlands, www.bioconnect.nl
Coordinating bodies (for Public and private research, Formal and informal Argentina, Australia, Asociación Argentina de Productores de Siembra
several sectors or private firms, funding Chile, Mexico, Directa, www.aapresid.org.ar; Fundación para la
specialized in the agencies, sectoral and Netherlands, Innovación Agraria, Chile, www.fia.cl; Medicinal
agriculture sector) farmer organizations Thailand, United Herbs Board/Association, India
Kingdom
Micro (farmer) level
Innovation networks Private firms, farmers, farmer Informal All countries Papa Andina, International Potato Center,
organizations, NGOs, www.papandina.org; Bioconnect, Netherlands,
funding agencies, researchers www.bioconnect.nl
Value chains Private firms, farmers, farmer Informal All countries Numerous examples exist; no specific example is
organizations, NGOs given here
Product marketing Private firms, farmers, farmer Formal Colombia, Israel, Kenya, Federación Nacional de Cafeteros de Colombia,
organizations organizations New Zealand www.cafedecolombia.com; Fresh Produce
Exporters Association of Kenya, www.fpeak.org
Public-private Private firms, farmers, farmer Formal Almost all countries Bioceres, Instituto Nacional de Tecnología
partnerships organizations, research Agropecuaria, Argentina;
organizations http://www.bioceres.com.ar/trigo_biointa/trigo_b
_regalias.html
Innovation parks Private firms, research Formal and informal Almost all countries Waikato Innovation Park, New Zealand,
organizations www.innovationwaikato.co.nz
Incubators Private firms, farmers, farmer Formal and informal Almost all countries International Crops Research Institute for the
organizations, research Semi-Arid Tropics, Agribusiness Incubator, India,
organizations www.agri-sciencepark.icrisat.org
Source: Authors.
Box 1.4 Thailand’s National Innovation Agency
Thailand’s National Innovation Agency (NIA), estab- ■ Build up the national innovation system. Although
lished in 2003, supports the development of innova- NIA is in an ideal position to propose measures to
tions to enhance national competitiveness and gives enhance policy coherence across ministries, its port-
significant attention to agriculture and other biologi- folio suggests that it focuses more on discrete and
cal sciences. Operating under the overall policy guid- disguised subsidies for firm-level innovation.
ance of the Ministry of Science and Technology, in
2009 NIA had a budget of about US$10.8 million. NIA One challenge is that NIA’s definition of its role as
is unusual in that it offers direct financial support to “coordinating industrial clusters both at policy and
private companies for innovation-related projects. In operational levels, promoting innovation culture, and
2009, it supported 98 “innovation projects” initiated building up innovation systems, with a broader aim to
by private companies. The agency essentially shares transform Thailand into an innovation-driven econ-
the investment risks associated with innovative,
omy” appears to overlap with the mandates of the
knowledge-driven businesses through technical and
newly established Office of Science, Technology, and
financial mechanisms. NIA’s main strategies are the
following: Innovation (STI), the National Economic and Social
Development Board, National Science and Technology
Development Agency, and Office for SME Promotion.
■ Upgrade innovation capability, with a focus on bio- Of particular note is the government’s assignment of
business, energy and environment, and design and
the mandate to draft Thailand’s 10-year science, tech-
branding. NIA encourages the development of start-
nology, and innovation policy to the STI rather than the
ups and supports commercialization of research.
■ Promote innovation culture within organizations of NIA. In 2010 the NIA was upgraded by government
all types. NIA operates an innovation management decree from a project within the Ministry of Science
course for executives, National Innovation Awards, and Technology to a public organization. Its new board
an innovation ambassador scheme, an Innovation comprises representatives from key government agen-
Acquisition Service, and a Technology Licensing cies as well as the private sector, and it is currently
Office. chaired by the executive chairman of Bangkok Bank.
Sources: Wyn Ellis, personal communication; NIA, www.nia.or.th; Brimble and Doner 2007; Intarakumnerd, Chairatana, and
Tangchitpiboon 2002.
research programs, and often coordinating and creating exceptions include the Australia Agriculture and Rural
improved links between public agricultural research and Development Council (box 1.10 in TN 1) and Chile’s Fun-
extension organizations. Research may also be coordinated dación para la Innovación Agraria (FIA, Agricultural Inno-
at the regional level (IAP 5 presents an example related to vation Foundation; IAP 3).
cassava). However, the effectiveness of these councils varies As few countries have national councils specifically
greatly. Many have a narrow representation of stakeholders, mandated to coordinate agents in the AIS, most agricul-
consisting primarily of ministerial representatives or tural innovation is coordinated at the subsectoral level via
researchers, and their research prioritization is not necessar- product marketing companies and associations, such as the
ily consultative or does not rely on rigorous evidence. They Fresh Produce Exporters Association of Kenya (box 1.5)
often have little influence on the policy process and how and the Colombian Coffee Growers’ Federation, or farmer-
research is conducted. For further details, see TN 1. managed foundations, such as Mexico’s Produce Founda-
Given the predominance of national innovation councils tions (IAP 2).
and agricultural research councils, there are few “true” agri- Marketing or commodity boards were the first type of
cultural innovation councils, mandated to coordinate and coordinating bodies to be created and have been common
prioritize investments in agricultural innovation. Notable in both developed and developing countries for many
MODULE 1: OVERVIEW 23
Box 1.5 Fresh Produce Exporters Association of Kenya: A Sectoral Coordinating Body
Horticulture is the fastest-growing agriculture subsector for six months. Affiliate membership is open to firms
in Kenya, earning roughly US$1 billion in 2010. The and/or individuals serving the industry. These include
Fresh Produce Exporters Association of Kenya (FPEAK), airlines, consultants, certification bodies, input sup-
established in 1975, serves as the premier trade associa- pliers such as seed suppliers, packaging manufactur-
tion representing growers, exporters, and service ers, chemical companies, and clearing and forwarding
providers in the subsector (fresh cut flowers, fruits, and firms.
vegetables). FPEAK is part of a larger Kenya Horticul- What are FPEAK’s strategic goals and activities?
ture Council formed in 2007 through a merger between
the Kenya Flower Council and FPEAK. The Kenya Hor- ■ FPEAK has developed and implemented the pro-
ticulture Council’s role is to enhance the effectiveness tocol for Kenya Good Agricultural Practices
and efficiency of resource use and service delivery to (Kenya-GAP), against which growers can be
Kenya’s horticultural industry. audited and certified, a process that has involved
FPEAK provides a focal and coordination point for wide stakeholder consultation.
the horticulture export industry. A recognized partner ■ FPEAK’s information service disseminates news on
of the leading agricultural legislation, certification, and technical issues, trade, official regulations, and mar-
research bodies and development partners in Kenya, it ket requirements.
provides technical and marketing information and ■ FPEAK receives trade inquiries from overseas buyers
training, acts as an information center, and runs active and passes them on to members.
lobbying and advocacy programs to enhance the sec- ■ FPEAK offers training programs by specialists. For
tor’s competiveness. example, farmers, including smallholders, are trained
FPEAK structure. FPEAK is registered as a company in GAP and standards compliance in partnership
limited by guarantee. Its elected board of directors con- with exporters who are members of the association.
sists of members actively engaged in the export business. ■ FPEAK agronomists visit members’ farms and pro-
The FPEAK secretariat is responsible for administrative duction sites upon request to advise on readiness for
functions and providing services to members. FPEAK compliance, in particular to Kenya-GAP and GLOBAL
operates independently of and receives support from GAP (which sets voluntary standards for the certifi-
partners. cation of agricultural products).
Who qualifies to be a member? To become an ordi- ■ FPEAK coordinates members’ participation in trade
nary member, an exporter must have been in business events and assesses emerging markets.
Source: FPEAK, www.fpeak.org.
decades. After the wave of deregulation in the 1980s, many a diverse group of organizations representing an array of
developing countries abolished or privatized marketing goals, structures, and challenges. Examples include India’s
boards, but several public marketing boards remain. There National Dairy Development Board (box 1.6), the New
is no generally agreed definition of a commodity board. Zealand Dairy Board, Kenya Tea Board, Ghana Cocoa
Usually they are formal bodies in which different actors Board, and the Colombian Coffee Growers’ Federation.
involved in the production, transformation, and marketing
of a product discuss issues of mutual interest and some- At the micro level (organizing farmers). At the micro
times regulate their activities. They may also finance or level, farmers form local producer organizations or join pri-
implement supporting activities such as managing research vate firms and other actors in innovation networks
(either in their own institutes or by contracting external and value chains. Farmer organizations are joined only
researchers), implementing generic advertising campaigns, by producers who seek solutions to particular production or
and proposing legislation related to a product. In some commercial problems (TN 4).10 The creation of new organ-
cases, they also regulate production. Commodity boards are izations for small-scale farmers, especially cooperatives,
The Indian National Dairy Development Board ■ Create self-reliant and professionally managed coop-
(NDDB) was set up in 1965 by Parliament as a national erative institutions, responsive to members’ eco-
institution governed by a board of directors to pro- nomic and social expectations, through cooperative
mote, finance, and support producer-owned and development and governance programs to
-controlled dairy organizations and support national strengthen capacities of the primary members, man-
policies favoring their growth. The board’s work and agement committee members, staff of village Dairy
scope expanded under Operation Flood, a program Cooperative Societies, and the professionals and
supported by the World Bank from 1970 to 1996. elected boards of Milk Producers’ Cooperative
NDDB places dairy development in the hands of milk Unions. Women’s Development and Leadership
producers and the professionals they employ to Development Programs are a central activity.
manage their cooperatives. The board also promotes ■ Technical and professional skills training at Regional
other commodity-based cooperatives and allied Demonstration and Training Centers of NDDB,
industries. The government tasked NDDB with prepar- Union Training Centers, and the Mansingh Institute
ing a National Dairy Plan for meeting a projected of Technology. Programs are designed for dairy
demand for about 180 million tons of milk by cooperative boards, chief executives, managers, field
2021–22. The plan is being implemented with World staff, and workers.
Bank support. ■ Technical assistance and engineering inputs for
In 2009, India’s 1.3 million village dairy cooperatives clients such as milk producers’ and oilseed growers’
federated into 177 milk unions and 15 federations, cooperative unions and federations and central
which procured an average 25.1 million liters of milk and state government. Services offered by NDDB-
every day. In 2010, 13.9 million farmers were members qualified engineers include setting up and standard-
of village dairy cooperatives. The following are the izing dairy plants, chilling centers, automatic bulk
NDDB’s main areas of focus: milk vending systems, cattle feed plants, and infra-
structure for agro-based industry projects.
■ Support cattle and buffalo breeding, animal health
NDDB’s coordination role has come in for some
programs, and biotechnology research to improve
milk productivity. criticism. Although the board is strengthening cooper-
■ Add value by testing and transferring product, ative dairies, which supply about 70 percent of mar-
process, and equipment technologies as well as ser- keted processed milk, it has not improved the capacity
vices for analysis of dairy products and milk quality of the informal dairy sector, based on village vendors,
sampling. which produces some 80 percent of the milk in India.
has had mixed results (TN 2). Many were initiated by operating routines in response to unforeseen needs and
external agents such as NGOs or research institutes. When opportunities, especially unexpected market and social
the new organizations ran into financial problems, the developments; could participate actively in networks of
inclination was to provide them with additional support. specialized actors; and could try several institutional
This intervention isolated them from potential partners arrangements and routines until they found a configura-
and, in some cases, from markets, creating a vicious cycle tion that enabled them to fulfill their mission (Ekboir et al.
of dependence on funders (Hellin, Lundy, and Meijer 2009; TN 4 and IAP 2).
2009). Additionally, when organizations responded to the Coordination of actors in the AIS at the meso and
objectives of their funders or were captured by elites, they micro levels can also be strengthened by creating self-help
provided little benefit to the intended beneficiaries. New groups, such as farmer groups (IAPs 1 and 4). Through the
organizations tended to benefit their stakeholders mostly creation of rural productive alliances, which bring com-
when the organizations could adapt their objectives and mercial buyers together with producer organizations,
MODULE 1: OVERVIEW 25
small-scale producers tap into vital resources for reaching already exist. Collaboration can be reinforced by trans-
important markets (IAP 6). forming the actors so that they can contribute better to
Farmers may form regional associations to conduct innovation processes. For example, collaboration with for-
applied research (like the regional associations of no-till eign agroprocessing and trading companies to expose the
farmers in Brazil, described in IAP 1), provide services, agriculture sector to different business cultures and pro-
lobby decision makers, or influence the agenda of public vide access to new markets has been very effective. Another
research institutes (like the Mexican Produce Foundations effective strategy is to visit other innovators (whether
described in IAP 2). Sectoral organizations that facilitate local, domestic, or foreign), especially when the visitors
market access to large numbers of small-scale farmers by have strong innovation capabilities and the visits are part
setting standards, providing technical and financial assis- of a program to share the information with other innova-
tance, and consolidating their output are another common tors at home. Virtual platforms have also been useful when
form of coordination at the subsectoral level (TN 1). actors in the AIS have the capabilities to use them. Innova-
Innovation networks are groups of agents (including tion brokers can help marginalized groups to develop
farmers, private firms, and possibly researchers and farmer these capabilities.
organizations) that voluntarily coordinate their actions and Whether one establishes new or strengthens existing
contribute knowledge and other resources to develop jointly organizations to support coordination, innovation capabili-
or improve a social or economic process or product. The ties are essential (box 1.1). Innovation capabilities depend
membership of innovation networks changes often in both on individual traits (creativity, for example) and on col-
response to new challenges or opportunities (see TN 2, par- lective factors, such as collective learning mechanisms and
ticularly on the Papa Andina network). In contrast, value organizational cultures. In other words, innovation capabili-
chains are networks with a commercial focus, one actor (a ties depend not only on innovative individuals but also on
supermarket or broker, for example) that “organizes” and internal features of the organization, especially incentives, cul-
commands the chain, and a relatively narrow, stable mem- tures, organizational spaces for experimentation, coordinating
bership. The strengths of value chains often result from the structures, and collective action (box 1.7).
development of organizational innovations (especially the Innovation capabilities cannot be bought or built easily,
coordination of actors along the chain) that enable the cre- and their development requires important investments and
ation of new business models (see TN 1 and IAP 6). strong leadership over long periods, as exemplified by
The importance of innovation brokers is increasingly Whirlpool, a company that transformed itself from selling
recognized. Innovation brokers are teams of specialists commoditized appliances in mature markets to generating a
that combine a strong background in science with knowl- stream of breakthrough innovations that multiplied the
edge of business, marketing, and/or the creation of inno- company’s revenue 20 times in just three years (box 1.7).
vation networks. Innovation brokers support linkages Given the complexity and major investments required for
among actors in the AIS and help farmer organizations such a large set of interventions, it is unlikely that many
and private firms to manage research and innovation proj- countries and donors will implement programs of similar
ects. They teach courses on the management of innovation, scope, particularly in the case of agricultural innovations,
assess the actors’ innovation capabilities, propose actions to which are often developed by networks of actors—that is, by
strengthen them, and may accompany the implementation organizations with very weak hierarchies.
of the recommendations. Innovation brokers may also help Often, however, an external event or a few key interven-
governments and donors to develop their own innovation tions can trigger a virtuous cycle that builds up innovation
capabilities and to explore new instruments to foster inno- capabilities (box 1.8). Innovation capabilities should be
vation. NGOs, specialized service providers, or public built within organizations (farmer organizations, civil soci-
organizations (including research or educational institu- ety organizations, and private firms), in innovation brokers,
tions) can play this role. in supporting organizations (such as research institutes and
ministries), and in the enabling environment. Programs to
broaden organizational capabilities should be adapted to
Building innovation capabilities in coordinating
particular configurations of actors, problems to be solved,
bodies and organizations
and socioeconomic and institutional environments.
Given the challenges of developing new organizations, it Building organizational capabilities for innovation is
may be more feasible to strengthen organizations that particularly challenging for several reasons. First, the main
Instilling innovation as a core competence at Whirlpool ■ The creation of “innovation boards” in each region
took a massive, broad-based effort over several years, and each major business unit, made up of senior
involving major changes to leader accountability and staff who meet monthly not just to review ideas and
development, cultural values, resource allocation, projects, set goals, and allocate resources but to over-
knowledge management, rewards and recognition sys- see the continuing innovation capability-building
tems, and a whole host of other management practices process.
and policies. ■ The organization of big communication events
Here are just a few examples of these changes: called Innovation Days, where innovation teams
showcase their ideas to other Whirlpool people, the
■ The appointment of vice presidents of innovation at media, and even Wall Street analysts. Sometimes
both the global and regional level. these events are also held in suburban shopping
■ The creation of large, cross-functional “innovation malls as a way of collecting feedback and additional
teams” in each region employed solely in the search ideas from potential users.
for breakthrough ideas. ■ The creation of a comprehensive set of metrics to
■ The introduction of a companywide training pro- continually measure the company’s innovation per-
gram aimed at developing and distributing the formance as well as its progress in embedding inno-
mind-set and skills of innovation. vation as a core competence.
■ The appointment of more than 600 part-time ■ The establishment of a sophisticated IT [information
“innovation mentors” and 25 full-time “innova- technology] infrastructure called Innovation E-Space,
tion consultants,” who act as highly skilled advisers which integrates all of Whirlpool’s people into the
to new project development teams around the innovation effort and allows them to track progress
world. on innovation activities across the corporation.
■ Assess the main organizations in the AIS, analyzing stakeholders, including top managers, directors,
at least three issues: whether each organization is policy makers, funders, and field staff.
necessary, what capabilities it needs to fulfill its mis- ■ Create multistakeholder forums to discuss innova-
sion, and how those capabilities can be built. tion policies and programs.
■ Introduce new incentives so that existing organiza- ■ Promote the emergence of innovation brokers and
tions, especially public research institutes and uni- new types of interactions for innovation, such as
versities, can better innovate and integrate into public-private partnerships or innovation networks
innovation networks (see the remaining points and (module 3).
modules 2 and 4). ■ Explore new models of extension to promote orga-
■ Create awareness among decision makers of the nizational innovations (module 3).
importance and nature of organizational capabilities ■ Support organizations that seek to provide services
and of the need for sustained efforts to build them. such as farmer-led research, extension, credit, and
■ Implement training and mentoring programs on the provision of inputs in rural areas (module 3).
the management of agricultural innovation; tailor ■ Support exchanges between foreign and domestic
these programs to the specific needs of important organizations.
Source: Authors.
MODULE 1: OVERVIEW 27
factors that influence organizational capabilities are not well innovation networks, but mostly in exceptional cases. The
understood. Second, organizations are strongly conservative private sector or nimble NGOs are better equipped to coor-
(Christensen, Anthony, and Roth 2004), especially public dinate the development and diffusion of technical and com-
organizations that operate under the rules of the civil ser- mercial innovations that adapt to rapidly changing techni-
vice. Third, because interventions to build a capacity to cal or economic conditions, such as value chains for
innovate must suit the particular needs of each organiza- high-value products, or environmental innovations that
tion, the design and implementation of projects to achieve require collective action, such as the management of water
this goal require that the implementing agencies themselves resources or forests.
possess strong capabilities to innovate. The public sector (including the central, provincial, and
local governments) can support innovation by (1) setting
up an institutional environment conducive to innovation,
KEY POLICY ISSUES
including regulations, sanitary services, and intellectual
The key policy issues surrounding the organization of actors property regimes; (2) financing programs to support inno-
for innovation—the need for coordination, collective action, vation, including support for coordination of actors, sup-
and stronger innovation capabilities—concern the kinds of port for venture and angel funds, financing research and
institutions needed to foster innovation, the roles of the extension embedded in innovation programs, and strength-
organizations involved (including reforms or actions that ening innovation capabilities; (3) allowing innovators to
help organizations and marginalized groups to participate experiment with alternative approaches to achieve the pro-
more fully), and the sustainability of innovation programs. ject’s goals; and (4) building up the infrastructure, especially
transportation networks and public research and extension
institutions.
Institutional and enabling considerations
The nonprofit sector should coordinate innovation
An enabling environment (module 6) is a prerequisite for processes that open opportunities for marginalized groups
effective coordination and is developed more easily when and represent their interests in policy dialogues. Public
governments, donors, and the other actors in the AIS have a organizations may feel threatened when nonpublic actors
clear understanding of innovation processes. When such assume a leading role in fostering innovation and try to
processes are financed by governments or donors, the latter change how public organizations interact with the AIS.
often try to influence the process; governments may also Social responsibility may induce private actors to create
resent having to negotiate policies and priorities with other organizations to develop innovations without commercial
actors. Finally, coordination is more effective when laws, value, like projects with environmental or poverty allevia-
regulations, and interventions by external stakeholders tion goals, but the public sector will continue to have a
(especially governments and donors) facilitate transparency major responsibility in these areas.
and accountability to all stakeholders in the innovation
process.
Reform of research and educational organizations
MODULE 1: OVERVIEW 29
NEW DIRECTIONS, PRIORITIES, AND help to align and allocate limited resources to key innovation
REQUIREMENTS FOR INVESTMENT issues (see details in TN 1). IAP 5 describes a regional
approach to coordinate innovation actors in the cassava
As discussed, agricultural innovation may be coordinated by
subsector, particularly researchers. IAP 3 focuses on the
strengthening existing individuals and organizations or by
Foundation for Agricultural Innovation (Fundación para la
setting up entirely new actors and organizations. The com-
Innovación Agraria, FIA), a ministry-affiliated foundation
mon denominator of these approaches is the need to pro-
with independent governance that coordinates and incen-
vide incentives, apply appropriate instruments, and build
tivizes agricultural innovation in Chile.
innovation and organizational capabilities. Because effective
Farmer and nonprofit organizations respond mostly to
collaboration among innovators is so difficult to imple-
their funders, whose interests may not coincide with the
ment, however, it is likely that new types of organizations
needs of local stakeholders, especially if they are marginal-
will need to be supported, as described next.
ized groups like women or landless rural households. It is
important to provide some means for these groups to influ-
Improving governance of the AIS ence the AIS. Possibilities include arrangements for ensur-
A number of factors impinge on the efficiency of gover- ing good governance and accountability and for training
nance in a national innovation system11 in general and an managers and members about their respective roles in their
AIS in particular—in other words, on the extent to which organizations and in the AIS. It is also important to keep
policy processes have the greatest effect with a given use of external interventions in NGOs and civil society organiza-
resources (OECD 2005). The evidence indicates that effi- tions to a minimum, allowing them to evolve as needed.
cient governance depends on certain qualities, which
include the following:
The rise of networks
■ Legitimacy. The policy actors and approaches adopted in TN 2 in this module examines the nature and dynamics of
policy processes have to be appropriate and widely innovation networks, which are becoming more prevalent
accepted for the tasks at hand. as the complexity of innovations grows and rapid economic
■ Coherence. The strands of innovation policy and associ- and technological change forces agents to innovate at a
ated policy instruments must fit together. faster pace. Innovation networks have developed important
■ Stability. Innovation requires sufficiently stable frame- technical, commercial, and organizational innovations that
work conditions, institutions, and policy. have had major economic and social impacts. IAP 1 reviews
■ Adaptive ability. As the environment for innovation and the emergence and evolution of the innovation networks
innovation itself keeps evolving, governance actors need that developed no-till technologies for small-scale farmers
to be able to adapt. in South America and Ghana. Where they have been
■ Ability to steer and give direction. A related capability is adopted widely, these technologies have increased farmers’
the governance system’s ability to provide direction to incomes, reduced food insecurity, diminished labor require-
actors and steer the innovation system as a whole. This ments for the production of staples, allowed poor rural
capacity requires commitment and leadership by policy households to engage in new income-generating activities,
makers at the highest level. and enhanced the sustainability of agriculture in marginal
and well-endowed areas. Although programs to diffuse no-
Governance of the AIS can be improved by creating formal till have been documented in more than 60 countries, mas-
but effective spaces for dialogue at different levels of the AIS sive adoption has occurred only in the handful of regions
(local, sectoral, and national), building actors’ organizations where diverse actors formed innovation networks to
and their capabilities, and improving formal and informal develop organizational and technical innovations adapted
regulations that reduce transaction costs (such as intellectual to local conditions.
property rights regimes, the judiciary system, customs, and
markets). At higher levels of the AIS, investment is needed to
Innovation brokers: promising, but
establish and strengthen effective and responsive coordinat-
challenging to implement
ing bodies for agricultural innovation, such as innovation
councils and subsector-specific bodies that can contribute to Innovation brokers can play a valuable role in an AIS. Sev-
collective identification of opportunities and challenges and eral types have evolved, but few have survived without
MODULE 1: OVERVIEW 31
academic salaries that exceed civil servants’ salaries, and it is dynamics of innovation. Not only does every AIS have
challenging to hire good, experienced professionals to work many actors with differing goals, but the outcomes of their
under difficult conditions (Davis, Ekboir, and Spielman formal or informal cooperation may not appear until
2008).13 In response to these challenges, many countries have many years have passed. Another issue in assessing out-
created new public organizations with different conditions comes is that monitoring and evaluation can be used for
and adequate working resources. Alternatively, investments different, often conflicting, purposes, like learning and
could create the conditions to induce the best employees of accountability.
existing organizations to participate in innovation networks Although it is difficult to define valid indicators for mon-
regardless of their institutional association. Another major itoring organizational innovations and their impacts, two
problem that hampers efforts to build capacity for coordina- principles are valuable to consider. First, the monitoring sys-
tion in developing countries is the frequent rotation of capa- tem should be a learning tool. When a project is defined, sev-
ble civil servants. A major effort should be made to build the eral critical assumptions are made, representing an explicit
capabilities of nonpublic organizations, including political or implicit theory of how stakeholders’ behaviors are
parties, private firms, and civil society and farmer organiza- expected to change over the project’s life. The monitoring
tions, so that they can influence the policy dialogue despite system should be designed to (1) test these assumptions
changes in government. early in the project’s life and adjust the interventions if the
assumptions are proved wrong, (2) identify unforeseen
problems or opportunities as early as possible in the pro-
Organizing around a common vision of major issues
ject’s life (Spitzer 2007), and (3) measure changes in stake-
Coordination is facilitated when potential partners share a holders’ behaviors and provide feedback to stakeholders so
common vision of their problems and opportunities. This that they can learn faster.
vision can be created through foresight exercises, studies Second, many indicators, especially those intended to
and consultancies, gathering and processing of technologi- measure ill-defined processes such as organizational
cal and market intelligence, sectoral dialogues, and inter- innovations, cannot be measured quantitatively. In such
ministerial committees. Because the common vision needs cases, qualitative indicators, such as stakeholders’ opin-
to be updated in response to technical, social, and economic ions, are appropriate measures that can be tracked with
change, these activities must be implemented periodically specially designed techniques (such as Likert or rating
and include a broad array of stakeholders, not just those scales).
directly linked to the processes being analyzed (Skarzynski The monitoring system should also cover at least four
and Gibson 2008). areas:
Source: Authors.
MODULE 1: OVERVIEW 33
T H E M AT I C N O T E 1
34
Despite their presence, national innovation councils and ■ Coordinate the development of a strategic vision for
agricultural research councils rarely operate as true agricul- agricultural innovation.3
tural innovation organizations or councils, with a mandate to ■ Coordinate and formulate agricultural innovation pol-
coordinate and prioritize investments in agricultural inno- icy, which will be increasingly integrated into general
vation at the highest level. This thematic note discusses science-innovation policy.
measures that enable coordination processes to improve, ■ Link agricultural innovation to broader agricultural pol-
adapt to changing circumstances, and rely on the growing icy and science-innovation discussions.
array of stakeholders to improve the governance and impact ■ Continue to contribute to the development of a strategic
of agricultural research and innovation. It begins by review- vision of the agricultural sector.
ing the characteristics and norms shaping a “true” organiza- ■ Coordinate and design agricultural innovation priorities
tion for national coordination and governance of research and agendas.
and innovation (mandate and management structure, ■ Coordinate the division of labor and channeling of
resources, and operating practices and values). The poten- funds4 to priority innovation areas.
tial benefits of such an organization, the policy issues that ■ Monitor and evaluate innovation programs and their
impinge on its successful operation, and the many lessons impact.
emerging from previous efforts are all discussed in the sec- ■ Promote collaboration and exchanges among the various
tions that follow. parts of the innovation system, including external
linkages.
INVESTMENT NEEDED
Ideally, innovation policy making, innovation financing,
An organization to foster national (sectoral) coordination and implementation are separate functions. Agricultural
and governance of agricultural innovation would be nation- innovation councils or committees should not be responsi-
ally mandated but independently governed. The general ble for executing innovation programs, which is the task of
outlines of the mandate, governance structure, activities, science, technology, and innovation organizations.5
resources, and practices of an effective national coordinat-
ing organization are presented next to provide an idea of the
Funding, infrastructure, and capacities
kinds of investment needed.
Formal, dedicated structures with set agendas do not in
themselves guarantee effective coordination of—and action
Organization and mandate
by—actors. At a minimum, coordinating organizations will
The coordinating organization would be formal and inde- need operating funds, physical infrastructure, and commu-
pendently governed and managed as defined by its bylaws. nications infrastructure (ICTs, for example) to enable trans-
The effectiveness, legitimacy, relevance of, and confidence in parent and open communication and support effective
a coordinating organization depend on how effectively it coordination and governance. Coordinating organizations
reaches out to stakeholders from diverse areas of the econ- will also need to build capacity among actors and encourage
omy. The composition of the organization should reflect the them to address issues collectively. Box 1.9 summarizes the
diversity of its stakeholders. The range of stakeholders in capacities and skills needed for innovation coordination
matters of agricultural policy such as innovation is likely to and governance to be effective at a higher level.
be very wide, including farmers and other actors associated
with agricultural innovation (research, education, extension,
Operational practices
and farmer organizations; private firms; and NGOs), rural
territories, and consumers. Representatives from outside the The practices of an organization that coordinates national
agricultural sector can add diversity and value to discussions. agricultural innovation will be guided by such values as
All should have a voice and be included in decision-making transparency, responsiveness, accountability, consensus, and
concerning agricultural innovation strategies and programs. coherence within and between the organization’s activities.
A skilled management team (a secretariat, for example) Transparency is achieved if all information regarding
would execute the activities identified by the organization’s decisions on funding, priorities, and operations is open and
board. A typical mandate and set of activities would be the freely available. This openness implies that central and
following: regional governments and agricultural development agents
Governance capabilities are defined as the ability to and beyond their policy field—which requires skills
in facilitation, negotiation, and consensus-building.
■ Recognize system characteristics (strengths, weak- ■ Implement these policies—which requires policy
nesses, problems, development potential)—which capacity.
requires facilitation and analytical skills. ■ Learn from previous experience (such as evaluation
■ Define the focus and the topics for political action results)—which requires learning, intelligence, and
(agenda setting)—which requires skills in commu- accountability.
nication and consensus-building. ■ Make adjustments over the complete policy cycle.
■ Encourage diverse players (through consultation
and participation) to coordinate their activities in
Source: Adapted from Ohler et al. 2005.
will actively communicate and deliver key messages to focus on their own clearly defined share of the work. Coher-
stakeholders about what they do and the decisions they take. ence requires strong and effective leadership to ensure that
They should use language that is accessible to the general roles and tasks are articulated, understood, and shared as
public. Openness also implies that potential beneficiaries agreed (Hartwich, Alexaki, and Baptista 2007).
such as farmers and processors have equal access to infor- Australia has developed a multistakeholder, multidisci-
mation and funding opportunities (Hartwich, Alexaki, and plinary agricultural research and development council with
Baptista 2007). a focus on agricultural innovation (box 1.10). Chile’s FIA
Those who govern organizations and societies, as well as plays the roles of innovation coordinator, promoter of inno-
the institutions and processes they establish, must be vation, and technological broker, interacting with several
responsive to stakeholders. They must prove in some way actors in the AIS, including farmers, private firms, financial
that they are acting in response to stakeholders’ priorities institutions, technological institutes, and universities (IAP
and generating outputs that meet their needs. Accountabil- 3). Despite Chile’s competitiveness and innovativeness, its
ity means that the organization will be fiscally responsible agricultural sector currently is not fully aligned with the rest
and use efficient mechanisms to avoid corruption. Regular of the national innovation system and associated policy
reporting on the efficient and effective use of project and coordination.
program funds, along with evaluations of outputs and
impacts, will help to prove that funds are used in the best
POTENTIAL BENEFITS
and most correct way. In complex innovation systems, many
actors are involved in setting priorities and using funds, but The reasons commonly cited for AIS actors to interact and
generally the agents that disburse the funds are held address issues collectively include improved identification
accountable (Hartwich, Alexaki, and Baptista 2007). of opportunities and challenges related to innovation, better
Differing interests need to be taken into account to bal- leveraging of human and capital resources, better learning
ance regional and subsectoral development, and the institu- and information sharing, improved implementation and
tions involved in agricultural innovation need to reach a results, and economic benefits. Coordination may also
broad consensus on which tasks are of general interest and improve the design and implementation of innovation poli-
who will play what role in those tasks. Now that the range of cies. Stronger coordination induces all actors, especially
tasks required to achieve innovation-led growth in agricul- public research and extension organizations, to be more
ture has grown so large, the need for coherence among those aware of and responsive to the needs and concerns of other
tasks has become more pronounced. Coherence aids in actors, especially resource-poor households. More actors in
coordinating and forming critical masses for innovation, the innovation system can voice their needs and concerns
and it also enables innovating agents to be competent—to in the process of designing and implementing innovation
Since 1994, the Government of Australia has developed Fisheries, and Forestry to be the government’s inde-
rural research and development priorities that reflect pendent, strategic advisory body on rural research and
the national understanding of critical needs for invest- development. Its principal goal is to provide high-level
ment in agricultural, fisheries, forestry, and food indus- advice and coordination to improve the targeting and
try research and development. A shared approach to effectiveness of government investments in rural
priority setting among state and territory governments, research and development. The Council’s 10 members
industry, and research funders and providers enables represent research, academia, farmers, and the private
issues of common concern to be explored in a coordi- sector. The Council works closely with RDCs, industry,
nated, cost-effective way. research providers, state and territory jurisdictions, and
The priorities complement national research priori- government agencies to strengthen rural research and
ties and guide Australia’s Rural Research and Develop- development through improved collaboration, facilita-
ment Corporations and Companies (RDCs). As the tion, and prioritization of investment and performance
government’s primary vehicle for funding rural inno- measurement and reporting.
vation, RDCs are partnerships between government Given its recent establishment, the council’s effec-
and industry, created to share funding, strategic plan- tiveness has yet to be rigorously evaluated. Even so, the
ning, and investment in research and development and enhanced focus on research and development at the
the subsequent adoption of outputs (see TN1 in mod- national level is expected to improve the productivity,
ule 4). The RDCs significantly influence the work of profitability, sustainability, and global competitiveness
research providers and investors in related fields. of Australia’s agricultural, fisheries, forestry, and food
The Rural Research and Development Council was industries, with benefits for individual rural businesses,
appointed in 2009 by the Minister for Agriculture, the environment, and the wider community.
Source: Rural Research and Development Council (http://www.daff.gov.au/agriculture-food/innovation/council).
policies, resulting in more inclusive policies and faster diffu- To enhance transparency, it is better for the functions
sion of innovations. of innovation policy making, financing, and program
implementation to reside in different organizations. Pol-
icy making is ideally the mandate of coordination and
POLICY ISSUES
policy-making bodies, such as councils, whereas financ-
The policy issues involved in developing an organization ing is the mandate of ministries and special agencies,
responsible for coordinating agricultural innovation on a leaving the implementation of innovation policy pro-
national level resemble the policy issues that apply to coordi- grams to research-innovation entities such as research
nation more generally. They include policies to promote the organizations, universities, and private companies,
organization’s sustainability and effectiveness and to reflect among others.
the needs of all stakeholders, including marginalized groups. Formal coordinating organizations at the national level
Beyond the creation of formal coordinating bodies, may be set up or facilitated by public, private, or civil soci-
effective coordination of stakeholders depends on stable ety actors. In practice, the public sector often takes the lead.
financing and incentives for participating organizations and It is essentially in the public interest to guarantee that
employees. Careful attention must be paid to developing society’s resources are allocated to priority issues, identified
stakeholders’ capacity to contribute to shared goals, influ- collectively.
ence the organizations they participate in, and benefit from
their participation in ways that encourage them to continue
LESSONS LEARNED AND RECOMMENDATIONS
participating. Effective and relevant coordinating organiza-
FOR PRACTITIONERS
tions will include a wide swathe of stakeholders, differing by
geographical location, subsector, gender, and type of insti- The lessons and recommendations emerging to date center
tution (public, private, and civil society). on three commonly applied modes of coordinating
Box 1.11 Structure and Mandate of the Indian Council of Agricultural Research
The Indian Council of Agricultural Research (ICAR), agroforestry, animal husbandry, fisheries, home sci-
established in 1929, is an autonomous organization ence, and allied sciences.
under the Ministry of Agriculture. With 97 institutes ■ Act as a clearinghouse of research and general infor-
and 47 agricultural universities, ICAR is the national mation in its areas of competence through its publi-
apex body for coordinating, guiding, and managing cations and information system.
research and education in agriculture. The members ■ Institute and promote transfer of technology
come entirely from the public sector. ICAR has two programs.
bodies: (1) the General Body, the supreme authority of ■ Provide, undertake, and promote consultancy
ICAR, headed by the Minister of Agriculture and (2) services.
the Governing Body, the chief executive and decision- ■ Look into the problems relating to broader areas of
making authority of ICAR, headed by the Director- rural development concerning agriculture, including
General, ICAR. The correspondingly broad mandate of postharvest technology, by developing cooperative
ICAR includes: programs with other organizations such as the
Indian Council of Social Science Research, Council
■ Plan, undertake, aid, promote, and coordinate edu- of Scientific and Industrial Research, Bhabha Atomic
cation, research and their application in agriculture, Research Centre, and the universities.
Source: http://www.icar.org.in/en/aboutus.htm; World Bank 2006c.
Producers have a significant role in the financing, gov- systems. Meetings are open to all producers interested
ernance, and research priority setting of Uruguay’s in attending, as well as other stakeholders (extension-
main agricultural research institute, the Instituto ists, representatives from industry, and policy makers).
Nacional de Investigación Agropecuaria (INIA). For- The working groups have become a very useful mecha-
mal mechanisms foster producers’ participation in nism for formally incorporating inputs for research
identifying, prioritizing, and planning research: Pro- planning, monitoring, and evaluation.
ducers are active members of the board of directors, INIA also has close links with its clients through a
regional advisory councils, and working groups. They specialized unit for diffusing technology. For instance,
are involved in planning primarily through wide par- INIA has a long-term agreement with a producer asso-
ticipation in identifying and analyzing problems. Spe- ciation to demonstrate new intensive cropping and
cific mechanisms to articulate producers’ demands livestock production technologies. The arrangement
and transfer technology have been developed as well, has validated promising technologies at the commer-
such as experimental units for validation and demon- cial level, facilitating their transfer and providing feed-
stration. back to reorient research, and it has been expanded to
The five regional advisory councils, set up in 1990, support new technological developments in extensive
act as “antennae” for capturing local demands in the livestock production.
area served by each experiment station. The councils Round tables are a third means of incorporating
are an important forum for regular exchanges of views producers’ demands into national research programs.
and close contacts between producers and INIA staff. Composed of specialists from INIA, other public
INIA also created working groups for major commodi- research institutes, the university faculty of agronomy,
ties at each regional experiment station to strengthen and representatives from different stages in the agroin-
farmers’ role in guiding commodity research. In these dustrial chain (from producers to consumers), the
groups, INIA staff and farmers discuss research plans round tables operate as self-directed work groups to
and results for specific commodities and production identify relevant vertically integrated problems.
Competitive funds can contribute positively to gover- Competitive funds can also lead to governance
nance, leading to problems:
■ Improved identification and prioritization of agricul- ■ By lacking sufficient objectivity. Particularly in small
tural research needs, particularly with the more spe- science communities, it can be very difficult to orga-
cific, competitive funds. (Note that general science nize impartial reviews of research project proposals.
and technology funds, in contrast, usually do not A solution may be to mobilize foreign reviewers, but
prioritize research needs beforehand. Because these this alternative remains quite costly to organize and
funds leave much of the initiative of selecting manage without good access to ICTs.
research topics to individual researchers, the agri- ■ By using a limited time horizon and funding only oper-
cultural research agenda may not take into account ational costs. Competitive science and technology
the needs of AIS actors or emerging opportunities funding schemes, which usually fund only short-term
for innovation.) projects (two to four years), are not necessarily the
■ Improved formulation of research project proposals. best instrument for funding long-term agricultural
The introduction of competitive funding schemes research activities, such as plant breeding and strategic
requires a strong project culture within agricultural research. The same problem arises because most proj-
research and technology transfer agencies; some ect-based funds do not finance researchers’ salaries or
take time to adjust to the new rules and regulations. investments in equipment and infrastructure.
Universities seem to have more experience with ■ By being relatively inflexible in adjusting project pro-
competitive funding schemes. posals and implementation. Strict adherence to selec-
■ More transparent selection of agricultural research tion transparency and procedures can jeopardize
projects. All project proposals are reviewed by exter- efficient selection and implementation of agricul-
nal reviewers. Research projects that are approved tural innovation projects. Simple mistakes in budg-
and selected for financing are listed publicly. Many ets or incomplete documentation sometimes result
competitive funds have project databases that can be in outright rejection of project proposals.
consulted online. ■ By not fitting within existing bureaucratic procedures.
■ Improved monitoring and evaluation (M&E) of Government agencies often find it extremely diffi-
project implementation. In most agricultural cult to administer a research grant within their
research and technology transfer agencies, M&E bureaucratic procedures. For example, resources
has long been a weak spot. Internal reporting often cannot be transferred to the next financial
mechanisms are rare, and sanctions are seldom year. A way to avoid this problem is to administer
applied for failure to report on progress. Compet- the research grant through a nonprofit foundation.
itive funding schemes, with their more stringent Although this procedure adds to the overall admin-
reporting requirements, have introduced innova- istrative costs of an innovation project, timely and
tions in M&E. undisrupted disbursement of research resources
may create some savings as well. In most countries,
this legal construct is widely accepted.
Source: World Bank 2006b.
Through Bioconnect, all actors in the organic agricul- suggest that this model can induce more interactive and
ture value chain, organized by product workgroups, have inclusive ways of working, given that the interaction of
decision-making authority in research funding, utilizing researchers and users is built into the system and is a pre-
public funds from the Ministry of Agriculture. Early results requisite for obtaining funding.
Bioconnect is a new type of research “council” for market developments in an effort to ensure that
organic agriculture, one that is able to induce an inclu- research innovations have an impact.
sive way of working. A knowledge manager is the group’s facilitator, stream-
Supportive government policy. To support knowledge lining information flows and mediating between actor
development and exchange in organic agriculture, the groups. A theme coordinator informs researchers about
government allocates the subsector 10 percent of its workgroup results to ensure that proposals correspond to
budget for policy support research and statutory government funding guidelines. The knowledge man-
research tasks (€9.6 million in 2008). In 2005, the gov- agers embody the management of the network; a Knowl-
ernment delegated responsibility for setting the edge Committee oversees the broad research themes and
research agenda for organic agriculture to stakeholders seeks to maintain consistency throughout the program.
by creating Bioconnect. The goal is to determine Early results and challenges. Despite the reluctance of
whether delegating research governance to networks in some researchers, the model does initiate learning about
which users allocate research funding can work for more interactive ways of working. Similarly, despite their
other areas of publicly funded, applied agricultural strong commitment to users’ interests, delegation systems
research. Farmer-driven research planning exists in the also allow government to determine the macro priorities
Netherlands but has not always forged broader linkages within which users can maneuver. As an intermediary in
within the innovation system. all aspects of the research process, from priority setting to
Bioconnect. Through product workgroups (dairy, disseminating results, Bioconnect occupies a pivotal but
glass house horticulture, and so on), the users of neutral position—one that is not easy to maintain. The
research (farmers, agrifood supply and processing position of such an intermediary depends on whether it
companies, civic advocacy organizations representing promotes institutional learning with regard to the new
consumers) unite with researchers, consultants, and roles of the actors involved and helps their goals to con-
policy makers to determine how to use public research verge. Bioconnect must constantly balance the interests
funding. Working within themes established by the and gain the trust of the range of stakeholders for whom
government, workgroups propose topics based on it mediates and on whom it depends for its resources
broad demand among their constituencies. They dis- (social and operating capital). As part of this balancing
cuss and prioritize the topics with research coordina- act, Bioconnect has to convince research contractors of
tors to align research with sector needs. Research is the value of setting research priorities through a single,
contracted on the basis of proposals, which are selected multiactor platform; balance the strategic interests of the
through a review by the users and funding body and research contractors; and urge government to achieve
not solely through peer reviews of scientific merit. Bio- cohesion across ministry directorates with respect to
connect facilitates the participatory research arising budgets, macro priorities, and processes for monitoring
from the priority setting and links it to legislative and the network.
Source: Klerkx, Hall, and Leeuwis 2009; Klerkx and Leeuwis 2008.
44
Box 1.15 The Creation and Consolidation of Papa Andina
Since 1998, Papa Andina has fostered agronomic, techni- scale farmers, agricultural service providers, and mar-
cal, and commercial innovations in Andean potato- ket chain actors (including chefs, supermarkets, and
based food systems to improve farmers’ access to more potato processors). In each participating country, Papa
dynamic and lucrative markets. The network, which Andina coordinates its activities with a “strategic part-
reaches about 4,000 poor rural households and includes ner” that assumes a leadership and coordinating role
about 30 partners in Bolivia, Ecuador, and Peru, pursues in market chain innovation: PROINPA Foundation in
several strategies: increasing demand for native and Bolivia, the INCOPA Project in Peru, and the National
commercial potato varieties, adding value to potatoes, Potato Program of INIAP in Ecuador. Although the
improving contractual arrangements, and facilitating approaches to developing the networks are common
access to commercial information. Financed by the Swiss (the participatory market chain approach and stake-
Agency for Development and Cooperation and other holder platforms), different organizational arrange-
donors, Papa Andina is hosted by the International ments, involving different partners and interaction
Potato Center (CIP). patterns, emerged in each project implemented by
Based on a participatory method for stimulating Papa Andina.
agricultural innovation (Rapid Appraisal of Agricul- Papa Andina’s success resulted largely from the explo-
tural Knowledge Systems), in 2000 CIP researchers ration of alternatives to reaching its goal (poverty allevi-
started to enhance innovation through a participatory ation), the involvement of different actors in developing
market chain approach and stakeholder platforms. and testing innovations, and the continued support of
These efforts bring researchers together with small- its funders.
private and public firms, researchers, extension agents, many forms and operating modes that innovation networks
government agencies, and donors. Innovation networks can adopt and the potential problems that can render net-
differ in their origins and their approaches to developing works ineffective or dependent on external funding.
and diffusing innovations. For example, private firms or
farmers catalyzed no-till networks in South America and
INVESTMENT NEEDED
relied on farmer associations to diffuse the technology; in
contrast, a private firm and NGO catalyzed Ghana’s no-till Because of their informal structure and frequent changes,
network but relied heavily on a PhD student and traditional innovation networks need flexible and sustained support,
public extension methods (Ekboir 2002). often from innovation brokers. This flexibility does not fit
Innovation networks differ from farmer organizations in easily into the usual requirements of publicly funded proj-
that farmer organizations have a homogeneous member- ects, especially because it is difficult at first to define clear
ship and more formal, stable relations. Innovation networks objectives and the steps that will deliver the innovation. In
differ from value chains in that the latter are more stable, are contrast, the private sector has long recognized the special
focused on delivering a product or service, and are coordi- nature of innovation and created flexible approaches to sup-
nated by a central actor (such as a supermarket) that organ- port it, including venture and angel funds and actions to
izes the operation (TN 3). develop capabilities that favor innovation. In recent years,
This thematic note describes strategies to foster the some governments, international donors, and multilateral
emergence of innovation networks or strengthen existing funding agencies have started to support innovation proj-
networks. It discusses the benefits and policy issues involved, ects that include financing for innovation networks—either
particularly the need to strike a balance in how the public to support the emergence of new networks or to strengthen
and private sector participate. The examples highlight the existing ones.
Box 1.16 illustrates some of the benefits that an innova- The sustainability of innovation networks depends on many
tion network can yield, using the example of local and internal and external factors. Internal factors include the
No-till agriculture is thought to offer environmental ■ No-till methods were adopted rapidly in irrigated
and economic advantages for rice-wheat production rice-wheat systems. No-till was used on about
systems in South Asia’s Indo-Gangetic Plains. Farm- 820,000 hectares by 2003–04.
ers in Pakistan, India, Nepal, and Bangladesh have ■ The number of small factories making no-till equip-
rapidly adopted the practices since 2000. No-till ment grew. By 2003, an estimated 15,700 seeders had
approaches used in other parts of the world were been sold in Haryana and Punjab, India.
tested and modified to suit local conditions by a ■ Profits for small-scale farmers increased, pollution
research consortium led by the International Maize decreased, and water savings increased. Seasonal
and Wheat Improvement Center (CIMMYT) and the savings in diesel for land preparation were estimated
Indian Council on Agricultural Research. The tech- in the range of 15–60 liters per hectare, representing
nology did not take hold until researchers and agri- a 60–90 percent savings. Water savings in wheat pro-
cultural engineers from abroad began working with duction were estimated at 20–35 percent and prof-
local, small-scale manufacturers to design prototype itability increased by 46 percent.
no-till seeders. Particularly important were several ■ Local manufacturers gained access to information
exchanges of prototypes between small-scale manu- from different countries in the form of original,
facturers from Bolivia and India. The exchanges were nonadapted equipment.
mediated by CIMMYT, which worked in both coun- ■ Equipment was more rapidly adapted to smallhold-
tries with local artisans and handled the logistics of ers’ conditions.
importing the prototypes. Several modifications were ■ Technical and scientific information was generated.
made to the original design, and manufacturers now ■ Networks of farmers, equipment manufacturers,
produce and distribute a wide array of the new seed- and researchers from international centers and state
ers. Results of the interaction between local and for- universities were consolidated.
eign actors included: ■ The impact of CIMMYT’s actions was magnified.
■ A market for planting services emerged.
Source: Ekboir 2002; World Bank 2006; Laxmi, Erenstein, and Gupta 2007.
Note: CIMMYT = Centro Internacional de Mejoramiento de Maíz y Trigo.
In the early 1980s, a researcher from Mexico’s national dated that their methodology be used in all publicly
agricultural research organization crossbred Zebu cat- supported extension activities. They also decided that
tle with European breeds in his ranch. The neighbors, GGAVATTs should have priority in accessing support
interested in the new animals, soon organized a group programs. The number of GGAVATTs exploded. Most
to discuss technology issues, such as breeding tech- of the new groups were created by technicians hired to
niques and pasture management. Based on experiences do so, and they did not respond to farmers’ goals as
in Argentina with AACREA, an organization of farmer the original groups had done. Farmers joined chiefly
groups that conduct on-farm applied research and to gain easier access to public resources. Only a few of
share the results with one another, a few researchers the new GGAVATTs improved members’ ranching
promoted the creation of similar groups of ranchers in technologies. Most faded away when government sup-
the same region of Mexico. The groups started to port ended.
exchange information and work on validating tech- This experience contains two important lessons for
nologies. The research organization’s authorities supporting innovation networks. First, innovation net-
strongly objected to these actions, claiming that they works emerge when different actors find a common
were extension activities and thus beyond the man- interest in exploring ways to improve a product or a
date for national agricultural research. Researchers process. The spontaneous convergence of interests is
responded by meeting on Saturdays to avoid being difficult, however, and facilitating convergence can
accused of using their working hours for unauthorized greatly accelerate the emergence of networks. Second,
activities. By the late 1990s, the groups—GGAVATTS— facilitation should not be coupled with the disburse-
had developed and diffused several important innova- ment of other subsidies. Otherwise farmers join to
tions in their region. In the early 2000s, the federal receive the subsidies and not because they are truly
authorities acknowledged their performance and man- interested in innovating.
innovation networks, but often their approach follows a approaches for natural resource management (such as water
traditional, linear vision of science. catchment in arid regions) or the development of market
niches for poor households (TN 3). The problems and the
potential solutions that innovation processes will explore
LESSONS LEARNED are rarely well defined at the beginning. Because of their vol-
Experiences with innovation networks that develop spon- untary nature, innovation networks have the flexibility to
taneously and those that are developed deliberately offer adapt to emerging needs and opportunities, but this respon-
useful lessons about when networks are most effective, who siveness can depend on the availability of flexible funding
joins, and what they accomplish. Other lessons relate to and on enabling all actors in the AIS (especially public
how networks can be catalyzed and otherwise motivated, researchers and extension agents) to participate.
how they can be consolidated, and how they can avoid
depending on external funding agencies.
A network’s origins greatly influence who joins
and how it innovates
When are innovation networks effective?
Innovation networks can emerge because of the interests of
Innovation networks are particularly effective for develop- one person—a farmer, a private firm, or a researcher (as in
ing and diffusing technical and commercial innovations box 1.17)—or because it is part of a research program, like
that deal with ill-defined or complex issues, like new the Ghanaian no-till equipment network (box 1.23 in IAP 1).
52
technologies are generated mostly in developed countries the operation of these chains in three countries where they
and imposed by the leading agent. have attained different levels of development.
High-value products are commercialized through four The fourth type of modern marketing chain comprises
types of modern marketing chain. The first type includes niche markets in their many forms. Examples include the
traditional export crops produced on plantations, such as following:
coffee, tea, and bananas, and marketed mainly by large
companies and traditional agroprocessors. Most innova- ■ Smallholders close to a large city, who sell directly to con-
tions in these marketing chains are technical, because the sumers in a process similar to the “locavore” movement
organizational aspects have already been resolved. In a few in developed countries.
cases, such as the Kenya Tea Development Agency (TN 4, ■ Development projects that create new markets for tradi-
box 1.22) or the Colombian Coffee Growers’ Federation,1 tional products or new products based on traditional
small-scale farmers have created large, successful organiza- crops (Papa Andina is an example for Andean potatoes;
tions that compete internationally. see module 7, IAP 3, and module 4, TN 4.
The second type of modern marketing chain, which sup- ■ The Fair Trade movement, which caters to specific pop-
plies developed countries with fresh and processed fruits ulation segments in developed countries.2
and vegetables, fish and fish products, meats, nuts, spices,
and flowers, started in the early 1980s following trade Some niches are more demanding than others in terms
liberalization and improvements in logistics. Traders and of quality and commercial requirements; for example,
agroprocessors usually work with large-scale farmers under wealthy consumers in nearby cities are less demanding than
different associative forms, although occasionally they pro- consumers from developed countries who buy in Fair Trade
vide financing and technical advice to smallholders. Both shops. Participation in these markets depends on farmers’
technical and organizational innovations are important in capacity to meet their requirements. Although niche mar-
this chain, and local actors have to develop strong innova- kets have had important impacts on local communities,
tion capabilities to remain competitive in global markets. they cannot expand beyond a certain size without becoming
The third type of modern marketing chain was triggered commoditized. For this reason, they can make only a limited
by the expansion of fast-food chains and supermarkets that contribution to alleviating poverty.
supply mostly domestic markets, although increasingly they
reach foreign markets. This type of chain is a product of the
INVESTMENT NEEDED
internationalization of wholesaling and logistics, consolida-
tion of rural and urban wholesale markets, emergence of Investments to support modern marketing chains should
specialized and dedicated wholesalers who organize pro- support the development of organizational capabilities for
curement, growth in vertical coordination, and the intro- innovation along the chain (especially among farmers),
duction of private grades and standards. The better-off coordinate actors operating in the chain, and create the
smallholders tend to sell through this channel (sellers in tra- enabling conditions for innovation. It is important to rec-
ditional channels tend to be less well off); they have more ognize that although modern marketing chains are growing,
capital (especially irrigation facilities), easier access to traditional wholesale and wet markets will probably retain
credit, and greater specialization in commercial horticulture an important share of high-value agricultural produce and
(Reardon et al. 2009). Actors in these chains use sophisti- remain the main marketing option for most smallholders.
cated production packages, but the most important innova- As modern marketing chains become increasingly concen-
tions are organizational: coordinating production by large trated, it will be harder for smallholders and farmer organi-
numbers of farmers of products of consistently high quality zations to access them directly. For this reason, support to
(frequently highly perishable) and delivering them to modern marketing chains should be accompanied by pro-
numerous distant retail sales points (increasingly abroad). grams to help the farmers who are excluded.
The same products that are sold in modern marketing
chains are also sold in traditional wet and wholesale mar-
Supporting the expansion of modern marketing
kets; the difference is that the latter usually handle products
chains through targeted investments
of mixed quality and operate with spot prices, whereas the
modern chains must adhere to high quality standards, and Private actors make most of the investments to develop
deliveries and prices are set in advance. Box 1.18 describes modern marketing chains, but targeted public investments
Mexico. Supermarket procurement systems have moved and transaction costs to a point where they become
from traditional wholesale markets to (1) networks competitive. Modern marketing chains increasingly are
based on centralized distribution centers; (2) emerging supplied by a new type of “middle-class” farmer emerg-
regional networks; (3) sourcing from a combination of ing between large-scale export farmers and small-scale,
specialized wholesalers (which are increasingly backward traditional market farmers. These middle-class farmers
integrated into production zones), wholesaler/growers, buy traditional farms and convert pasture and grain
and direct relations with grower/packer/shippers; fields to horticultural crops grown with modern pro-
and (4) new institutions, such as emerging private duction techniques.
quality standards and implicit preferred supplier (quasi- China. The expansion of supermarkets has been
contractual) relations. These trends make it very diffi- driven by factors common to other developing
cult for most smallholder and even traditional large countries—urbanization, income growth, and liberaliza-
wholesalers and medium-scale growers to sell to super- tion of foreign direct investment in retailing—as well as
markets. Supplying directly is increasingly the domain of a number of China-specific policies, such as government
(1) the large grower/packer/shipper, (2) the backward- investment in the sector and policies promoting conver-
integrated, large, specialized wholesaler, and (3) to a cer- sion of wet markets to supermarkets. A feature unique to
tain extent the wholesaler and farm company managing China is that poorer households produce the largest
contract farming. share of horticultural crops; that share is growing,
Kenya. Supermarkets have a relatively small but whereas the share of richer households is falling. At the
growing share of urban markets for high-value same time, there is little evidence that modern whole-
products. The leading chains began to modernize salers or supermarkets source produce directly in rural
procurement by creating systems of preferred suppli- communities. Instead, they rely on urban wholesale
ers (farmers and specialized wholesalers) for key markets dominated by small-scale traders; for this rea-
products, centralizing procurement into distribution son, little or no effort is made to impose or monitor
centers, and starting to use private quality standards. quality or safety standards directly among producers.
Smallholders have found it difficult to enter modern Some researchers have reported the incipient emergence
chains because most lack the physical, financial, of features common to more developed procurement
human, and organizational capital to lower production systems, such as dedicated providers.
Sources: Author, based on Reardon et al. 2007; Neven et al. 2009; Wang et al. 2009.
in specific markets and chains can trigger virtuous cycles Another type of investment is the facilitation of lead
of investment (IAP 3). These investments may support the farmer–outgrower schemes. Lead farmers have proven their
formation of farmer groups, finance infrastructure and ability to produce to the standards required by modern
specialized equipment, build capabilities for farmers and chains. Supermarkets or specialized wholesalers encourage
their organizations to meet the standards required by pri- lead farmers to organize their neighbors to produce to
vate companies, and help provide market intelligence. For the same standards; the only incentive the buyers offer is
example, a guaranteed market opportunity. For a fee (usually a per-
centage of the final sales), lead farmers provide various
Sam’s Club required cooled, packed, and delivered raspber-
services that may include production planning, technical
ries by a group of small farmers in Michoacán (Mexico).
assistance, access to inputs, market intelligence, sorting and
SEDAGRO/Michoacán [the state department for rural devel-
opment] discovered exactly what those requirements are in
packing, transportation to market, and financial adminis-
joint meetings with the chain and the group, and then pro- tration. Lead farmer programs require less external support
vided efficient and targeted help to the group to make those than support for farmer organizations, but the farmers
investments. The group then entered the business relationship themselves have to make higher investments (Reardon et al.
and that provided further capital to make investments on their 2009; Neven et al. 2009). Investments to support these pro-
own. [Reardon et al. 2007, 35] grams include financing farm equipment and capacity
Box 1.19 Sourcing Practices Used by Mexican Supermarkets Reveal Experimentation with
Contractual Arrangements and Types of Growers
Mexican supermarkets have pursued a number of combination of large- and small-scale farmers, or only
strategies to source frozen vegetables. Exporters have with smallholders through resource-provision con-
used backward integration, relying on their own farms, tracts. A multinational working with large- and small-
for “high care” products demanding traceability. Some scale farmers had seven contract types, ranging from
supermarkets adopted intense, highly controlled contracts with large-scale farmers under which no
outgrower schemes in which they provided resources resources were provided to contracts with the smallest-
under contracts with small-scale farmers. Others relied scale farmers under which the company provided
on small-scale outgrowers for less-demanding products “specialized inputs and equipment, credit, technical
and market segments requiring less traceability and less assistance, and insurance.” These examples show that
technology, with the company providing only exten- projects should allow considerable latitude in the types
sion services to its outgrowers. Other companies chose of contractual arrangements and organizations that
to contract only with large-scale farmers, with a can be financed.
Source: Author, drawing heavily on Reardon et al. 2009 (quoted text, p. 1722).
59
investments over the long term, have committed leadership, and/or diffuse them (the ecologically oriented Prolin-
and work with specialists in organizational change and nova network is one such organization).1 Other farmer
innovation processes. organizations concentrating on innovation include
For many years, governments and funders favored the farmers and researchers as equal partners. These farmer
creation of cooperatives, but their performance has been organizations use participatory methods to manage the
rather disappointing. Lately, farmers and rural households innovation process and may combine top-down and
have sought alternative organizational arrangements. These bottom-up approaches.
arrangements have had different goals, operate at different ■ Farmer organizations that are service-oriented and net-
levels (local, regional, and national), and include commu- worked, such as Mexico’s Produce Foundations, promote
nity organizations, self-help groups, associations to manage the emergence of local farmer organizations that form
natural resources (such as water user associations), and part of larger networks (IAP 2). Through collective
lobbying associations. According to the capabilities they action and participation in local and national forums,
develop and the type of interactions they establish with they establish partnerships with other actors in the AIS
other actors in the AIS, farmer organizations can be cate- for the provision of services, including research, exten-
gorized into four types: sion, training, credit and savings schemes, lobbying (like
the West Africa Network of Peasant and Agricultural
■ Traditional, commodity-based farmer organizations, Producers’ Organizations),2 or developing value chains
such as the Colombian Coffee Growers’ Federation, (TN 3).
India’s dairy cooperatives, or the Kenya Tea Development
Agency. Input supply, output processing, and marketing
INVESTMENT NEEDED
can be done by the organization or outsourced to private
firms. Less attention goes to facilitating interactions and No recipe exists to create farmer organizations for innovation
cooperation with potential partners in innovation. While (Rondot and Collion 2001). The organizations that carved a
the declared goal is usually the diffusion of technical niche for themselves did so by developing: organizational
innovations, successful commodity-based farmer organ- innovations, such as a clearly articulated purpose, mission,
izations have innovated to coordinate large numbers of and vision; organizational cultures that allowed change;
farmers. These organizations often sponsor their own effective learning routines and heuristics (especially the
research teams. ability to analyze the organization’s needs and to implement
■ Nontraditional, market-oriented farmer organizations plans to address them); strong technical capabilities; skills to
seek to improve market access through collaboration participate in innovation networks, interact with the politi-
with key actors in the marketing chain (supermarkets or cal and economic environment, and mobilize the resources
brokers). Often this kind of farmer organization is cre- to accomplish the organization’s goals; effective and trans-
ated with assistance from NGOs and/or externally parent governance structures (including new incentives)
funded projects (Papa Andina is an example). Innova- and leadership that prevented them from being captured by
tions are viewed as technical, commercial, and social donors, governments, or elites; and active participation of
processes to be addressed through participatory meth- members (Ekboir et al. 2009).
ods. Research capabilities reside in local and foreign uni- Successful farmer organizations develop their own orga-
versities or international research centers. nizational models. Some emerge spontaneously, such as the
■ Innovation-oriented farmer organizations focus on innovation networks that developed no-till agriculture in
developing technical innovations, but they can also Argentina, Bolivia, and Paraguay; others are created by a
develop commercial or organizational innovations or a market actor (a supermarket leading a supply chain, for
combination of all three (a good example, discussed in example), by a coalition of actors (as usually occurs in
IAP 1, is South America’s no-till farmer associations). action-research projects), by outsiders in the framework of
These organizations may be created by farmers, NGOs, a project (Papa Andina), or by public programs (after which
or public programs, and they may use public or private they assumed a life of their own, like Mexico’s Produce
funds. They usually become the coordinating agent of a Foundations). Independent of their origins, farmer organi-
diverse network that includes research institutes, private zations have succeeded when they could adapt their original
firms, and public programs. Some focus mainly on “business plan” to unexpected problems and opportunities.
farmer-developed innovations and seek to improve Adaptation is possible only when farmer organizations have
In rural areas of many developing countries, farmer national agricultural policy debate through telecen-
organizations may be the only organizations on the ters in seven towns and villages, together with local
ground. Because information and communication radio stations. In locations throughout Africa, the
technologies (ICTs) make it easier to speak for and to Participatory Radio Campaigns of Farm Radio
farmers, they can dramatically heighten the capacity for International (a nongovernmental organization)
networking, good governance, collective action, and invite farmers’ participation and respond to their
innovation in producer organizations and agricultural feedback. Text messaging on cheap mobile phones is
cooperatives: proving to be a highly adaptable medium for organ-
izations to mobilize members around specific issues
■ ICTs enhance farmer organizations’ connections and and concerns, acquire resources (information,
governance. ICTs can facilitate the sharing of market credit, and even insurance) to facilitate production
and technical information, help organizations and marketing, and generally become more inte-
attract and retain members, and inform members of grated and visible within the innovation system.
the organization’s activities on their behalf. In Mali, ■ ICTs can foster innovation. As the examples indicate,
Coprokazan (http://www.coprokazan.org), a coop- ICTs can spur farmer organizations to innovate in
erative for female producers of shea butter, comput- how and where they operate, with whom, and why.
erized its operations to reach a wider market online, The use of ICTs can make organizations more effec-
develop more effective training materials for coop tive lobbyists, better at acquiring information or
members, and more generally raise its profile. An services from public and private sources, more effec-
unexpected outcome of using ICTs was that mem- tive participants in markets and value chains, and
bers became more confident in the coop’s gover- more valuable partners in research and development
nance after coop staff started using computers for initiatives (such as initiatives to provide early warn-
routine administration and to develop visual ing of plant and animal diseases).
overviews of yearly accounts and activities. The
well-known capacity of ICTs to streamline adminis- Farmer organizations may be aware of the potential
trative and accounting tasks of all kinds makes them of ICTs but may not necessarily find it easy to acquire
highly useful for administering farmer organiza- and learn to use them. Generally it is governments,
tions. In dairy and coffee cooperatives in India and donors, and nongovernmental organizations (NGOs)
Kenya, for example, farmers believe that automated that have the funds to develop ICT solutions that
measurement and record-keeping systems help benefit farmer organizations. (The software used in the
ensure fair compensation from the cooperative. Indian dairy cooperatives mentioned earlier was
Automated systems have the added advantages of developed through public-private partnerships, for
speeding transactions and reducing spoilage. example; Farm Radio International is an NGO.)
■ ICTs give organizations a stronger collective voice. Another challenge is to sustain the use of ICTs after
High-speed connectivity may still be out of reach in external support ends. Significant costs are usually
many parts of the world, but individual farmers can associated with equipment, maintenance, training, and
still use mobile phones and text messages to “have continuing system development. New technology
their say” on agricultural radio. Feedback about must generate enough additional income for an orga-
services offered by farmer organizations and local nization to cover its ongoing costs, or it must generate
government, when expressed over the airwaves, has enough additional benefits for individual users to be
more influence than comments made in a less willing to pay for it. Finally, although ICTs facilitate
public forum. In Mali’s Sikasso Province, an ambi- communication, it is important to recognize that they
tious project brings farmer organizations into the cannot substitute for building social capital.
Voluntary contributions. The Argentine Association of them under its own brand name. The surplus from
Regional Consortiums for Agricultural Experimenta- these sales was invested in the expansion of the coop-
tion (AACREA) is an apex organization of self-help erative movement in the dairy industry. Today farmers
groups of commercial farmers in Argentina. Each group organize into village-level cooperatives, which in turn
has about 10 members who jointly hire a technical advi- are organized into district-level cooperatives (com-
sor and conduct adaptive research and validation. The prising 400–1,000 primary village cooperatives). The
group also contributes to the apex organization. The district-level cooperatives federate into a state cooper-
latter gathers the information developed by each group ative. At the apex is the National Cooperative Dairy
and shares it among its 1,880 members. This structure Federation, which coordinates marketing for all state
is an example of decentralized experimentation with cooperatives. The cooperatives currently supply about
centralized learning. 70 percent of the processed milk marketed in India
Levies. The Colombian Congress can tax specific and provide a wide range of services to members.
agricultural products to finance programs to support Government programs. The Mexican government
them. A specific law must be enacted for each taxed created a program in 1996 to finance research and
product, and the proceeds can be used only to sup- extension projects through Produce Foundations, civil
port the product’s market chain. The central govern- society organizations in each state that currently also
ment collects the tax. The funds are administered by finance and implement innovation activities. The pres-
a contract between the Ministry of Agriculture and a ence of a foundation in each state makes it possible to
farmer organization of national reach that represents clearly identify local farmers’ needs and foster the
producers of the taxed product. Colombia has 15 emergence of local innovation networks. The Founda-
such taxes. tions set the priorities, decide which projects are
Sales of goods and services. Starting in 1970, India’s funded, and administer the projects; the federal and
National Dairy and Development Board imported state governments audit the use of the funds. See IAP 2
food aid in the form of dairy products and marketed for a detailed discussion.
Source: Author.
Note: AACREA = Asociación Argentina de Consorcios Regionales de Experimentación Agrícola.
voluntary contributions (such as those used in Argentina flow” promoters, and strengthening the policy framework
by AACREA),6 levies (used in many countries, including for innovation. Other instruments introduced recently
Australia and Colombia), sales of goods and services (Kenya include mentoring programs, multistakeholder platforms,
Tea Development Agency and the Indian dairy coopera- knowledge-exchange fairs, and IT platforms to facilitate
tives), and partnerships between the government and civil communications and coordination.
society organizations (such as the Mexican Produce Foun-
dations) (box 1.21).
Adding flexibility to the enabling environment
The Kenya Tea Development Agency (KTDA) was hectares and produced in excess of 700 million kilo-
created soon after independence as a state company to grams of green leaf.
regulate tea production by smallholders, but it repeat- ■ Developing new tea products and opening new mar-
edly demonstrated its capacity to innovate over the kets for them.
years as it evolved into a major corporation owned by ■ Implementing new programs to support its associates
small-scale farmers. It provides production and mar- (affordable credit and input supply, for example).
keting services for members, successfully manages tea ■ Developing strong managerial capabilities.
nurseries and 59 factories, and represents small-scale ■ Developing strong competitive advantages. The
farmers in the Kenya Tea Board. The agency’s innova- agency accounts for 28 percent of Kenya’s exporting
tion capabilities include the following benefits: earnings and is the world’s second-largest exporter
of black tea.
■ Increasing the income of its associated small-scale ■ Adapting its operations and governance in response
farmers. to changes in the socioeconomic environment and
■ Successfully implementing collective action involv- market opportunities.
ing hundreds of thousands of small-scale farmers. In ■ Influencing strategic stakeholders to allow organiza-
1963, tea was cultivated by 19,000 smallholders on tional change.
4,700 hectares, with an annual crop of about 2.8 ■ Partnering with private actors and foreign universi-
million kilograms of green leaf. In 2009, about ties to develop and diffuse sustainable production
400,000 smallholders grew tea for KTDA on 86,000 practices for small-scale farmers.
LESSONS LEARNED
Building capabilities for innovation
The considerable variety of farmer organizations, experi- in farmer organizations
ence with older forms of organization, and new organiza-
In helping farmer organizations develop their capacities to
tional strategies are yielding a number of lessons about
innovate, it is important to focus not only on technical or
farmer organizations and innovation. The sections that fol-
commercial issues such as accounting or crop management
low summarize the conditions that make farmer organiza-
but on developing good governance, creating structures and
tions effective (especially as innovators), including lessons
incentives for innovation, developing external links, and
related to their structure, way of operating, capabilities,
building strong leadership. Capacity-building activities may
financing, and the environment in which they operate.
include traditional training in purpose-built facilities, on-
the-spot training, consulting services, extension, seminars
When are farmer organizations most effective
and workshops on the dynamics of organizational innova-
at innovating?
tion, exchange programs so that managers can see the capa-
Farmer organizations are particularly effective for develop- bilities of innovative farmer organizations, tutoring, and
ing technical and commercial innovations when they focus mentoring. For example, African managers at the Kenya Tea
SYNOPSIS for which there was little use.2 After the first successful
his profile summarizes lessons from the networks experiments with no-till,3 ICI realized that a new agricul-
70
farmers, agrochemical firms, equipment manufacturers, THE INNOVATIVE ELEMENT
and sometimes researchers and public extension agents. The
The main innovation was the emergence and evolution of
networks had varied origins. Some were started by private
new organizations—innovation networks that involved dif-
companies, others by public researchers, farmers, or public
ferent partners, including public and private researchers,
programs. Massive diffusion occurred only where networks
farmers, equipment manufacturers, extension agents, and
that developed strong learning capabilities and effective
agrochemical companies—that generated, adapted, and dif-
interactions emerged. When no-till packages were devel-
fused no-till techniques. To reach their objectives, the net-
oped with traditional experimental methods or diffusion
works innovated in three domains:
was organized through conventional approaches, adoption
was minimal.
■ Organizational. New modes of interaction among differ-
Although the partners and research and extension
ent actors in the AIS emerged, as well as new approaches
approaches varied, a common factor in all successful cases
to research and extension.
was the emergence of a flexible innovation network in
■ Equipment. New planters, sprayers, and combines
which farmers’ participation was important (Ekboir
enabled the consolidation of an innovative agricultural
2002). The uniqueness of no-till processes is exemplified
equipment industry.
by the Ghanaian experience. To date, Ghana is the only
■ Agricultural practices. New practices were devised for
country where a no-till package was adapted for small-
planting and fertilization, weed control, management of
scale farmers but not for large-scale farmers (box 1.23).
soil cover, crop rotations that span several production
Table 1.4 shows the partners and defining factors of some
cycles, and harvesting.
successful networks.
For centuries, Ghanaian farmers used traditional he worked with innovative farmers to develop a weed
slash-and-burn agriculture, which is equivalent to no- and mulch management system that small-scale farm-
till without mulch. Slash-and-burn was sustainable ers could use and organized a successful extension
when abundant land allowed farmers to leave the program that motivated and provided resources to
exhausted plots fallow for many years. Demographic public extension agents. The package was dissemi-
pressure in the second half of the twentieth century nated to farmers in Ghana’s forest, transition, and
forced farmers to shorten or abandon fallows and Guinea savannah zones and rapidly adopted. In 2005,
made slash-and-burn unsustainable. In the 1980s, no-till was used by an estimated 300,000 small-scale
research to adapt no-till with mulch as a sustainable farmers.
alternative to slash-and-burn was initiated by the Unlike other countries, in Ghana the no-till package
Crops Research Institute in Kumasi in conjunction responded to small-scale farmers’ needs. Adoption was
with the International Maize and Wheat Improvement facilitated by the low-input agricultural practices that
Center. Farmers did not adopt the package, because it already prevailed and the fact that few farmers had ani-
was difficult to plant with a stick through the thick mals (other than some chickens). There was no need to
cover of plant residues in the field. In the 1990s, the develop no-till planters, which were major obstacles in
importer of glyphosate (a herbicide), the Crops other countries where no-till was introduced, because
Research Institute, and Sasakawa–Global 2000 formed crops were planted with a stick or cutlass (machete).
a partnership. Monsanto, trying to emulate its success The lack of equipment proved to be a limitation on
in Brazil, later joined the partnership. The partners’ widespread adoption among large-scale and mecha-
key action was to fund the doctoral dissertation of a nized farmers, however, because they needed suitable
highly motivated soil scientist. As part of his research, machinery to adopt the technology.
Source: Author.
BENEFITS, IMPACT, AND EXPERIENCE the technology. As noted, this relatively small area is
deceiving in the sense that no-till is used by very large num-
In all countries listed in table 1.5, except China, no-till was
bers of small-scale farmers. No-till practices are expanding
adopted mainly by large- and medium-scale commercial
in South Africa, Venezuela, New Zealand, France, Chile,
farmers. Among countries that have adopted no-till but do
Mexico, and Colombia and are in the early stages of adop-
not appear in table 1.5, India, Pakistan, Bangladesh, Nepal,
tion in other countries (Derpsch 2010).
and Ghana together account for 1.9 million hectares under
No-till had several important impacts on the AIS: the module overview). Innovation brokers and catalytic
agents played critical roles in the exploration (TN 2 in this
■ New linkages developed among actors of the AIS and module and module 3, TN 4). Appropriate resources should
with foreign sources of technical information. be provided to pay for their services and for the trial of
■ New business models developed. For example, contract- organizational innovations.
ing planting and harvesting in South America and India Effective networks explore different approaches to organize
allowed more efficient use of specialized equipment. the generation and diffusion of the technical innovation. In
■ New research methods were developed, accelerating the the case of no-till, the research networks used partici-
generation of the no-till package. patory, on-farm research approaches, whereas the exten-
■ New approaches were developed to disseminate the sion networks used a larger range of instruments, including
package. self-help groups, demonstration days and plots, conven-
■ Some researchers and extension agents changed the way tions, publications, radio and television programs, sales
they interacted with other actors in the AIS. forces of agrochemical and equipment companies, and
■ Farmer organizations developed capabilities for effec- farmer-to-farmer communication. In the development of
tively exploring alternative technical and organizational complex innovations like no-till, flexible approaches for
solutions. research, financing, and evaluation should be used.
■ Existing research and extension capabilities were used The composition of innovation networks changes as the
more effectively. process matures and new challenges emerge. No-till networks
■ Effective farmer organizations with strong innovation started as small teams and incorporated new members as
capabilities emerged. the innovation process evolved. Despite this commonality,
in each country (or even regions within countries) different
processes led to the emergence of effective innovation net-
LESSONS LEARNED AND ISSUES
works. For example, in southern Brazil the catalytic agent
FOR WIDER APPLICATION
was a private firm (ICI), but later, farmer organizations
Effective networks explore different organizational innova- were the key actors in diffusing no-till among commercial
tions until they find approaches appropriate to local condi- farmers. In Argentina and northern Brazil, a group of
tions. “Research” networks adapted the package to local con- researchers and farmers developed the package, but a coali-
ditions and “extension” networks diffused it; these networks tion of innovative farmers and agrochemical companies dif-
interacted assiduously, and some actors (especially inno- fused it. In Bolivia and Paraguay, commercial farmers led
vative famers) participated in both of them. The most inno- the process, but private firms joined the networks after
vative aspects of the process were the composition of the no-till was widely adopted. Innovation projects should rec-
networks and the ways in which they operated (box 1.3 in ognize the changing needs of innovation networks and
SYNOPSIS tions could not provide them, producers and other actors
in the AIS imported or developed them. The federal gov-
number of internal and external factors influenced
75
the states. The foundations also receive additional funds their independence, but soon they recognized the benefits
from public and private sources for special projects. of civil society participation and supported the independ-
Individual farmers cannot join the Produce Foundations; ent Produce Foundations. Eventually most foundations
instead, a few farmers are invited to participate on the followed suit and requested independent status as well.
boards, and each foundation sets the selection criteria.1 The innovative farmers also realized that the individual
Individual farmers participate in projects financed by the foundations were too isolated and that a national coor-
foundations, both as collaborators and as contributors of dinating office was needed; before long, COFUPRO was
resources. Initially, the Produce Foundations financed created.
projects that mainly helped commercial farmers; over the Over the years, COFUPRO and the foundations have
years, they have increasingly sought to meet the needs of developed a better understanding of innovation processes
small-scale farmers while continuing to support commer- and consolidated their structure, operational routines, and
cial agriculture. institutional culture. The process entailed a progressive
The objective that motivated the creation of the Produce transfer of authority from individual foundations to
Foundations was to mobilize additional funds for the COFUPRO. The main benefits of a strong COFUPRO were
national agricultural research organization and transform (1) the consolidation of a system of decentralized experi-
supply-driven research and extension systems into mentation with centralized learning, (2) stronger lobbying
demand-driven systems. After several iterations, the cur- capabilities, (3) more transparent use of resources, and
rent objective of the federal government and the Produce (4) more effective operational rules. The learning process
Foundations is to explore new instruments to foster inno- was particularly effective. The foundations moved from
vation, transform traditional research organizations and financing traditional research and extension projects to
universities so that they can better integrate into innova- supporting innovation activities and stable interactions
tion processes, explore new methods to diffuse innova- among researchers, technical advisers, firms, and farmers.
tions, and influence the design and implementation of Each foundation tried new ways to support innovation
research, extension, and innovation policies by participat- and to manage its funds. Once effective operating rou-
ing in policy dialogues and educating policy makers on the tines were developed, they were adopted by all of the
nature of innovation. foundations.
The changes in the Produce Foundations’ objectives The foundations implement a number of activities, but
reflect lessons learned by the government and the founda- the most relevant for this module are their priority-setting
tions. When the federal government created the foundations methods, allocation of funds, and exploration of new meth-
in 1995 as part of its efforts to democratize and establish a ods to foster innovation:
new model for agricultural research, it negotiated with each
state governor to establish a foundation that would admin- ■ Priority setting. Over the years, the foundations tried sev-
ister public and private funds for finance research and eral methods to set priorities. The most important was a
extension projects. Each governor handpicked progressive two-year national consultation implemented in 2002,
farmers to join the state foundation’s board. Soon after join- which was the basis of all agricultural policies for the fol-
ing the boards, a few farmers recognized that they lacked an lowing five years. The process was considered too costly
understanding of managing public funds for research and and never repeated. In the following years, each founda-
extension, and they started to exchange information on how tion developed its own priority-setting method, but they
they operated their foundations. This process enabled inno- are converging on a permanent dialogue among the
vative foundations to differentiate themselves from the oth- foundation, researchers, and important stakeholders
ers. The foundations were also influenced by the political from the different agricultural clusters. In other words,
climate in their respective states, the presence of innovative they have moved from a demand-driven, linear process
farmers on their boards, and the backgrounds of the foun- to a continuous dialogue that results in participatory
dation managers (especially with respect to their managerial research and innovation (there are several modes of par-
experience in large organizations). ticipation, however).
In the beginning, when the federal and state gov- ■ Allocation of funds. For many years, the foundations used
ernments controlled the Produce Foundations’ boards, a competitive fund to select the projects to be funded. In
farmers from about six foundations demanded indepen- 2006, they realized that this method did not induce
dence. At first the federal and state governments opposed researchers to abandon their linear vision of science, and
MODULE 1: INNOVATIVE ACTIVITY PROFILE 2: LEARNING ORGANIZATIONS THAT SUPPORT INNOVATION IN MEXICO 77
Box 1.24 Organizational Learning in Mexico’s Produce Foundations: Evolution of
Priority-Setting Procedures
At the beginning, the Produce Foundations had no pre- research demands, first in each state and then at the
defined criteria to allocate funds. Farmers on the board national level—an exercise that was not repeated
would select projects to finance from among the pro- because it was deemed too expensive.
posals freely submitted by researchers. The foundations After a few years, the foundations realized that a
soon realized that the projects did not respond to farm- demand-driven system and clearly defined priorities
ers’ needs, and they started to search for priority-setting did not guarantee that researchers would provide solu-
methods. They learned of a methodology developed by tions that farmers could use, because it still allowed
the national science and technology council, which was researchers great latitude in defining the approaches to
based on the construction of restriction trees and an ex solve the problems. The next step was to modify the call
ante cost-benefit analysis of potential projects. This for proposals. The calls were very narrowly defined
methodology was used for a couple of years. (almost down to the title of the project desired), but
In 1997, COFUPRO authorities met the research after a few years, the foundations realized that this
director of the International Service for National Agri- new method still did not solve their problem because
cultural Research (ISNAR), who provided guidelines it was based on a linear vision of science. More
for a methodology based on accepted practices for recently, the foundations experimented with different
project design. The method involved organizing approaches to define priorities and transform how
forums where the various actors in agricultural chains researchers defined their methodologies. Researchers
could diagnose their most important problems. Over have been induced to interact more closely with farm-
the next two years, the foundations adapted this ers and move from their traditional research domains
methodology to the Mexican environment. They rec- to participate in innovation networks.
ognized that ISNAR’s methodology was better than The foundations continuously analyzed the lim-
the council’s approach because it was based on wider itations of the prioritization procedures in use and
criteria than the expected costs and benefits, and it actively sought alternatives. As they collected informa-
enabled different actors to help define priorities. The tion, they absorbed it to develop their own methods,
foundations implemented the methodology in 2002 which in turn induced changes in resource allocations
and 2003 to prioritize agrifood chains and identify and the monitoring of projects.
The Produce Foundations initially financed traditional techniques to identify the most effective
research and extension projects, but realized after a few communicators.
years that the projects had little impact on agriculture. ■ Creation of a company of small-scale farmers to
In 2003, an external evaluation introduced the founda- sell processed sheep meat to domestic and foreign
tions to the notion of innovation systems. A second markets.
evaluation in 2004 explained how to set up innovation ■ Establishment of a consortium of researchers who
projects. Since then, several foundations have imple- interact closely with farmers to validate and dissem-
mented innovation projects, while continuing to sup- inate innovations for livestock production.
port traditional research and extension activities. The ■ A joint venture with large-scale farmers to finance a
innovation projects include the following: stable research program (which included paying a
researcher’s doctoral studies) to develop innovations
■ Development of an organization of small-scale for pecan production.
farmers and their families that markets dried and ■ With financing from foreign foundations, import-
processed hibiscus flowers and uses the by-products ing a small sewage treatment plant for two remote,
to feed chickens for egg production. impoverished villages and using the treated water to
■ Development of a farmer-to-farmer system to irrigate greenhouses to produce fresh vegetables.
exchange technical and commercial information; ■ Teaming up with Wal-Mart to develop a supply chain
the system is based on Social Network Analysis for fresh vegetables produced by small-scale farmers.
Source: Author.
MODULE 1: INNOVATIVE ACTIVITY PROFILE 2: LEARNING ORGANIZATIONS THAT SUPPORT INNOVATION IN MEXICO 79
I N N O V AT I V E A C T I V I T Y P R O F I L E 3
80
Enterprise Innovation is supported by Innova-Chile, the ■ Development of mechanisms and instruments for dissemi-
multisectoral innovation agency of the Corporation to Pro- nating projects and programs with commercial potential
mote Production (CORFO).2 FIA and other small funds to agrarian enterprises.
focus on specific sectors and complement Innova-Chile. ■ Management intervention mechanisms that support col-
While FIA works mainly with small- and medium-scale laborative innovation initiatives submitted by clients
enterprises, Innova-Chile works with medium- and large- (box 1.26).
scale agroindustrial entities and entrepreneurs. ■ Evaluation of technical, economic, and social results of
projects cofounded by FIA, prior to their transfer and
implementation.
INNOVATIVE ELEMENT
The efforts of FIA changed the paradigm for agricultural Currently FIA works with the World Bank on redesign-
research and development, which had been confined to ing the system for agrifood and forestry research, develop-
technology institutions and academia and yielded results ment, and innovation through scenario planning. In this
that often lacked commercial application. Aside from facili- context, FIA plays the role of coordinator and broker,
tating partnerships across the public and private sector, interacting closely with all parts of the system—agricultural
including producers and industry, FIA supports innovation producers, financial agencies, companies, technological
in the following ways: institutes, or universities.
Box 1.26 Mechanisms Used by Chile’s Foundation for Agricultural Innovation to Support Innovation
The Foundation for Agricultural Innovation uses sev- assemble and synthesize technical, economic, and/or
eral mechanisms to support initiatives and innovation commercial information to aid decisions on future
projects, technology transfer, and human resource innovation initiatives. Projects are funded on innova-
development. Territorial innovation programs are tions that improve a company’s competitiveness and
regional initiatives led by stakeholders and represen- that of the sector to which it belongs. Projects must
tatives of an agrifood chain in a particular region or show measurable market effects. Visits to centers of excel-
territory. Technology consortiums are joint ventures lence are sponsored in Chile and abroad to observe and
between technology agencies (including public evaluate technological, organizational, and managerial
research institutes and universities) and private enter- innovations in production systems. Individuals are also
prises to create a new technology-based company or sponsored to attend national and international technical
pursue innovative research on new commercial tech- events, such as seminars, symposiums, congresses,
nologies (for the grape, potato, and dairy industries, for conferences, and technology fairs. FIA also funds specific
example). On a smaller scale, technology development events (seminars and conferences) to disseminate and
programs promote specific technological development transfer national and international experiences related
and innovation led by stakeholders and representatives to products, processes, and innovative tools for market-
of an agrifood chain. Innovation in agri-food marketing ing, organization, and management to different actors
supports market integration and market development in the AIS. Consultants provide specific skills to enhance
tools for micro, small-scale, and medium-scale agri- competitiveness of specific products, processes, or
food companies. FIA also conducts numerous studies to organizations and their management.
Source: Author.
In the mid-1990s, Chile produced olives on a small ■ Expanding area planted to high-yielding cultivars.
scale—approximately 3,000 hectares, of which 350 ■ Acquiring international technical expertise for agro-
hectares were for oil production. Yields were relatively nomic and processing problems and marketing.
low, averaging 3–4 tons per hectare and 16–18 percent ■ Training specialists in olive cultivation and industri-
edible oil. Production relied on outdated practices. The alization.
National Olive Development Program, launched in 1995 ■ Establishing modern oil-processing plants.
by the Ministry of Agriculture and coordinated by FIA, ■ Developing a brand and marketing Chilean olive oil.
addressed problems (agronomic, processing technolo- ■ Conducting international seminars to promote
gies, zoning) that limited the industry’s development. It Chilean olives and olive products.
involved all agencies under the ministry, plus producers,
private companies, and other entities, including Fun- By 2009, planted area reached approximately
dación Chile. The ultimate goal was to make olive pro- 21,500 hectares (65 percent of production was destined
duction more competitive and stable and improve access for oil and the rest for table olives). Investments in
to domestic and international markets (mainly the the sector remain strong and have reached US$50 mil-
United States, Spain, and Canada). To that end, FIA lion annually. Exports of extra virgin olive oil from
supported the following: Chile have increased tremendously in recent years. In
2003, Chile exported 53.7 tons, with a free-on-board
■ Deepening market research and identifying business (FOB) value of US$158,200; in 2007, Chile exported
opportunities. 562 tons, with an FOB value of US$3.1 million; and by
■ Identifying and multiplying new, more appropriate 2009, it exported 1,933 tons with an FOB value of
genetic stocks. US$12.5 million.
84
Box 1.28 Rising Input Use and Agricultural Debt in Andhra Pradesh
Andhra Pradesh is one of India’s major producers of (Cropping intensity during 1980–81 and 1990–91 was
rice, cotton, groundnuts, and lentils. Agriculture 1.16; gross cropped area declined from 12.5 million
accounts for 25 percent of GDP and 60 percent of hectares in 1980–81 to 12.1 million hectares in 2004–05,
employment. Most farmers in the state practice con- according to the Government of Andhra Pradesh and
ventional, input-intensive farming that relies on peri- Centre for Economic and Social Studies (2008).) The
odic purchases of high-yielding seed, chemical pesti- same period saw a reduction in government-provided
cides, and chemical fertilizers. As much as 35 percent of public services that left farmers increasingly dependent
cultivation costs go to pesticides and fertilizers alone, on moneylenders and input traders. Traders became
which is five percentage points above the national aver- many farmers’ sole source of credit, inputs, and related
age (NSSO 2003). High production costs generate information. One result of this arrangement was that
tremendous pressure to borrow heavily to pay for Andhra Pradesh farmers, ill-informed about the dan-
inputs and make ends meet. The average outstanding gers of incorrect input use, applied far more pesticide
loan for farmers with small landholdings was more than their counterparts in any other state in India:
than twice the national average in 2005. Among farm 0.82 kilograms per hectare annually, compared to the
households, 82 percent were in debt—the highest national average of 0.3 kilograms per hectare (Govern-
estimated prevalence of debt among farm households ment of Andhra Pradesh, Irrigation and CAD Depart-
in India (NSSO 2005). Many farmers used their land as ment 2007). Another result was that many traders and
collateral, eventually becoming nothing more than moneylenders entered into buyback agreements with
tenant farmers or wage laborers on their own land. farmers at below-market prices in return for their ser-
Owing to rising debt, land mortgages, and uncertain vices (Ramanjaneyulu et al. n.d.). Purchasing inputs
profit potential, planted area in Andhra Pradesh plum- imposed such a financial burden on smallholders that
meted by more than 988,000 acres between 1980 and conventional agriculture no longer offered a viable
2005, along with yields and agricultural growth. livelihood.
Source: Authors.
INNOVATIVE ELEMENTS
agriculture makes farming sustainable from an economic
Andhra Pradesh has created an ecosystem of support in perspective. At higher levels, the federation organizes train-
which a bottom-up planning process beginning at the ing, engages NGOs and government agencies for additional
household and community level and aggregating to higher support, and monitors progress.
levels enables the rural poor to identify needs and define Farmers have also used this institutional platform to
workable solutions (in other words, to innovate). For practice community-managed sustainable agriculture
instance, farming households develop a microcredit plan (CMSA), a knowledge-intensive alternative to input-
with the help of their VO and are linked to commercial intensive agriculture. Through their groups, farmers learn
banks through their subdistrict and district federations. about the harmful effects of chemical pesticides and fertiliz-
Community groups also manage enterprises such as pro- ers on soil, water, and health. They gain access to farmer
curement centers for agricultural commodities and milk, field schools, seed banks, equipment centers, finance, and
which provide grading, quality control, aggregation, and procurement centers, all organized by their respective VOs.
value addition for products. At the subdistrict level, federa- District and subdistrict federations market the CMSA pro-
tions invest in enterprises such as chilling centers for milk duce. Through the district federations, farmers can use
to increase shelf life. Meanwhile, the district federation funds from the National Rural Employment Guarantee
manages a number of support functions, including running Scheme, a social safety net ensuring every rural poor house-
an insurance scheme for members through a network of hold has at least 100 days of paid work each year, to pay for
call centers. Together, these activities help farmers receive on-farm improvements for sustainable agriculture. Exam-
higher prices and foster an environment that favors prof- ples include transplanting tank silt to farms, leveling land,
itable agriculture. This support along the value chain of or building structures to capture rainwater. In this way, a
MODULE 1: INNOVATIVE ACTIVITY PROFILE 4: A RURAL INSTITUTIONAL PLATFORM MOBILIZES COMMUNITIES IN ANDHRA PRADESH 85
Figure 1.1 The Institutional Model for Federated Self-Help Groups
safety net entitlement is linked to productive, income-gen- As the discussion has indicated, the benefits of this organiza-
erating activities conducted by community organizations. tional structure include improved food security as well as the
Largely owing to the effectiveness of the institutional plat- accumulation of financial acumen, new agricultural knowl-
form (figure 1.2), poor and marginal farmers have devel- edge and skills, and productive assets. In particular, the
oped a more successful livelihood strategy. institutional platform’s success in enabling communities to
To improve food security, households belonging to SHGs pursue alternatives to conventional agriculture has led the
identify the amount of food they can purchase with their state government to call for the Agriculture Department’s
own funds, the amounts obtained through the public safety Agriculture Technology Management Agency (ATMA) to
net, and their remaining needs. The VO aggregates the collaborate with the Rural Development Department’s SERP
information, ensures that each family gets the safety net to to promote sustainable agriculture and move toward
which it is entitled, and then purchases the rest of the food organic agriculture. SERP will train the ATMA staff to use
from the market in bulk. Households belonging to the SHG the CMSA model; ATMA will then work with SHGs to pop-
can then take a low-interest, long-term loan from the VO or ularize this low-cost, high-return type of agriculture. The
SHG to purchase rice on terms they can afford, thereby hope is that it will yield benefits similar to those seen with
smoothing their consumption. CMSA (box 1.29).
Through SERP and the rural institutional platform it pro- Experience with the rural institutional platform adopted in
vides, communities have organized to meet multiple needs. Andhra Pradesh indicates how the capacity to organize at
Self-Help
Group
(SHG)
Village Subdistrict District
Organization Federation Federation
(VO)
Farmer
SHG
Source: Authors.
Box 1.29 Benefits of Community Organization to Pursue More Sustainable Agricultural Practices in
Andhra Pradesh
Savings and incomes increased. A survey of 141 farm- per acre for paddy and rice. Although CMSA brings
ers found that production costs were 33 percent lower higher labor costs, farmers are meeting this challenge
under CMSA than conventional agriculture (US$180 by working together to manage pests and increase soil
versus US$280 per acre). The savings translate directly fertility. Demonstrations of multicropping and inter-
to increased incomes for farmers. For crops raised cropping alternatives are helping more small-scale and
without pesticides and fertilizer, farmers command a marginal farmers in Andhra Pradesh realize the bene-
premium of 14–33 percent. Even though CMSA pro- fits of diversification. Farmers on nearly 319,000 acres
duce is not yet certified organic, consumers (espe- now plant one or two crops in addition to the main
cially in urban retail markets) increasingly recognize crop.
the benefits of pesticide- and fertilizer-free food. Communities obtained debt relief. In a survey of five
Yields remained stable and diversification increased. districts, of 467 families who had mortgaged their
To track changes in paddy yields after farmers switched farmland, 386 had paid off their debt and reclaimed
to CMSA, 400 farmers’ fields in five districts were their land within two years through the savings from
monitored closely. Yields remained the same, ranging CMSA. The social empowerment associated with
from 1,900 kilograms per acre to 2,200 kilograms getting their land back from moneylenders and
MODULE 1: INNOVATIVE ACTIVITY PROFILE 4: A RURAL INSTITUTIONAL PLATFORM MOBILIZES COMMUNITIES IN ANDHRA PRADESH 87
Box 1.29 Benefits of Community Organization to Pursue More Sustainable Agricultural Practices in
Andhra Pradesh (continued)
farming on their own land is very significant for farm- farm implements. About 5,400 small-scale and mar-
ers, perhaps as important as the economic relief it ginal farmers are generating additional income by
provides. operating vermi-composting units.
Families increased their investments in productive Food security improved. Data collected by SERP from
assets and sustainable land and water management. 22,000 CMSA farmers in Khammam District show that
Communities dug more than 10,000 composting pits household expenditures on food grains declined by half
and 1,200 farm ponds. Fertile tank silt has been applied owing to higher yields of food grain crops and the
to more than 13,000 acres of farmland. Lower produc- introduction of a second crop. Families purchased
tion costs and higher net incomes have made farmers 44 percent less food grain from the market.
less risk averse. Primary surveys by SERP show that Human and environmental health benefited. Farm-
families are leasing additional land for cultivation, ers reported a noticeable drop in pesticide-related
resulting in additional income for households. Farmers health problems. Women, who traditionally sprayed
are also bringing fallow and government-assigned land the crops—and suffered the effects—are now strong
under cultivation. advocates of the new practices. In three districts, hos-
Communities saw greater business innovation and pitalizations from pesticide poisoning declined by
new livelihood opportunities. Villages have begun to 40 percent, from 242 cases per year to 146 cases. Vil-
benefit from jobs and enterprises catering to inputs lages that completely stopped pesticide applications
for CMSA and by providing services such as quality are benefiting from the elimination of pesticides
control and procurement for CMSA produce. At least from groundwater and soil. Insects and birds, no
2,000 jobs have been created in villages through shops longer targeted by broad-spectrum pesticides, are
that supply biopesticides, organic nutrients, seed, and returning to the fields.
Sources: Authors.
several levels fosters innovation and adaptation in the local to achieve a large-scale transformation in smallholder
context, with local people, and contributes to success on a farming. These institutions of the poor plan, manage,
larger scale as well: monitor, and scale up new initiatives at much lower
transaction costs and with much greater purposefulness
■ Institutions (and their designers) matter. Initiatives than is otherwise possible. Building social capital is a
designed by the farmers who will participate in them necessary investment in transforming human, natural,
carry real advantages over initiatives that outsiders and economic capital.
might design for them. Many of these advantages relate ■ Small-scale and marginal farmers need a creative
to the fact that the people who plan and implement approach to the delivery of agricultural extension ser-
activities are the same people who benefit from them. vices. Practicing farmers should be the central stake-
Their ownership of the initiative greatly increases the holders contributing to an extension system. Where the
likelihood that it will be sustainable. The social capital system has failed to meet their needs, they should be
they cultivate and build upon in working together for enlisted as active extension agents. Their presence in
common goals changes the rules of the game for farmers the village makes them easily accessible and more
in relation to the market and the government. In organ- familiar with local conditions and challenges. For
izing and mobilizing at higher levels of aggregation, example, the use of successful CMSA farmers as com-
farmers gain a collective voice and empower themselves, munity resource persons was critical to building and
which is something that cannot realistically be done for scaling up the program. The experience of the resource
them from the outside. Supporting their initiatives by persons gives their messages greater credibility among
investing in a process that over time comes to involve farmers. NGOs can facilitate extension-related ser-
millions of rural people, especially women, has helped vices, but eventually the community resource persons
MODULE 1: INNOVATIVE ACTIVITY PROFILE 4: A RURAL INSTITUTIONAL PLATFORM MOBILIZES COMMUNITIES IN ANDHRA PRADESH 89
I N N O V AT I V E A C T I V I T Y P R O F I L E 5
90
Aside from the collaborative agreements with its mem- Examples of technology and other knowledge generated
bers, CLAYUCA operates through a formal agreement and shared through CLAYUCA include the following:
between its executive committee and CIAT. CIAT is a
strategic partner, hosting the consortium, providing core ■ Technology platforms for more competitive cassava pro-
funding, legal support, administering CLAYUCA funds, and duction and utilization. Technology platforms include
facilitating the use of the laboratories, fields, equipment, and equipment as well as the methodologies, instructions,
offices under a fee payment scheme. CLAYUCA’s activities processes, training, and other elements to use it correctly.
are partially financed through an annual membership fee of CLAYUCA has developed a number of platforms: (1) for
US$15,000 per country. In some countries, a private insti- producing high-quality, refined cassava flour for human
tution pays the fee; in others, a public agency pays (the and industrial use; (2) for producing and using cassava
Ministry of Agriculture, for example). In Costa Rica and leaves in animal feeding systems; (3) for producing and
Colombia, the annual quota is paid by a group of public and using sweet potato in human food and animal feed;
private entities. Additional funding is obtained through spe- (4) producing hydrated ethanol for local use with cas-
cial projects and consultancy services. These resources are sava, sweet potato, and sweet sorghum (the technology is
invested only in activities defined collectively by the members. small-scale, low-cost, and easily operated and managed
by small-scale farmers); and (5) for producing cassava
commercially (mechanized planting, partially mecha-
THE INNOVATIVE ELEMENT
nized harvesting, and soil fertility, pest, and disease man-
The innovative aspect of CLAYUCA is its role as a regional agement practices).
facilitator of public-private alliances for cassava research ■ Planting and breeding materials. CLAYUCA has facili-
and development, using a value chain approach and empha- tated access to improved, elite cassava germplasm devel-
sizing competitiveness. Different actors in a member coun- oped by CIAT and other advanced research centers.
try’s cassava subsector identify where cassava’s overall com- ■ Communications. CLAYUCA communicates relevant, cur-
petitiveness can be improved along the value chain rent information on cassava technologies to stakeholders
(production, processing, or utilization). They identify orga- in the form of websites, electronic bulletins, training
nizational and technical constraints and formulate and events, annual meetings, study tours, and technical books
implement technological interventions. The new empha- and bulletins.
sis on competitiveness, a prerequisite for private sector ■ Human resources development. Through training offered
involvement in cassava-based industries, has motivated at CIAT and in member countries, CLAYUCA has
farmers, especially small-scale farmers, to adopt improved strengthened technical capacity in such areas as cassava
production technologies such as better varieties and processing, crop management, product and market
improved crop and soil management practices. Increased development, tissue culture, and cassava germplasm
competitiveness on the supply side is complemented by pri- evaluation and selection.
vate investments and contributions to processing capacity
and management. The network’s regional and international During its first decade, CLAYUCA has benefited various
character offers particular advantages for countries where actors in the cassava subsector of each member country. It
cassava research has been limited by small national budgets also generated the regional benefits described in the sections
and little external interaction. that follow.
CLAYUCA’s structure enables members to have better con- Public institutions have taken advantage of the presence of
trol of the regional research and development agenda for CLAYUCA in their countries, supported by the strong
cassava and participate more equitably in the distribution of research background of CIAT, to improve their capacities in
benefits. The consortium also facilitates better access for areas such as managing genetic resources, training technical
public and private agencies to technologies generated by personnel, and improving knowledge and information
international and advanced research centers. Those centers, about modern technologies for cassava production, process-
in turn, benefit from participating in a regional agenda for ing, and utilization. At the country level, it is difficult for
cassava research with relatively little investment. one single institution to possess the interdisciplinary
MODULE 1: INNOVATIVE ACTIVITY PROFILE 5: CASSAVA DEVELOPMENT RELIES ON PUBLIC-PRIVATE RESEARCH PARTNERSHIPS 91
capacity to scale up new technologies into commercial China, Europe), allowing members to see technologies in
activities. Through CLAYUCA, national and regional net- operation and make informed investment decisions.
working ensures that experience and knowledge are shared. The wealth of cassava genetic resources in germplasm
In some cases, the presence of CLAYUCA has helped to banks at international and advanced research centers will
reconfigure relationships between the public and private enable cassava to cope with the effects of climate change,
sector and farmer organizations. among other needs. CLAYUCA has helped member coun-
At a relatively low cost, CIAT benefited from tries and farmer groups gain better access to this genetic
CLAYUCA’s role as a regional forum for planning, financ- diversity for their own in-situ evaluation and selection pro-
ing, and implementing cassava-based research and devel- grams. CLAYUCA has also facilitated farmer groups’ access
opment to reestablish itself as a stronger actor in the to improved varieties with higher yield potential and greater
regional innovation system for cassava. Public and private adaptation to biotic and abiotic stresses. Farmers have ben-
institutions that require technologies generated by CIAT efited from the new markets, additional income, and
now have access facilitated through CLAYUCA. At the employment opportunities represented by the cassava-
same time, CIAT receives stronger feedback from based agroindustries established in some CLAYUCA coun-
CLAYUCA stakeholders on the performance of its tech- tries. Through CLAYUCA, some farmers have gained access
nologies and emerging problems and priorities in the to special services such as production credits under very
cassava subsector. favorable terms (box 1.30).
The Panayuca Project, Panama’s stakeholder in infrastructure and handles logistics and marketing.
CLAYUCA, is a strategic alliance between Panayuca, a Before Panama’s cassava subsector was affiliated with
private company, and the Association of Small and CLAYUCA, credit lines for cassava at premium rates were
Medium Agro-producers of Panama (APEMEP). not available to small-scale producers. The government
Panayuca’s main goal is to raise living standards in did not regard cassava as a priority crop. After intense
Panama’s poorer rural areas by producing cassava and its lobbying led by Panayuca, the government included cas-
derivatives. APEMEP is an association of more than 300 sava as one of the crops eligible for credit at very low,
organizations, including farmer unions, cooperatives, almost subsidized rates. This policy decision benefits a
women’s groups, and indigenous groups, with more large group of small-scale farmers, facilitates their part-
than 60,000 individual members. APEMEP members nership with the private sector, and enables farmers and
produce the cassava; Panayuca develops the industrial industry to operate at a competitive commercial level.
Source: Author.
Note: APEMEP = Asociación de Pequeños y Medianos Productores de Panamá.
MODULE 1: INNOVATIVE ACTIVITY PROFILE 5: CASSAVA DEVELOPMENT RELIES ON PUBLIC-PRIVATE RESEARCH PARTNERSHIPS 93
Box 1.31 Policy Action to Diversify the Market for Cassava in Costa Rica
Costa Rica’s cassava area is not very large, but intensive Ministry of Agriculture created a country-level Cassava
cassava production and processing operations have con- Committee to promote the use of cassava in animal feed
verted Costa Rica into the world’s leading exporter of and thus diversify the market for the cassava crop. This
frozen cassava and paraffin-coated cassava, principally policy decision means that a large group of institutes
to markets in the United States and Europe. In 2008, and entities that were working independently will begin
Costa Rica exported 75,000 tons of frozen and paraffin- working in a coordinated fashion. CLAYUCA’s Costa
coated cassava, with a market value of US$60 million, Rica group is a member of the new committee and will
but a significant share of cassava is not harvested play an important role in transferring CLAYUCA tech-
because it does not meet export standards. In 2010, the nologies for growing and processing cassava for feed.
Source: Author.
institutional, political, and financial environment, however. Instability and frequent changes in government
Rarely can they implement long-term strategies to support support for research
cassava farmers and enhance the subsector. The skills and In many countries, every change in the central government
scientific capacity of technical personnel in some (such as a new president or minister of agriculture) brings a
CLAYUCA countries must be strengthened. In some cases wave of new policies that alter support for agricultural
the private sector is willing to finance such training, but research and development. Public support for cassava
some of the burden must be shared by public agencies, or research in Colombia, for example, has run the gamut from
they will not be able to form productive partnerships with full to negligible support and funding for cassava technol-
private organizations. Successful partnership will be facili- ogy development projects. It is vital for public-private part-
tated if public agencies allocate specific funding for training nerships to seek independent, stable financing sources to
through specific projects, competitive grants, donor sup- avoid the vagaries of public funding and successfully pursue
port, and other means. partners’ research priorities.
95
business plan with the help of a private service provider. with the objective of monitoring implementation of the
The private service provider also produces feasibility stud- business plan. The committee facilitates communication
ies, which are reviewed by a multistakeholder committee to between buyer and seller.
determine the business plan’s feasibility. Plans with satis-
factory technical, financial, and market feasibility receive
Types of alliances
funding.
Alliances can be balanced fairly evenly between producers
and buyers. They may also be dominated by either produc-
Who funds rural productive alliances?
ers or buyers.
World Bank project funds are transferred to producer orga- In well-balanced alliances, buyers compete to source
nization accounts in installments, based on evidence that from organized producers. Producers can meet the buyer’s
the organization has used the previous installment accord- demands and accrue individual benefits from collective
ing to the business plan and that expected outputs have efforts. Producers in this situation improve their bargaining
been achieved. Grants from the project are matched with power with the buyer. Success comes from the productive
contributions from the producer organization and the use of technical assistance and the buyer’s ability to market
buyer (in the form of technical assistance and inputs) and the product based on its particular characteristics, such as
possibly funding from public and/or private institutions, whether it is organic or has been produced for a specific
such as municipal governments or commercial banks. niche market.
In Quindio, Colombia, plantain producers have a strong
foothold in determining the prices of their products. The
What do the grants finance?
buyer provides technical assistance as needed, and both the
The grants finance technical assistance in production, man- buyer and producer organization are more competitive at
agement, and marketing for members of the producer orga- their respective stages in the plantain value chain than
nization. The technical assistance mitigates risks for the before.
buyer and builds trust between partners, which is essential In alliances dominated by a single buyer, the producer
to maintaining and sustaining the relationships. The grants organization has limited room to negotiate, even if both par-
also cofinance infrastructure or equipment such as irriga- ties benefit from being in the alliance. In instances where the
tion equipment for individuals or collective storage and buyer is the dominant actor, the buyer helps the producers
packing facilities. In certain instances, project grants fund access the market. The added value of collectively organizing
seed or startup capital for inputs to help smallholders over- and creating the alliance will probably go to the buyer, how-
come initial financial barriers when dealing with commer- ever, unless special efforts are made to help producers
cial banks. develop negotiating skills to increase their leverage. In other
situations, with a diversity of marketing possibilities for the
producers, there is a risk that producers will circumvent the
Creating savings and sustainable funding
buyer and sell directly to alternate markets.
In several countries, members of producer organizations One alliance of this type is Agrìcola Cafetelera Buena
agree to repay to their organization a share of the grant they Vista, a coffee alliance in Bolivia. The buyer provides pro-
receive from the project. (Technical assistance is typically ducers with technical assistance to ensure that the coffee is
not reimbursed.) This repayment creates a “revolving fund” certified organic. In this instance, the buyer is very involved
that the producer organization will use to provide credit to with the producer organization and works to ensure good
its members when project support is over. quality conditions for the producers. Given the high costs of
organic coffee production and lack of marketing capability,
the single buyer corners the market, however, leaving pro-
Implementing the rural productive alliances
ducers with little room to negotiate.
For each alliance, a business agreement is signed between
the agency in charge of project implementation, the com-
THE INNOVATIVE ELEMENT
mercial partner, the technical service provider, and the pro-
ducer organization. An Alliance Management Committee is In summary, rural productive alliance projects enable pro-
formed, which includes representatives from each actor, ducer organizations to overcome the problems faced by
MODULE 1: INNOVATIVE ACTIVITY PROFILE 6: RURAL PRODUCTIVE ALLIANCES: A MODEL FOR OVERCOMING MARKET BARRIERS 97
improve organizational and management skills. In risk that a buyer or producer organization may default
some cases, there is a need for additional support after from the alliance. Feasibility studies look into the market
subproject implementation. and technical aspects of the alliance, but often they fail to
■ The producer organization cannot provide services to its analyze how the organization functions and its capacity
members. Producer organizations are often under social to manage a partnership with a buyer.
pressure from the rural community at large to make ser- ■ To sustain participation in high-value markets, the pro-
vices accessible to nonmembers. Producer organizations ducer organization needs to build its marketing skills.
should provide services, but only to members. This strat- For example, the organization could benefit from a
egy keeps membership attractive and encourages pro- third-party market agent or broker to assist in breaking
ducers to market through the organization so that it can into particular markets. Productive alliance projects
continue complying with contractual arrangements should consider establishing such brokers, whose role
made with the buyer. Otherwise the organization is likely would be to scout the market for opportunities and iden-
to fail. tify the producer groups that can take advantage of them.
■ The producer organization lacks adequate commercial or These brokers should be private sector agents.
professional skills. Producer organizations also require ■ Three key areas of support could help buyers improve
management, organizational, and marketing skills to the sustainability and productivity of the alliance:1
provide services of good quality, such as the capacity to (1) sensitization to the benefits of working with small-
manage a revolving fund. In Colombia, alliances that scale producers; (2) support to optimize marketability of
continued for at least two years after the project ended niche products; and (3) sensitization to the transaction
often involved two-tier producer organizations: grass- costs associated with working with small-scale produc-
roots organizations and their union. The first-tier ers. Initially buyers need support to manage their rela-
grassroots organizations are involved in managing pro- tionship better with small-scale producers. An example is
duction. At the union level, the organization deals with being aware of smallholders’ cash constraints and the
procuring inputs, marketing, and financing, with paid difficulties they face in managing deferred payments,
professional staff. especially with supermarkets.
■ During implementation, projects need to address the
constraints to sustainability that alliances may face after
Recommendations
project support ends. As discussed, a well-functioning
After nearly a decade of implementing rural productive revolving fund is fundamental for ensuring that alliances
alliances in Latin America and the Caribbean, it is possible can be sustained. It enables producers to access credit
to identify several recommendations to ensure successful within their own organization and to demonstrate to
implementation and sustainability of the alliances: financial institutions their ability to manage savings and
credit. It needs to be promoted more forcefully during
■ Projects should emphasize cofinancing from commercial project implementation.
credit sources in addition to matching grants to fund ■ Projects need to include a handover strategy so that
business plans. Involving commercial banks means that domestic actors can fund, implement, and scale up activ-
the issue of collateral and guarantees must be resolved. ities when project support ends. At the moment, only the
Some projects establish guarantee funds to spread the Colombia project is concerned with these issues. By
risks to commercial banks and encourage them to part- focusing on scaling up its activities through the public
ner in funding rural alliances. Involving financial insti- sphere, however, the project is likely to face serious obsta-
tutions at the beginning of the project can also build cles, such as the lack of technical capacity, budgetary
their trust in producer organizations and help producer pressures on public officials, and political problems
organizations learn to deal with commercial banks. This (changes in government easily lead to changes in people,
learning on both sides is important to ensure that priorities, and policies). An alternative would be to work
smallholders can access credit and partnerships can be on the side of the buyers. Producer organizations consti-
sustained. tute one source of procurement for an agricultural good
■ More thorough and realistic feasibility studies of busi- that buyers need for their business, and they may be the
ness plans must analyze the ability of the producer orga- main source if it is produced mostly by smallholders.
nization to use the matching grant productively and the Once the project has demonstrated the potential that
MODULE 1: INNOVATIVE ACTIVITY PROFILE 6: RURAL PRODUCTIVE ALLIANCES: A MODEL FOR OVERCOMING MARKET BARRIERS 99
NOTES Thematic Note 1
Module 1 Overview 1. Empresa Brasileira de Pesquisa Agropecuária (Brazilian
Enterprise for Agricultural Research).
1. For example, a culture of collaboration among stake-
holders was a major factor facilitating collaboration and 2. Sistema Nacional de Investigación y Transferencia de
innovation in Finland and Korea (see module 6, TN 2). Tecnología (SNITT, National System of Research and Tech-
nology Transfer).
2. Not all interactions result in collaboration. Interactions
can also be antagonistic and result in conflict. 3. Government as well as leaders of the various
innovation-promoting participants in the AIS need a broad,
3. Module 4 discusses the role of, functions of, and
long-term perspective on agricultural development and
investments that research organizations require to per-
change, along with a sense of what is needed for such
form well in an AIS. TN 2 discusses public-private
development. They will need not only to identify innovation
research partnerships and IAPs 2 and 3 describe the for-
and development opportunities but also to understand the
mation of research consortia supported by competitive
historical, cultural, and social complexities in rural areas
grants. Module 5 provides further detail on innovation
and among consumers. A strategic vision usually describes a
funds, including competitive research grants and match-
set of ideals and priorities, a picture of the future—but the
ing grants.
strategic vision is also a bridge between the present and the
4. Despite this weakness, a few researchers with strong future, and it should be shared by the actors involved.
research capabilities are often found in these organizations.
4. However, the actual financing and allocation of funds
5. The analysis of how public research organizations can should belong to another entity, such as ministry or other
be transformed to better integrate into the AIS exceeds the special agency.
scope of this module. This issue is discussed in module 4
5. For comparison, see module 6, TN 2 on innovation sys-
and in Davis, Ekboir, and Spielman (2008).
tem governance.
6. Every individual in an organization has at the very least
the power to boycott the organization’s activities.
7. As noted, a “value chain” is the set of linked activities Thematic Note 2
that a firm organizes to produce and market a product
1. Fodder innovation project, http://www.fodderinnovation
(Porter 1985). The value chain is a network with a commer-
.org/.
cial focus, one actor that “organizes” and commands the
chain (Christensen, Anthony, and Roth 2004), and a rela- 2. Golden Rice Project, http://www.goldenrice.org/.
tively narrow and stable membership. 3. For an example of this type of research and its problems,
8. In terms of coordination, some organizations coordi- see Hall et al. 2001.
nate other organizations (for example, a commodity board 4. Networks with this combination of actors are said to
coordinates producer organizations, traders, and manufac- exhibit a “small-world structure.”
turers); some coordinate individuals (for example, a farmer
organization); and others coordinate both organizations
and individuals (as in a value chain). Thematic Note 3
9. For an example from Chile, see http://www.cnic.cl/ 1. See http://www.federaciondecafeteros.org/particulares/
content/view/469646/Un-camino-de-desarrollo-para-Chile en/.
.html; for one from the United Kingdom, see http://www 2. According to Fairtrade Labelling Organizations Inter-
.innovateuk.org/; for one from the Netherlands, see national (2011), Fairtrade-certified sales amounted to
http://www.innovatienetwerk.org/en/organisatie/toon/11/. approximately €3.4 billion worldwide in 2008. Sales of
10. Rural households can also form community associa- Fairtrade-certified products grew 15 percent between 2008
tions to solve local problems, such as problems with water and 2009.
supply or education, but these organizations are not dis- 3. A research institute (CIP) organized Papa Andina, the
cussed in this module. Andean potato network; the NGO Africare supported
11. See module 6, TN 2 on innovation system governance. smallholders’ access to markets, as have civil society organi-
12. Module 4, TN 4 provides further details on innovation zations (such as the Mexican Produce Foundations) and
brokers. farmer organizations (IAP 2).
13. Despite their institutional weakness, most universities 4. Providing public support for extension and advisory
and research and extension organizations have some very services does not mean that they are provided by tradi-
good professionals. tional public organizations. In the past two decades, many
OV E RV I E W
EXECUTIVE SUMMARY
financing, and stakeholder involvement. Another invest-
gricultural Education and Training (AET) has a ment priority—wide-ranging, systemic reform—requires
107
WHY INVEST IN AET TO SUPPORT At this critical juncture, AET remains the main supplier
AGRICULTURAL INNOVATION? of human resources for many of the public, private, and
civil-society constituents of the AIS, through its network of
Complementary investments in agricultural education have
agricultural universities, faculties of agriculture, vocational
been neglected but are essential to ensure a new generation
and technical colleges, and farmer training centers which,
of agricultural scientists and leaders (World Bank 2004).
together, constitute the AET system. The central question in
The growing focus on innovation systems in agriculture
this module is whether corrective investments in particular
presents agricultural education and training (AET) with a
AET models, programs, and activities will enable the AET
challenge and an opportunity. The AIS creates demand for
system to take its place as a forceful and valued agent of
skills not traditionally developed in agricultural education—
innovation in agriculture, keeping in mind that major
especially the “soft skills” that enable people to communicate
investments in AET systems occurred decades before the
better, listen more carefully and efficiently, nurture leader-
concept of “innovation systems” could influence their
ship, work cooperatively, and generally contribute more
design and that much work remains to be done.
effectively to the AIS. The emphasis on the innovation sys-
The general outlines of an AET system that is capable of
tem as a dynamic, highly interactive marketplace for ideas
operating successfully within an innovation system must rec-
challenges AET to strengthen its role as one of the critical
ognize that the innovation system in which it operates is
actors in agricultural innovation. All too often, agricultural
dynamic. The AET system itself will need to be agile, flexible,
education is failing to impart the knowledge, skills, and atti-
attuned to the needs of stakeholders in the innovation system,
tudes that can enable countries to feed growing populations,
and acutely aware of developments in technology, communi-
participate in international agricultural value chains, and
cations, and markets as well as challenges to production stem-
cope with climate change, especially in the midst of grinding
ming from high energy costs, declining water resources, and
rural poverty.
climate change. It will also need to channel advice to decision
The importance of enhanced skills for graduates who
makers on policies to guide AET at all levels.
will interact with a wide spectrum of actors in the AIS is
These generalizations aside, not all AET systems are
not in question; in fact, such skills assume even greater
equal. Some need deep, fundamental reform and strength-
importance, given that they will have to compensate for a
ening, whereas others may require only minor adjustments
considerable educational deficit among the population in
to become more effective within the AIS. Before discussing
general. The majority of people with whom skilled AIS
specific investment needs and strategies over the short,
actors will interact in most developing countries have not
medium, and long term, this module presents a broad
had access to much more than basic education. The World
review of AET—its structure, weaknesses, and strengths.
Bank (2007b, 9) notes that education levels in rural areas
The module then describes investments in education and
worldwide tend to be dismally low—an average of four
training that will equip actors in the agricultural sector to
years for rural adult males and less than three years for
negotiate the rapidly changing agricultural landscape with
rural adult females in sub-Saharan Africa, South Asia, and
greater skill, resilience, and innovation. The need for these
the Middle East and North Africa. Research in the 1980s
investments to foster gender inclusiveness in AET systems is
established the relationship between primary education
incontestable (for one example, see box 2.1). Above all, this
and annual farm output (Lockheed, Jamison, and Lau
module will emphasize that fostering a capacity for innova-
1980; Jamison and Lau 1982; Jamison and Moock 1984).
tion on this scale will require equally large measures of
Basic education is a critical element for communication,
persistence and collaboration—from the agricultural and
understanding, and assessing innovations in the interactive
education sectors and also from government, civil society,
process that prevails in the AIS.
and rural people.
For a very long time, governments and donors have
invested very little, or only very intermittently, in AET (Willett
1998; Eicher 1999; Rygnestad, Rajalahti, and Pehu 2005; World
THE STRUCTURE OF AET SYSTEMS
Bank 2007b). The results are deteriorating physical infrastruc-
ture for education, overcrowded classrooms and residential “Agricultural education and training” covers a range of
accommodations, the exodus of teaching staff, outdated cur- organized programs and activities that serve the need for
ricula, inadequate teaching and learning materials, and gradu- information, knowledge, and skills among those who work
ates’ limited skills and employment options. in various parts of the agricultural sector and the broader
In agriculture as in other domains, innovation requires seeks to strengthen the research and leadership skills of
communication of many kinds at many levels. The dis- African women in agricultural science, empowering
semination of knowledge, information, and innova- them to contribute more effectively to poverty allevia-
tions poses a special problem among women. Few tion and food security in sub-Saharan Africa. The two-
women graduate from agricultural education pro- year career development package builds on four cor-
grams—too few to work with women in societies where nerstones: establishing mentoring partnerships;
women are excluded from rights to land and other nat- building science skills; developing leadership capacity,
ural resources. Women are also marginalized from agri- and tracking, learning, monitoring, and evaluating
cultural events, activities, and programs led by men or fellowship-holders’ progress. The program does not
not permitted to communicate with men outside the provide funds for the fellows’ academic studies or offer
family. Essentially, “women have been . . . underrepre- research grants, although fellows can apply for research
sented at all levels of AET institutions, from postsec- attachment opportunities.
ondary to tertiary and higher education, although Sixty outstanding women agricultural scientists
detailed gender-disaggregated data are available only received AWARD fellowships in July 2010, and the proj-
very sporadically or not reported at all” (World Bank ect currently supports 180 African women working in
2009, 181). An innovative program that aims at increas- agricultural research and development who have com-
ing the numbers of females with higher degrees in pleted bachelor’s, master’s, or doctoral degrees in
Africa may be the beginning of a change in the gender selected disciplines. The fellows come from Ethiopia,
balance in academic and research institutions. Ghana, Kenya, Malawi, Mozambique, Nigeria, Rwanda,
African Women in Agricultural Research and Devel- Tanzania, Uganda, and Zambia.
opment (AWARD, http://awardfellowships.org) is a AWARD is a US$15 million, five-year project with
project of the Gender and Diversity Program of the plans to expand to a second phase starting in 2013. It is
Consultative Group on International Agricultural supported by the Bill and Melinda Gates Foundation,
Research (CGIAR). This professional development pro- the United States Agency for International Develop-
gram was launched in 2008 after a successful pilot in ment, and the CGIAR. AWARD partners with more
East Africa supported by the Rockefeller Foundation. It than 75 national agricultural research institutions.
Sources: Author.
rural space. At the apex of the system for AET are the terti- technical-vocational education and training” (ATVET) or
ary educational institutions such as agricultural universi- “vocational education and training” (VET), prepares tech-
ties or faculties and colleges of agriculture within compre- nicians in a variety of specializations in agricultural subsec-
hensive universities. Traditionally, higher agricultural tors. Some secondary schools offer agriculture as an elective
education produced graduates who found employment in (Tajima 1985), but in most developing countries these pro-
public agricultural research (see module 4) and extension grams have a checkered history, influenced by the qualifica-
programs (see module 3) and other technical services tions and experience of the teachers assigned to the subject
offered by ministries of agriculture. Over the years, as these and the motivation of the students who enroll. Probably the
public agencies greatly curtailed hiring, holders of agricul- most successful secondary agricultural education model is
tural degrees, diplomas, and certificates have been more the vocational agriculture program offered in largely rural
likely to seek employment with agribusinesses or with districts in the United States. The program offers academic
NGOs operating agricultural programs. and practical subjects in school and, through a supervised
Other institutions in the AET system include the youth organization (Future Farmers of America), helps stu-
polytechnics, institutes, or colleges that prepare technicians dents develop leadership skills and technical prowess by
at the diploma level (the postsecondary, subdegree level). participating in contests and undertaking a supervised proj-
This category of education, often termed “agricultural ect (box 2.2).
Future Farmers of America (FFA) was founded in 1928 ness); placement (the student gets a job on a farm or at
and brought together students, teachers, and agribusi- an agricultural business, school, or factory laboratory);
ness to solidify support for secondary agricultural edu- research and experimentation (the student plans and
cation. Today (circa 2011), the FFA has some 523,000 conducts a scientific experiment, usually related to agri-
members (38 percent are female) aged 12–21 in all 50 culture); or exploratory (the student attends an agricul-
states. Of these, 27 percent live in rural farm areas, tural career fair or creates a report or a documentary on
39 percent in rural nonfarm areas, and the remaining the work of a veterinarian or extension worker).
34 percent in urban and suburban areas. Now known as Through this program, more than 11,000 FFA advis-
the National FFA Organization, FFA—with its motto of ers and teachers deliver an integrated model of agricul-
“Learning to Do, Doing to Learn, Living to Serve”—is tural education that provides students with innovative
dedicated to making a positive difference in the lives of and leading-edge education, enabling them to grow into
students by developing their potential for premier lead- competent leaders. The FFA provides 23 national career
ership, personal growth, and career success through development events through which members are chal-
agricultural education. lenged to real-life, hands-on tests of skills to prepare
The FFA is an integral part of the secondary-level them for more than 300 agricultural careers. Agriculture
Vocational Agriculture program, which has three parts: is the largest employer in the United States. More than
classroom instruction, the FFA, and Supervised Agri- 24 million people work in some sector-related activity.
cultural Experience (SAE). Students develop their SAE Industry values the FFA program and its graduates, con-
projects in one of four categories: entrepreneurship tributes to the National FFA Foundation, sponsors pro-
(the student owns and operates an agricultural busi- grams, and provides individual scholarships.
Agricultural training, frequently delivered in training and feedback flow between institutions and allow for
centers or training institutes, is offered to public employees adjustments and improvements on a continuous basis. Agri-
as in-service training and/or to farmers as farmer training. cultural education and learning (AEL) is a variation on AET
Ministries of agriculture are usually responsible for agricul- that reflects a more student-centered approach to formal
tural training programs. Public extension services offer programs (Ochola and Ekwamu 2008).
training (largely to farmers) through formal presentations, In many countries, responsibility for education and
lecture-demonstrations, field days, crop and animal field training for agriculture and rural development has been,
trials, farm tours, and various other media. Public agricul- and continues to be, divided between ministries of agricul-
tural research systems provide educational opportunities ture and education. Typically, higher agricultural education
for farmers and extension staff, usually in the form of field has been the responsibility of the education ministry,
days combined with lectures. Public sector researchers also whereas training for agriculture and its subsectors has been
act as resource persons in formal, higher-level education the responsibility of the ministry of agriculture. In some
programs, work with extension staff to train farmers, or countries, the ministry of cooperatives is responsible for
provide in-service training for extension staff. providing training for a variety of cooperatives that deal
with a range of topics, including agriculture. Given the
increasing interest in farmer organizations (see module 1,
Formal AET
TN 4 and IAP 2) (especially as precursors to large, organized
Traditionally, agricultural education has been supplied and agricultural cooperatives), cooperative colleges are becom-
supported largely by the public sector. Although the various ing an important aspect of formal AET.
elements in the AET delivery chain are often referred to col- Whether it is part of a robust, well-integrated system or
lectively as a “system” (Bawden 1998, 1999; Rivera 2008), in not, agricultural education is weakened by the division of
many developing countries it is questionable whether these responsibilities among ministries, the isolation of individual
elements form a robust system in which communication ministries, and their failure to collaborate in designing and
In 1963, the Brazilian government took a high-level deci- Agricultural Research Corporation (EMBRAPA) to coor-
sion to build a human capital base for a modern agricul- dinate its national agricultural research program,
tural sector. With financing from the United States EMBRAPA continued to invest in human resources. It
Agency for International Development, four American launched a massive human capital improvement pro-
land-grant universities assisted four Brazilian universities gram that sent 500 agricultural researchers for PhD pro-
in strengthening BSc level training for a decade followed grams and spent 20 percent of its budget from 1974 to
by another four years of support for postgraduate educa- 1982 on training in Brazil and abroad (World Bank
tion. In 1971–72 more than 900 Brazilian graduate stu- 2007a, 39). Today, one-third of EMBRAPA scientists have
dents were studying agricultural sciences in United States a PhD, half have an MSc, and the balance have a BSc or
universities. This experience with building human capi- equivalent. The most important lesson from this experi-
tal in programs in agriculture is directly linked to politi- ence is that Brazil did not reduce public expenditure on
cal decisions by the Federal Government and the Min- its core agricultural institutions some 40 years ago when
istry of Education to pass the University Reform Act of foreign investment waned. Instead, by mobilizing high-
1968, which linked promotions to higher graduate level political support, Brazil built a strong human capi-
degrees and required academic staff to work full time. In tal base to sustain a globally competitive agricultural
1972, when the government established the Brazilian research and extension base.
Source: Author.
Note: EMBRAPA = Empresa Brasileira de Pesquisa Agropecuária.
1970s, funding for AET began to decline dramatically teachers and is weakened by poor cooperation between v of
(Willett 1998), overtaken by other development priorities. education and agriculture.
Numbers of AET specialists in many international organi- A 2005 review of investment in AET in projects sup-
zations and bilateral donor agencies decreased. Despite ported in Africa by the World Bank found that the same
pleas by numerous observers and organizations to govern- weak level of investment had persisted since the end of the
ments, donors, and universities to rehabilitate and reform 1970s (Rygnestad, Rajalahti, and Pehu 2005). One outcome
deteriorating agricultural education programs and facili- of the weaknesses and low investment in AET is the reluc-
ties, AET continued to drop even lower on the develop- tance of students to choose agriculture as their preferred
ment agenda. academic pursuit (Pratley 2008; Rivera 2008; Mulder 2010).
A number of generic weaknesses in the planning and In countries where higher education is at a premium, this
delivery of AET in developing countries have persisted.1 reluctance inevitably creates a situation where many of the
Briefly, these weaknesses include a lack of university auton- students who enroll in agricultural programs have a greater
omy, weak links to stakeholders, lack of accountability for interest in possessing an academic degree or certificate than
quality or employability of graduates, outdated curricula in making a career in agriculture.
and teaching approaches, weak training in practical skills,
the variable quality of programs, weak adoption of ICTs,
KEY POLICY ISSUES
and low remuneration of faculty and staff.
Diploma-level AET also exhibits weaknesses, including Sound policies are essential to address the recurring weak-
the absence of supporting policies, weak links to stakehold- nesses of AET systems, yet weak and fragmented AET sys-
ers, programs that fail to reflect labor-market needs, inade- tems cannot present a united front to government or policy
quate and inconsistent funding, and a shortage of skilled makers and gain support for increasing the effectiveness of
teachers/instructors. Agricultural training at the secondary AET. Policy guidance and support are needed above all to:
level, which is not universally offered, is often chosen as an Clarify the role of AET. Divided ministerial responsibility
“easy pass” by students. It also suffers from a lack of qualified for agricultural education, especially for public agricultural
Teaching Learning
Theory Theory and practical application
No student attachments Regular, organized, and supervised attachments
Inappropriate pedagogy Effective pedagogy tailored to subject matter and learner needs
Little use of external teaching resources External resources used in team teaching to expand knowledge and skill pool
Little use of ICT Use of appropriate ICT the norm
Technical training now Future directions
Heavily supply driven Mostly demand driven
Managed by the public sector Managed through public-private partnerships
Poorly qualified and remunerated instructors Qualified and fairly remunerated instructors
Qualifications not certified by professional bodies Certification ensured
Equipment in short supply and outdated Equipment/practice areas obtained through public-private partnerships
Management of human resources now Future directions
Weak human resource management leadership Qualified human resource managers and trainers
Selection of trainees not based on need All selection based on need and future tasks
Training needs assessments are not undertaken Needs assessments are standard procedure
Little supervisor/manager involvement Supervisors/managers consulted and involved
No evaluation of trainee performance on the job On-the-job performance measured
Trainers not trained to instruct/teach Qualified trainers standard
Source: Author.
Effective innovation systems need technical specialists require managerial, entrepreneurial, leadership, nego-
to investigate and elucidate the complex technical tiation, intellectual property law, facilitation, and part-
aspects of innovations. Effective innovation systems nering skills that educational institutions rarely cover.
also require a cadre of professionals whose mindset To be capable of fostering agricultural innovation,
and skill set extend beyond a particular specialization graduates of the various levels of the AET system
to encompass (for example) markets, agribusiness, should possess a wide variety of skills, which may
intellectual property law, rural institutions, rural include:
finance and credit facilitation, systems analysis, and Basic skills and digital literacy: Reading, writing,
conflict management. To foster these capacities, uni- numeracy, and the ability to use digital technology and
versities must reform their curricula to include innova- access and interpret information.
tion systems approaches and shift toward more client- Academic skills to pursue disciplines in advanced
oriented, vocational courses. educational institutions, such as languages, mathemat-
The demands placed on agricultural education pro- ics, history, law, and science.
grams are shifting so rapidly that programs in many Technical skills: Academic and vocational skills
locations cannot produce human resources capable of required by specific occupations and knowledge of cer-
the sorts of innovation that the world’s agricultural tain tools or processes.
economies require. To respond to these requirements, Generic skills such as problem solving, critical and
AET programs will need to balance a highly technical creative thinking, the ability to learn, and the capacity
curriculum with training in a wide range of skills and to manage complexity.
competencies. Researchers, extension agents, and other “Soft” skills such as the ability to work and interact
service providers will need to bolster their professional in teams, in heterogeneous groups, and across cultures;
training with skills that support interaction with communications skills; motivation, volition, and ini-
diverse actors to collaboratively address new challenges tiative; and receptiveness to innovation.
and opportunities and to share information and Leadership skills: Building and leading teams,
knowledge. For example, extension agents need to coaching and mentoring, lobbying and negotiating,
know how to build social capital by organizing rural and coordinating, with a clear understanding of ethical
actors, provide diverse services from technology trans- behavior;
fer to marketing, and serve as facilitators or intermedi- Managerial and entrepreneurial skills to put inno-
aries among actors (see module 3). Researchers, rather vations into practice and enable organizations to adapt
than sequestering themselves in labs and field stations, and respond in competitive environments.
Despite the evolution from traditional lecturing to inter- Meet recognized standards for quality. Investing in
active, student-centered learning, many AET systems still accreditation or certification provides universities and
operate in the “chalk-and-talk” era. Some systems of higher training institutes an incentive to raise their academic quality
agricultural education rely on dated lecturer’s notes as the to recognized standards. Investments that develop close
only teaching aid, and some vocational and technical pro- working relationships with preeminent educational
grams cannot provide students with an opportunity to institutions are another means of raising academic
practice on equipment or use laboratories as they learn. standards. For institutes of higher education especially, these
Even when teachers and instructors are willing to use ICTs, alliances lead to collaborative learning programs involving
budgets are insufficient to purchase them, or unreliable information sharing, staff and student exchanges, and joint
supplies of electricity make their use unpredictable. Invest- research. The local institution, its staff, and its graduates
ments in institutional or curriculum reform for tertiary gradually become much stronger contributors to the AIS.
agricultural education, agricultural TVET, or in-service
training should include provisions for introducing and/or Provide a regional resource for advanced degrees.
updating ICTs and training staff to use them. Given the limited resources in many AET systems, many
Many AET systems in developing countries do not The International Institute for Communication
employ even low-level ICT in the teaching/learning and Development (IICD), a nonprofit foundation
process. Reasons for this include poorly trained teaching that specializes in ICT as a development tool, has
staff who have not been exposed to ICT in their training, helped to introduce a number of ICT solutions in the
lack of funds to purchase ICT, unreliable power access, education sector, which indicate the potential for ICT
and no supervisory pressure to adopt and use ICT. ICT within AET. For example, teachers in Burkina Faso
can improve the quality of teaching and learning and learned to build websites, find materials on the web,
raise the quality and relevance of AET for greater impact and use video, web publishing, and other applications
within the AIS through a number of means: to improve their lessons. Social media training helped
these teachers start an active online community for
■ Improved competencies among teachers. Teachers sharing teaching materials with schools across the
and trainers are trained in basic ICT skills and ICT- country. In a similar project, Bolivian teachers
based teaching methods. learned to create videos and CD-ROMs to support
■ Improved competencies among graduates. The lessons; its success inspired the Bolivian government
effectiveness and employability of AET graduates to launch a national program to put computer labs in
improves because they possess ICT skills. 1,000 schools. At the Copperbelt College of Education
■ Better educational materials. ICT enables teachers in Zambia, one initiative requires that all graduating
to access information sources and create, update, teachers be able to prepare lessons digitally. ICT skills
and share learning materials. also benefit vocational training and help make youth
■ Distance education and e-learning. ICT is integral more employable. In Zambia, IICD helped set up a
to creating opportunities for distance and electronic computer lab in a youth center, where young people
teaching and learning. learn basic ICT skills and access the web. As users
■ Improved education administration and manage- learned more about the potential of ICT, the com-
ment. Throughout the AET system, ICT enables puter lab began to offer additional services, including
more effective and efficient management of human secretarial and marketing support. Now ICT is also
and financial resources and monitoring of student used to support training for tailors, carpenters, and
performance. mechanics.
Source: Author and www.IICD.org.
universities cannot provide teaching and research objectives. Changes in AET systems, whether sweeping or
opportunities at the level of excellence needed to produce piecemeal, do not always conform to the expected process or
graduates who can assume leadership roles in the AIS. timeframe, and practitioners should plan for adjustments.
Investments to create a center of excellence within a region Depending on the location, capacity, commitment, and lead-
can provide opportunities for qualified candidates from ership for change, the time focus may shift to require longer-
smaller or less-well-endowed educational systems to pursue than-anticipated support; in other cases, reforms and changes
studies at a higher level. These candidates, on returning to may proceed faster than expected.
their academic bases, can contribute to the development of
new knowledge and enhance the local AIS. See also module Long-term investments (five or more years;
4, TN 5 for lessons on organizational change. sometimes much longer). Regardless of whether the
pressure for change is internal or external, long-term
investments to support change in AET systems largely
Long-, medium-, and short-term opportunities
involve wide reforms. Such investments require
to revitalize the AET system
considerable preparation in the form of discussion, creating
The discussion here indicatively classifies investment a vision for AET (see also module 7, IAP 4 for lessons on
opportunities as long, medium, and short term to empha- a vision-building process), stakeholder agreements,
size the commitment required to achieve various kinds of catalyzing inputs from facilitators, and field visits to
Source: Author.
Note: ATVET = agricultural technical–vocational education and training; HRM = human resource management.
122
system and in the agricultural sector. The policies that or the path (direct, indirect) taken, all efforts to foster
guide AET must be aligned with agreed recommenda- change require consensus among stakeholders, support for
tions for reform. change at the highest levels, and leadership to sustain
■ Pursue an agenda of agreed, specific reforms within change over time.
agricultural universities, faculties of agriculture, and It is critical to remember that investments to reform agri-
agricultural colleges to revitalize management and cultural education, especially at the higher levels, are also
governance, increase autonomy, improve teaching meth- long-term investments in a more robust AIS and in greater
ods, update curricula, ensure financing, strengthen rela- productivity throughout the agricultural sector. With this
tionships with clients, encourage the use of ICTs to enrich ultimate goal in mind, this section introduces alternative
learning, and focus on stakeholders’ needs as well as approaches to reforming and modernizing higher agricul-
external influences, such as climate change and global tural education, lists the main investment elements in each,
trade in agricultural commodities. and presents examples of good practice.
■ Institutionalize reforms to ensure that reforms are
agreed by decision makers and university administra- Comprehensive (“big bang”) reform
tors, clearly documented, approved by the university The most direct path to reform, often catalyzed by external
governing body, incorporated in guidelines and policy pressure, leads the agricultural university or faculty of agri-
instruments, and available to all stakeholder groups. culture to compare stakeholders’ expectations with program
■ Attain accreditation of reformed universities and their offerings and use the gaps between the two to create an
programs to give them, their staff, and their degree pro- agenda for change. The change agenda needs buy-in from
grams national, regional, and international credibility. university management and, when implemented, needs to be
■ Base curriculum reform on consultation with stake- institutionalized through policy, regulations, and formal
holders to ensure that the resulting degree and diploma recognition by the ministries in charge of education and/or
programs are relevant. agriculture. This “big bang” reform requires leadership and
■ Link curriculum reform closely to pedagogical reform, prior agreement among a number of actors, including uni-
especially to adopting a student-centered, practical versity management, faculty, and staff; decision makers at the
approach to learning. resource allocation and policy levels; stakeholders who
employ graduates; and students and their families. The main
elements of investments in this type of reform include:
INVESTMENT NEEDED
The heterogeneity of AET systems across the world suggests Facilitating dialogue between the main stakeholders to agree
that the kind of investments required will be similarly on the need for and scope of the intended reforms and to
diverse. Reforms will need to be tailored to the prevailing assign responsibility for each reform step and activity.
situation, including the needs of specific groups of stake- Undertaking a needs assessment (skills gap assessment)
holders (farmers, processors, marketers, and consumers of that reflects differences between the capacity of present
agricultural commodities, for example). Innovations in the graduates and the expectations of those that hire them.
management, relevance, and quality of higher agricultural Analyzing the outcome of the needs assessment and design-
education will depend on factors such as the quality of lead- ing a change agenda.
ership at a given university, the incentives to undertake Formulating a strategy for implementing the change agenda
reform, the university’s capacity to accept that gaps may and supplying the facilitation capacity to move the strat-
exist between current programs and standards and stake- egy forward.
holders’ expectations and needs, and the level of support Convening stakeholder meetings to apprise all involved with
from decision makers who finance and guide education and progress and resolve difficulties in implementing the
agricultural development and management. Reforms may change agenda.
encompass single or multiple universities; they may be long Finalizing the list of change-promoting activities and clearly
or short term; and they may be funded by government specifying their implications for governance, organiza-
and/or external donors. tions, personnel, and budgets.
The impetus for reform in AET can come from different Presenting the detailed change strategy to university man-
sources, and organizations can pursue many different paths agement and to policy and decision makers at high levels
to reform. Regardless of the source of pressure for reform in the government.
MODULE 2: THEMATIC NOTE 1: REFORMING PUBLIC AGRICULTURAL EDUCATION AT THE TERTIARY LEVEL 123
Undertaking preparatory activities to develop a refocused A concrete, stepwise example of a complex, long-term,
academic program, such as leadership strengthening, national effort to reform higher agricultural education
curriculum adjustment, improved pedagogy, administra- comes from China (box 2.6). In addition to China, a diverse
tive capacity enhancement, information technology group of countries has undertaken reforms in higher
upgrading, strengthened links to stakeholder/employers, agricultural education. India implemented a large, externally
and community outreach. funded project to reform its State Agricultural Universities
By the late 1980s, as China gained momentum in mov- constraints identified and integrate them with national
ing toward a market economy, the higher education sys- institutional reform. This step was taken jointly in 1993
tem for agriculture (created in the 1950s in the image of by MOA and the Ministry of Education (MOE), with
the Soviet system) recognized that its graduates would support from central government. The second step,
not have the skills to perform well in the changing labor undertaken from 1993 to 1995, was to initiate pilot
market. Developed for a planned economy and operat- reforms at some universities. These pilots, which focused
ing under a centralized administrative system, China’s on internal structural reform and merging institutions,
institutions of higher agricultural education had little tested the reform concept and contributed to an action
autonomy. They had no control over staff recruitment plan for large-scale reform in higher agricultural educa-
and finances. They struggled to accommodate to the tion. In the third step, the agricultural education institu-
changes brought about by the market economy. tions, MOA, and MOE synthesized their experiences with
Catalysts of reform. External and internal factors cat- the pilots. Based on the outcome of this learning exercise,
alyzed the decision to reform China’s higher agricultural MOA formulated an action plan for launching the
education system. The three principal external factors national reform in higher agricultural education in 1996.
were: (1) better-qualified, better-skilled graduates were The fourth step was to implement the reform throughout
needed to solve emerging technical and managerial prob- China from 1996 to 2000. That process was guided by
lems in the agricultural sector; (2) government pressure MOA and MOE in cooperation with provincial govern-
to improve the efficiency of investments in education and ments. In some cases, the reform process continues.
reduce costs; and (3) lessons from reforms in other coun- Stakeholders and their contribution or involve-
tries. Internal pressure for reform included: (1) demand ment. Many institutions collaborated and cooperated
from higher education institutions to gain greater in the reform. The MOA helped formulate the reform
authority to plan agricultural education, develop curric- strategy and action plan. The MOE was involved in
ula, and manage personnel; (2) the need to rationalize the designing and implementing the curriculum reform
use of academic staff and bring about efficiencies in and merging institutions. Central government partici-
teaching and research; (3) the realization that teaching pated in the earlier stages, and provincial governments
staff and institutions had to merge if they were to deliver participated in merging institutions. Employers sup-
graduates with the desired skills; (4) the need to use agri- ported curriculum and employment reform, and
cultural education infrastructure more efficiently; and students and their parents pressured the higher agricul-
(5) the need to reduce staff and personnel costs. tural education institutions to improve internal educa-
Steps in the reform process. Reform began toward the tion management and bring about financial reform.
end of the 1980s with an analysis of internal and external Staff of agricultural education institutions participated
problems and constraints that emerged from implement- in planning and implementing internal structural
ing reforms in the national economic system. This reforms, and education research institutions provided
process—initiated mainly internally by the agricultural concepts and guidance with regard to the reform.
education institutions and the Ministry of Agriculture Changes emerging from the reform. The major
(MOA)—was informed by the outcomes of a conference changes emerging from the reform included:
and several meetings. Reforms were implemented in four
main steps. The first was to formulate a reform strategy, • decentralizing the administrative structure to the
concept, and guidelines to address the problems and provincial government level and giving more
(Box continues on the following page)
decision-making responsibility to higher agricul- New teaching methods introduced by the College of
tural education institutions; Rural Development set a good example for further
• changing curricula and pedagogical approaches; reforms in teaching methods for other faculty.
changing student enrollment; aligning employment Lessons learned. Some aspects of the reforms were
patterns more closely with labor-market expectations; very specific to the national context. For example, once
• changing internal administrative structures to reform was agreed upon, it proceeded according to plan.
enable better recruitment and motivate staff; and All key actors cooperated in meeting a major economic
reforming logistical systems (leading to efficiency challenge that demanded better-educated and trained
and financial savings). graduates from higher agricultural education institutions.
Even amid strong collaboration and support, the
Note that no gender reforms were needed. The reforms took a decade to achieve their main objectives,
institutions involved did not have gender discrimina- and the process continues to evolve. The lesson is that
tion in recruitment or promotion of professional if higher agricultural education is to be reformed in a
staff. comprehensive way, the investment in time and contin-
Other results of reform. Institutions involved in ued support will be substantial. In China, even with
higher agricultural education gained more autonomy in strong agreement over the reforms, the reforms did not
implementing and managing education and research always work smoothly, especially when institutions
and in balancing agricultural market needs with national were merged and the rapid rise in enrollment placed
education guidelines. A performance-linked staff high pressure on teachers and on space.
recruitment and remuneration system was integrated Reforms had winners and losers among educational
into the management system for these institutions. Edu- institutions and staff as the entire system was made
cation efficiency improved significantly. Funding also more cost-effective. Notably, reforms in student enroll-
improved, because student fees were raised and enroll- ment and placement systems did not seem to improve
ment rose by 10–15 percent. Curricula and teaching employment among graduates, who found it more dif-
methods are better, more flexible, and more student- ficult to gain employment owing to greater competi-
friendly since the reforms took place. The establishment tion for jobs. Government funding is still less than
of a Rural Development section (faculty) has con- required, especially for higher agricultural education
tributed to meeting the challenges of rural development. institutions in poorer areas.
Source: Liu and Zhang 2004.
(IAP 1); the established, respected Wageningen Agricultural stakeholders (IAP 3). Curriculum reform can be undertaken
University in the Netherlands made major adjustments to directly as a project within the university or faculty of
management and curricula when faced with declining stu- agriculture (see TN 2) or less directly by strengthening
dent numbers and imminent restructuring (IAP 2). links with rural communities as in the cases of Indonesia
(box 2.8), Thailand (IAP 5), and Africa (IAP 4). In the less
direct approach, when university research and teaching staff
Curriculum reform
and students become involved with farming families and
An often effective though less direct approach to institu- communities, their understanding of agricultural and rural
tional reform can begin with curriculum change across problems improves, giving rise to innovative solutions and
degree programs. TN 2 discusses curriculum reform in to curricula that are relevant and that reflect the real cir-
detail, but here the point is that while curriculum change is cumstances of rural communities. Once the value of
being implemented, often it exposes other organizational reforms in the curriculum or graduate-level courses is rec-
and academic problems and leads to further and deeper ognized and appreciated, a movement for deeper reform
reforms. Egypt provides an example of this type of invest- arises from within the organization.
ment. Five Egyptian universities undertook radical curricu- Another approach to curriculum change is to repackage the
lum and pedagogical change and forged strong links with traditional agricultural degree as a number of better-focused
MODULE 2: THEMATIC NOTE 1: REFORMING PUBLIC AGRICULTURAL EDUCATION AT THE TERTIARY LEVEL 125
programs that attract student interest and support. Ireland include civics, ethics, communications skills, and entrepre-
offers a recent example of such an approach. In response to neurship.
declining student numbers, Ireland’s public universities Box 2.7 describes the main investment elements of direct
changed their enrollment procedures during academic year and indirect curriculum reform. The elements of direct
2000/01 so that new students could apply to nine agricul- reform echo the experience in China (described in box 2.6)
tural degree programs (each with a specific focus) rather and India (IAP 1). The elements of indirect reform echo the
than to one generically defined “agriculture” program. This experience in universities such as Chiang Mai University
change greatly increased the number of students choosing (IAP 5) and even (on a smaller scale) in postsecondary edu-
agriculture, an increase that has been sustained (Phelan cation (in Timor-Leste, IAP 8) and in-service training (in
2010; MacConnell 2010). Ghana and beyond, IAP 4).
Curriculum enhancement to better prepare graduates
for the demands of the modern agriculture sector is
Reforms catalyzed by increasing the number and
another method of supporting curriculum change.
quality of graduates with higher degrees
Ethiopia launched a Rural Capacity Building Project (2006)
that focused on new, university-level courses that would Yet another indirect approach to reform is to invest in new
respond to labor-market needs. The courses added would or upgraded doctoral or master’s degree programs that
Box 2.7 Main Elements of Investment in Direct and Indirect Curriculum Reform
The elements of investment in direct curriculum ■ Adjusting or revising curricula, based on the results
reform include: of M&E and user feedback.
■ Facilitating dialogue between the main stakeholders The main investment elements in indirect curriculum
to reach agreement on the need for and scope of the reform through community outreach include:
intended reforms and assign responsibility for each
reform step and activity. ■ Facilitating dialogue between university manage-
■ Organizing and facilitating a series of meetings ment, faculty, and community leaders to agree on
between university managers, academic staff, and the need for university-community cooperation
representatives of key stakeholder groups to identify and on the operational approach.
gaps between stakeholders’ expectations and the ■ Agreeing on the details of the university-commu-
quality of graduates from the academic entity. nity program, including its goals and the responsi-
■ Undertaking a skill gap analysis to better understand bilities of both sides.
what kind of curriculum change must be considered. ■ Arranging for university staff and students to visit
■ Reviewing and updating the curriculum, using and reside in communities.
external expertise if needed. ■ Adjusting curricula to incorporate community
■ Packaging revised curricular materials to suit a vari- involvement in the academic program.
ety of learning styles—for example, offer material in ■ Facilitating staff and student experiences and obser-
several media such as print, CD-ROMs, DVDs, vations in communities and translating these activ-
video, learning management systems (Moodle is ities into processes for developing technical and
open-source software to create online learning sites) social solutions.
and formats (textbooks, teachers’ aids, case studies, ■ Organizing meetings with communities to share
and so forth). results of university-community interaction.
■ Pedagogical upgrading for teaching/facilitating ■ Accommodating feedback from university-
staff. community experiences in an adjusted curriculum.
■ Designing a monitoring and evaluation (M&E) ■ Funding the logistical arrangements for student and
instrument and implementing M&E. faculty involvement in community links.
Source: Author.
Box 2.8 The Pursuit of Relevance Spurs Reform in Bogor Agricultural University, Indonesia
MODULE 2: THEMATIC NOTE 1: REFORMING PUBLIC AGRICULTURAL EDUCATION AT THE TERTIARY LEVEL 127
the Secondary Vocational Agricultural Education Program the role of higher education in agricultural development,
undertook a three-year (1996–99) program, Reinventing give educational institutions the autonomy to provide
Agricultural Education for the Year 2020, with funding from high-quality education and cooperate with stakeholders,
the W.K. Kellogg Foundation (National Council for and guarantee the financial resources to underpin compre-
Agricultural Education 2000). See also module 7, TN 3 and hensive reforms.
IAPs 4 and 5 for foresighting and visioning.
LESSONS LEARNED
Designing new agricultural education programs
An important general lesson is that the reform of tertiary
Occasionally opportunities arise to create a new educational agricultural education is a complex undertaking, involving
institution, giving designers the freedom to develop a cur- numerous actors with varied interests in the outcomes and
riculum and adopt pedagogical approaches that best suit the requiring considerable commitment on the part of reform-
new institution’s mission and goals. New, privately funded ers, the university or other institutions involved, stakehold-
universities were established in Costa Rica (IAP 6) and ers, and decision makers. In many respects, reform needs to
Honduras (in Zamorano, to produce graduates with the be continuous if higher agricultural education is to respond
technical and entrepreneurial capacity to work as self- to needs that will always be changing. The following sec-
directed entrepreneurs or as employees in agribusiness, the tions discuss the conditions needed for reform to succeed,
public sector, or NGOs). factors that influence the level of investment in reform, and
more specific lessons from reforms undertaken over the
years.
POTENTIAL BENEFITS OF INVESTMENTS TO
REFORM HIGHER AGRICULTURAL EDUCATION
Conditions for reform
Reform that is supported by the academic entity and taken
to a satisfactory conclusion can have a number of important Investment in AET reform is appropriate when the
impacts on the effectiveness of the innovation system. As reform/change, regardless of its source, is supported from
mentioned, higher agricultural education can contribute within the system. Even then, high-level decision makers,
more effectively to agricultural and rural development by university administrators, and other key stakeholders must
producing human resources who can solve problems related clearly understand that reforming higher agricultural edu-
to technical agriculture, social issues, and external factors cation is a long-term process that must be seen to its con-
such as the changing climate and globalizing markets. The clusion. Experience indicates that the length of the process
AIS functions better, because graduates are better at listen- depends on where the reforms are undertaken, but periods
ing, analyzing technical and social situations, proposing of 10 to 20 years are not unusual. In fact, if the reform is
solutions, and interacting well with all actors in the AIS. truly successful, the change process continues as the higher
Investments in higher education foster greater scope in agri- education system monitors changing needs for knowledge
cultural research systems to identify and internalize com- and skills and encourages organizational responses on an
munity issues and problems and make them part of the ongoing basis. In other words, a short-term project
research agenda. Finally, investments in higher education approach to reforming major educational entities or an
can endow extensionists with the technical and soft skills to entire system is unlikely to have a lasting impact.
build a better two-way bridge between researchers and their Another important condition for reform (recall the
rural clients, because extensionists become more proficient example from China) is that the ministries in charge of edu-
in identifying, analyzing, and communicating issues and cation and agriculture must agree on the responsibilities of
technical responses. each ministry for the reformed entity and must be willing to
modify those responsibilities if the assured future of the
university is at stake.
POLICY ISSUES
Decision makers and the higher education entity must
The policy issues that apply to AET in general (see the mod- also understand that change will almost certainly include
ule overview) are relevant for reforming public agricultural greater autonomy for the university. The lack of autonomy
education at the tertiary level. Such policies would clarify is a key generic weakness of higher agricultural education. It
MODULE 2: THEMATIC NOTE 1: REFORMING PUBLIC AGRICULTURAL EDUCATION AT THE TERTIARY LEVEL 129
Box 2.9 Key Steps in the Reform of Higher Agricultural Education
The key steps in the reform of higher education ■ A timeframe for implementing the change agenda,
include: the human and other resources requirements, and
cost estimates are produced.
■ Decision makers agree on the reform strategy and ■ The reform proposal is presented to decision mak-
its content, which is publicized to university/faculty ers for approval and funding.
administrators, staff, and other key stakeholders. ■ The change agenda is implemented. In some
■ A timetable for the reform is drawn up. It identifies instances, the strategy is piloted in a limited number
tasks and responsibilities in detail for all stakeholder of locations in the AET system. Later, reforms are
groups. scaled up across the system.
■ Academic programs are analyzed with the help of ■ As reforms proceed, the process is adjusted, based
facilitators. on lessons learned.
■ Consultations with key stakeholders are conducted. ■ Decision makers formulate appropriate policies to
■ Gaps are identified between current program con- support the reforms.
tent and stakeholders’ needs and expectations. ■ Reforms are institutionalized within the higher edu-
■ A change agenda is drawn up to bridge the gaps. cational institution.
Source: Author; Liu and Zhang 2004.
The capacity of organizational units to implement changes should be negotiated to ensure that essential
tasks in the reform process must be assessed (See also reforms can be accommodated. This critical issue is dis-
module 7, TN 2 in particular) before it starts. Investors cussed in detail in TN 4. Once stakeholders agree on the
need to understand the rules that govern administrative scope of the reform and understand the commitments
and structural change in public entities. Proposed reforms needed, a series of logical steps must be taken to develop
in the AET system should either fit the existing rules, or and implement a practical reform agenda (box 2.9).
131
may be forced to confront and correct the governance, A critical area for support is to ensure that the new
administrative, and academic weaknesses that prevent it curriculum reflects and improves links to stakeholders in the
from meeting the needs of stakeholders in the agricultural agricultural sector. Such links have been weak in AET in devel-
sector. oping countries. Curriculum change places new pressures on
administrators and faculty, and investments in capacity build-
ing are needed for these groups to cope with new and more
INVESTMENT NEEDED
intensive demands from stakeholders and students. Additional
The specific investments that make agricultural curricula investment will be required to establish a mechanism that
more relevant can be divided into those that catalyze cur- ensures continuous contact with stakeholders and reviews and
riculum reform and those that support the individual activ- analyzes feedback to adjust the curriculum.
ities through which a curriculum is revised and integrated One of the most important opportunities that arise dur-
into academic programs. Although external actors—whether ing curriculum reform is the opportunity to use stakehold-
they are government, donor, or other stakeholders—can ers as external learning resources. The wealth of knowledge,
catalyze the decision to revise the curriculum, the AET insti- skills, and goodwill for agricultural education among most
tution itself must assume the role of champion. Internal stakeholder groups can be captured and presented to stu-
leadership that mobilizes faculty, staff, and key stakeholders dents in the classroom or at practical work sites. A signifi-
in favor of curriculum change is critical to success. cant means of improving links between the university and
Investments for catalyzing reform include: external learning resources in the agricultural sector is to
develop practical skills programs in which students are
■ Support for stakeholder interactions that examine the attached to stakeholders. To initiate and manage these pro-
relevance of the present curriculum to labor-market grams, support is needed to visit field sites where such
needs. schemes have been implemented successfully and, based
■ Resources to ensure that a strategy for undertaking cur- on these visits, to design a local attachment program.
riculum change is developed. Next, the program concept has to be shared with potential
■ Investments that support the curriculum change strategy participants—such as farm owners and agribusinesses (see
may include: also module 5 and module 3, TN 2)—to further define and
■ Support for staff to design, develop, and produce new establish the program. Once agreement to initiate the pro-
content for the curriculum and the corresponding learn- gram is reached, it is vital to clearly state the terms under
ing methods and materials (IAP 3 provides an example which it will be implemented, including statements of the
from the Arab Republic of Egypt). responsibilities of trainees, hosts, and the university or edu-
■ Training for teachers, instructors, and facilitators to cational institution. The issue of cost sharing must be part
ensure that they are comfortable with the new material of the attachment program design and must be agreed in
and have the confidence to guide students in a learning negotiation with attachment site hosts.
rather than a teaching mode. As a final note, it is important to recognize that all cur-
■ Support for teaching and facilitating staff to learn to use riculum change initiatives will lead to the realization that
ICT effectively in teaching, learning, and more effective some aspects of implementation require investments
communication in the wider AIS. beyond amending or updating content and packaging.
■ Training to ensure that practical sessions are planned and
implemented effectively (see the discussion that follows).
Staff and students who are unaccustomed to practical POTENTIAL BENEFITS
skills programs will require orientation. The programs Curriculum change can be undertaken directly, with the
themselves will require added inputs to ensure that they academic institution and the involvement of key stakehold-
meet high standards and are delivered well. ers and faculty, or indirectly through student and faculty
■ Faculty and staff may need to be introduced to the suc- links to rural communities, which channel real issues in
cessful use of external resource persons for enriching rural livelihoods back to the university, where they influence
academic programs (see the discussion below). the research program and curriculum. Either way, curricu-
■ Support for university-community interaction to foster lum change can have a number of impacts.
curriculum change indirectly (see the section on “Poten- Decision makers as well as prospective students and
tial Benefits”). employers come to see higher education institutions as a
Box 2.10 Regional Universities Forum for Capacity Building in Agriculture: Fostering Capacity for
Innovation and Adaptation among Students
The Regional Universities Forum for Capacity Building donors, including the Bill and Melinda Gates Founda-
in Agriculture (RUFORUM) is a consortium of 25 agri- tion, have made grants to the organization. Fundraising
cultural universities and faculties in Eastern, Central, will be key to the consortium’s future, as donor grants
and Southern Africa. To date, its main activity is to offer will eventually end.
a small grants program for MSc studies in agriculture, Under its competitive grant program for MSc stu-
although the program is being expanded to include dents, RUFORUM awards around US$60,000 to enable
doctoral studies. Through its community action two students to work under faculty supervision for two
research program, RUFORUM also provides grants for years. Relevance of the studies to African agriculture is
strengthening the links between rural communities and a key criterion in making the awards. Each MSc thesis
member universities. RUFORUM’s mission is to “foster must focus on a topic of local importance for agricul-
innovativeness and adaptive capacity of universities tural development.
engaged in agricultural and rural development to RUFORUM provides MSc students with field-
develop and sustain high quality in training, innovative tested, problem-solving skills that many African uni-
and impact-oriented research, and collaboration.” versities are still unable to provide. During the first
RUFORUM was originally sponsored by the Rocke- semester of year two of the study program, students
feller Foundation and covered 12 universities in Eastern are based in the field and their work is supervised in
and Southern Africa. It was established as a consortium several visits by the faculty supervisor. After five
under African ownership and management in 2004 and years of experience, RUFORUM has succeeded in
is registered as a nongovernmental organization in connecting graduate students directly with farmers,
Uganda with a secretariat in Kampala. Each member rural communities, and the reality of African
university pays an annual fee and several international agriculture.
Demand for curriculum change articulated by the AET sys- Important lessons from previous attempts at curriculum
tem and supported by key stakeholders is an important pre- change concern the impetus for change (who demands
condition for gaining support from the ministries in charge change, and who supports it); the steps that must be fol-
of education and agriculture as well as from planning and lowed in the change process; and the possibility that cur-
finance decision makers. In turn, those stakeholders play a riculum change will reveal the need for further reform. Cur-
crucial role by clarifying the policies and channeling the riculum reform is not a one-off activity. To be meaningful,
resources that will support change. curriculum changes must continue to be updated as tech-
Curriculum change has implications for the administra- nological innovation develops new approaches to produc-
tors, staff, students, and external stakeholders of higher ing, storing, processing, and marketing agricultural prod-
educational institutions. These institutions, as bureaucra- ucts. Curriculum change must be institutionalized in AET
cies, are often slow to agree to change. Change often pro- systems and given the approval and recognition that ensures
ceeds slowly, caused by the perception that it is not the sustainable, continuous evolution of the curriculum.
approved at higher levels of government, that the old cur-
riculum is good enough, that incentives to change are unat-
Impetus for change
tractive, and that, given time, the pressure to change will
decrease. Policies are required to support curriculum As noted, the need for change may be articulated by
change, to make it clear that change is a priority, that employers who are dissatisfied with the graduates of agri-
administrators and staff of educational institutions are cultural degree programs, signaled by a serious drop in
required to implement the changed curriculum as part of applicants to the degree program, or emerge from an inter-
their terms of reference, that stakeholders’ input will con- nal awareness that the degree program is obsolete. Even if
tinue to be integral to evaluating the impact of the new cur- the pressure for change comes from one or more external
riculum on graduates’ performance, and that adequate groups of stakeholders, support for change must come from
funding will be made available to make the changed cur- inside the higher educational institution as well.
riculum work.
Some of the most important policies encourage educa- Steps to bring about curriculum change
tional institutions to monitor the quality and relevance of
their programs in relation to the evolving needs of agricul- The previous section refers to some of the steps in curricu-
ture and rural development. Such policies provide guidance lum change, but it is important to list them in their entirety.
on governance of the educational institution, especially the Based on experience with curriculum change in a variety of
role of stakeholders in providing feedback on graduates’ settings, these steps appear to work well, although processes
readiness for the modern agricultural workplace and in will differ from one place or time to another:
alerting the institution to changing requirements for knowl-
edge and skills. ■ All key stakeholders participate in describing shortcom-
High-level decision makers outside higher educational ings in the current graduate knowledge and skill mix
institutions must be aware that they require a continuing and/or needs not identified by educational institution.
flow of information to update or create policies that give ■ Draw up a clear “roadmap” for implementing curricu-
the institutions the authority to act. Managers of educa- lum change and make it available to all.
tional institutions must establish systems that continu- ■ Clearly spell out roles and responsibilities of the educa-
ously and critically evaluate their programs (especially tional institution and other stakeholders in the change
needs assessments that capture changes in the agricultural process.
sector). This information, regularly provided to policy ■ Describe incentives for participation in the change
makers, should help to prevent educational policy from process (for example, capacity building for faculty and
falling out of step with the needs of agricultural education administrators or out-of-pocket expenses for stakehold-
institutions and their stakeholders throughout the agricul- ers who have to travel to participate in meetings).
tural sector. An essential policy, of course, is one that allo- ■ Select milestones for reviewing progress in curriculum
cates funds to support change and ensures that such fund- change. Such milestones could include: presentation of
ing is sustained. the analysis of the needs assessment; drafts of new
136
qualified instructors, and a low student-to-instructor ratio. processing machinery, and monitor food quality and
While rapidly industrializing countries are investing heavily safety issues (see also module 6, TN 5).
in technical education and training to meet high demand for In addition, employers in many economies seek workers
engineering and IT workers, public investments in formal who possess behavioral skills such as teamwork, diligence,
agricultural diploma education (usually classified as ATVET) creativity, and entrepreneurship, which are essential to
or certificate training (described as VET) vary and are thrive in rapidly evolving, technologically driven, and glob-
unpredictable. The unevenness of investment gives rise to alized economies (Blom and Cheong 2010). For this reason,
fluctuating student enrollment, poor staffing, weak program improvements only in workers’ technical and vocational
content, and a variable supply and quality of graduates. skills will not always meet employers’ needs. Systems that
As mentioned, modern agriculture emphasizes greater build skills will also have to ensure that these added behav-
productivity, value added activities, and agribusiness. ioral attributes are in place (Blom and Cheong 2010). Any
Agricultural products increasingly are consumed by realistic attempt to train technical personnel who can meet
growing urban populations or, in the case of high-value these various needs for 21st century agriculture must revi-
crops, sold in international markets. The focus on inten- talize the knowledge and skills provided by traditional
sive farming and sustainability has created management ATVET and VET programs (box 2.11) and reform the gov-
complexity, altered energy requirements compared to tra- ernance and management of training colleges and institutes.
ditional agriculture, and led to unforeseen consequences
for human and animal health. The modern agricultural
INVESTMENT NEEDED
sector is also quite knowledge intensive. It demands
highly skilled technical personnel who can manage a vari- Investment in technical education and training for agricul-
ety of farms and production units, run processing enter- ture has, like investment in all AET, been low. Much recent
prises, service market chains, manage and repair farm and World Bank funding for formal TVET is industry-related,
Box 2.11 Producing Technical Human Resources for the Agriculture Sector in Australia
In Australia, technicians for the agricultural sector are The council covering vocational training in the agri-
trained through public and private institutions ranging cultural sector, Agrifood Skills Australia, was established
from comprehensive technical and further education in 2004 as one of 11 Industry Skills Councils to provide
institutes or colleges, specialist agricultural colleges, accurate industry intelligence on current and future skill
private companies, and not-for-profit organizations needs and training requirements for the agrifood indus-
operating as registered training organizations. Australia’s try. Agrifood is a public company with an industry-led
six states and two territories have legislative responsi- board of directors and industry advisory committees.
bility for education. The national government has Funding is provided under contract by the Department
become more active in vocational education over the of Education, Employment, and Workplace Relations. In
past twenty years, developing a national system for New South Wales (NSW), Tocal College is a Registered
vocational training, providing significant funding to Training Organization within the NSW Department of
deliver training, and organizing national curricula Primary Industries (DPI). A trademarked brand
around the principles of competency-based training. name—PROfarm—is used for all short courses for
Each sector of the economy, including agriculture, is farmers run by DPI technical specialists through Tocal
covered by a comprehensive suite of competencies College. Attendance at PROfarm courses from the third
known as a “training package.” The content of these quarter of 2009 to the second quarter of 2010 was 4,309,
training packages is based on the needs of the economy and the projected income was 862,377 Australian dol-
and industry, which are communicated through Indus- lars. Full-time courses at this college have a 90 percent
try Skills Training Councils. completion rate.
Source: Agrifood Skills (http://www.agrifoodskills.net.au) and Cameron Archer (Principal, Tocal College, Paterson, NSW,
Australia; see cameron.archer@industry.nsw.gov.au and www.tocal.com), personal communication, 2010.
MODULE 2: THEMATIC NOTE 3: EDUCATION AND TRAINING FOR TECHNICIAN DEVELOPMENT 137
and recent projects supported in China and India reflect this POTENTIAL BENEFITS
trend.1 In both countries, projects were designed to meet
The presence of skilled agricultural technicians has the
growing deficits in the availability of skilled workers, partic-
potential to strengthen all links in the agricultural value
ularly in engineering and IT. These investments reflect the
chain and lead to still other benefits:
economic importance of engineering, manufacturing, and
IT in both economies.
■ Greater productivity and efficiency in public and private
Innovative aspects of more recent TVET projects outside
entities employing technically educated and trained
agriculture include:2
graduates of the AET system.
■ Greater industry involvement in defining training stan- ■ A VET system that is networked with stakeholders in the
dards. public and private sectors and with civil society organi-
■ Development of public-private partnerships that enable zations (CSOs).
costs to be shared. ■ Well-crafted and successfully implemented policies to
■ Creation of attachments and apprenticeships (see guide VET for the agricultural sector.
module 4, TN 2; and module 5, TN 1). ■ Financing of TVET/VET on a sound footing that
■ A change in focus from training inputs to training out- includes public and private contributions and fees levied
comes (that is, competency-based training). on trainees or their sponsors.
■ Encouraging life-long learning by offering modular cur- ■ Assured quality of TVET/VET through certification of
ricula that enable learners to enter and exit and continue courses and programs by internal and external accredita-
to upgrade skills. tion bodies.
■ Making the shift from teacher-centered to learner- ■ TVET/VET pedagogy that reflects a student-centered
centered pedagogy. approach to learning, coupled with attachments and
■ Seeking accreditation for programs. work experience opportunities with stakeholder enter-
prises, farms, and CSOs.
In Africa, these innovative aspects can be seen in Ethiopia, ■ TVET/VET networked with other parts of the AET
where TVET is provided to the agricultural sector under the system.
management of the Ministry of Agriculture and to other sec- ■ Well-qualified and high-performing graduates of
tors through the Ministry of Education and the Regional TVET/VET enrich the AIS through their interactions
Education Bureaus. A 2004 World Bank Post-Secondary with a variety of actors in the system.
Education Project included a small component for TVET
innovation to expand and deepen system reforms spear- Investments in the production and upgrading of techni-
headed by the Ministry of Education. Agriculture was not cal sector specialists ensure that the continued moderniza-
included in the project, but the project’s five pillars of TVET tion and growth of agriculture and its numerous areas of
transformation would be a good fit for vocational training in focus meet the needs of a public sector that requires techni-
agriculture: (1) decentralization of service design and deliv- cians to disseminate technology and undertake regulatory
ery; (2) strengthening partnerships among stakeholders, functions; of a private sector that invests in agribusiness,
especially between training providers and employers; input supplies, and domestic and international marketing;
(3) development and implementation of a trades testing and of farmers’ associations and cooperatives that represent pro-
certification system; (4) cost sharing by beneficiaries; and ducers; and of consumer organizations that rely on food
(5) an orientation to market-based demand to shape training. supplies that are fresh and healthful.
A 2006 World Bank project in Ethiopia, the Rural Skilled technicians with the potential to be self-employed
Capacity Building Project, included an agricultural TVET entrepreneurs who, in turn, create rural employment and
component. The Project Appraisal Document notes that serve as role models for farmers and others with whom they
“capacity-building of middle-level technical workers is an interact in the AIS.
important factor in the drive to enhance productivity, stim-
ulate economic competitiveness, and raise people out of
POLICY ISSUES
poverty.” Implementation of the TVET component is
encountering some difficulties, in part due to the lack of A major policy challenge is to arrive at an agreed formula
cooperation between the Ministries of Agriculture and Edu- for financing TVET/VET. Should the public sector fully
cation and between central and regional governments. underwrite such education and training, or should
MODULE 2: THEMATIC NOTE 3: EDUCATION AND TRAINING FOR TECHNICIAN DEVELOPMENT 139
■ Invest in dialogue with major stakeholders to arrive at a ■ Begin with a small number of good courses or programs
widely understood and supported view of the impor- that meet stakeholders’ most important human-resource
tance of TVET/VET. needs.
■ Involve stakeholders in high-level governance of ATVET. ■ Form an active network with other TVET and VET sys-
■ Create a shared and well-documented message for tems and, when resources allow, undertake study visits.
decision makers to get policy and material support for ■ Ensure that TVET/VET is linked to AET.
VET. ■ Encourage cross-sector dialogue, because agricultural
■ Encourage decision makers to clarify responsibility for TVET/VET is often linked to other sectors’ programs and
TVET. Is TVET solely a public responsibility, or is development plans.
responsibility shared with the private sector? ■ Seek certification of all TVET programs to ensure quality.
■ Undertake a collaborative assessment of labor-market ■ Include environmental considerations in the preparation
needs and expectations from the TVET/VET system. of technicians for agriculture, because the sector is rec-
■ Obtain agreement on funding for TVET, based on doc- ognized as a major contributor to pollution and environ-
umented needs and stakeholders’ expectations. For mental stress. Programs and courses for technicians
example, TVET could be funded through public-private should identify the issues of concern and underline the
partnerships that provide private support in cash or need for environmental sensitivity on the part of their
kind (equipment, facilities). graduates. The environmental focus of the curriculum
■ Invest in the capacity of teachers and instructors; it is would be examined in certification and accreditation
important for the viability of TVET. exercises undertaken by internal and external bodies.
141
INVESTMENT NEEDED development, and regional and international training
agencies.
Three main types of investments can be considered to build
■ Build AIS-ready skills capacity. Provide selective sup-
capacity in the staff of public agricultural agencies and
port for specific, short-term programs for in-service
development projects and those in the private sector who
training using public funding or with public-private-
provide a variety of agriculture-related services and supplies
partnership resources. Specific responses may include:
to farmers, processors, marketers, and civil society. The first
study visits; short-term overseas training; attachments to
type builds capacity in public agencies; the second builds
research, community, or private enterprises; or acquiring
private sector capacity; and the third develops specific
urgent adaptation strategies for dealing with the impact
capacities in development project personnel.
of natural phenomena, such as insect or disease out-
breaks or climate change.
Managing and improving in-service training in ■ Create capacity for life-long learning. Support may be
ministries of agriculture given for the development of seminars and short learning
In-service training in ministries of agriculture is generally activities at universities. These options would be available
poorly managed. Managers exert weak oversight of training to public sector decision makers, senior technical man-
programs and impacts. Ordinarily, personnel appointed to agers, private sector managerial and technical personnel,
plan and implement training/learning programs are not and CSOs. This investment category serves to increase
selected from a pool of professionally qualified or practic- knowledge and skills as well as to exchange experiences
ing human resources development specialists. Nor are min- and ideas among influential actors in the AIS.
istry and other public sector staff systematically identified
for specific training and learning experiences that prepare Investments in building private sector capacity
them for future responsibilities. Seniority in the civil ser-
These investments include support for mutually beneficial
vice is often the criterion that decides who is selected and
joint ventures in which, for example, the public sector supplies
promoted in the system; competence is not always a decid-
in-service or life-long-learning opportunities for private
ing factor. Shrinking budgets in the public sector have left
workers and the private sector supplies skilled operatives as
smaller cadres of professional research, technical, and
teachers, facilitators, demonstrators. The private sector may
extension staff to deal with additional responsibilities that
also offer practical training internship spaces for public
require enhanced knowledge and skills. Under these cir-
employees or students from the AET system (IAPs 3, 8, and 9).
cumstances, government agencies must make their capac-
See also module 5 on private sector development.
ity-building efforts a priority and ensure that they are as
effective as possible. Key elements in bringing about change
include: Investing in project management and
implementation personnel
■ Policies. Following high-level management commitment Almost all development projects for the agricultural sector
to adopting change, a policy directive is issued describing seek to strengthen the capacity of the people who imple-
responsibilities for human resource development ment them.1 A variety of training and learning activities are
(HRD). often funded for these staff through the project’s larger
■ Capacity to implement the policy. Personnel to imple- capacity-building components. The range of capacity-
ment the new HRD approach are selected and enrolled in building activities for project personnel and beneficiaries is
appropriate training programs. wide. Although there are generic lists of activities that can
■ Review of training/learning programs. HRD and human meet basic needs, each situation and its particular needs will
resource management (HRM) rules, needs assessments, determine the shape, content, duration, and participants in
training/learning responses, selection criteria, and mon- the capacity-building intervention.
itoring and evaluation of training/learning impacts are These activities may be labeled capacity-building com-
reviewed in detail and adjusted, based on the new ponents or training components and typically are funded at
approach to HRM. about two or three percent of project costs. Such compo-
■ Links to learning resources: Establish links with learning nents are project specific. They operate alongside in-service
providers such as the research system, universities, TVET training programs provided by public agencies for agricul-
entities, private sector leaders in agriculture and rural tural sector staff. A project’s capacity-building components
145
standards in agricultural education and monitor compli- It upgraded the relevance and quality of in-service train-
ance with these standards. While the proposed Agricultural ing, increased client involvement in identifying training
Education Council was being established, ICAR’s Education needs, modernized training facilities, and enhanced staff
Division was strengthened, and the Norms and Accredita- knowledge and skills.
tion Committee was restructured. It emphasized the management of human resources in
The project encompassed four subprojects from three line departments to ensure that staff knowledge and skills
participating states—one each from Haryana and Andhra were of the highest quality and that human resources were
Pradesh and two from Tamil Nadu—selected as good can- employed effectively.
didates for demonstrating the effects of reforms to other It initiated the reform process with four universities and
states. The subprojects sought to reform the curriculum used the experience to scale up reforms to other universities
and syllabus, improve faculty quality, revitalize teaching in the SAU system.
methods, organize faculty exchanges within India and with
foreign universities, modernize university administration IMPACT
and management systems, upgrade infrastructure (teach-
By and large, the project achieved its development objec-
ing laboratory equipment, computer systems, communica-
tives, although the Project Completion Report (June 2002)
tions, farms, libraries, and hostels), and establish placement
identified some design flaws and less-than-satisfactory
centers and programs for student attachments to agroin-
outcomes.
dustries. The project also promoted initiatives to involve
The quality and relevance of higher agricultural educa-
university clientele more in university management
tion was improved by establishing an Accreditation Board,
and programs and improve education-related financial
demand-oriented curriculum reforms, and complementary
management.
investments in staff training and educational infrastructure.
To upgrade human resource management, at the state level
A participatory system of institutional accreditation was
the project supported:
developed, and ICAR was implementing it throughout the
SAU system. Academic norms for all undergraduate and
■ In-service HRD and HRM programs in 14 line depart-
postgraduate programs were revised and implemented.
ments that worked closely with SAUs. This support
Education programs were more relevant. Curricula
included training focused on job-oriented needs; system-
were updated for 11 undergraduate and 32 postgraduate
atic training needs assessments; training of trainers; eval-
programs. Courses were introduced in new areas such as
uation of training effectiveness; better instructional facil-
biotechnology, computer applications, agribusiness man-
ities; and improved management of state agricultural
agement, and sustainable agriculture. Coursework was
employees.
broadened to include skills-oriented, hands-on training
■ Manpower needs assessment, involving the establish-
programs developed through wide consultation with
ment of broad-based Manpower Advisory Councils to
stakeholders.
sponsor rigorous studies of labor-market requirements
These changes were reflected in new and improved
and trends (that is, to begin developing labor-market
teaching materials (laboratory manuals, course modules,
intelligence) within each state. Data from the studies
textbooks, and so forth) and methods, along with substan-
were expected to provide state authorities and university
tial investments to train research and teaching faculty and
officials with technically sound information for crafting
upgrade classrooms, laboratories, libraries, and IT facilities.
public policy, academic programs, budgets, and adjust-
These efforts improved the quality and relevance of the
ments to university intake numbers.
education programs and the teaching/learning environment.
In-service training improved in quality and relevance
INNOVATIVE ELEMENTS
through the establishment of needs-based training programs,
In the context of India’s SAU system at the time, the project greater client involvement (farmers, agroindustry, input
delivered some innovative interventions. suppliers, and others), modernized training facilities, and
It raised academic and administrative standards in the investments in staff training. Improved training programs
SAUs through updated curricula, improved pedagogy and and the adoption of more effective practices to disseminate
teaching/learning materials, an emphasis on practical expo- agricultural technology appear to have improved extension
sure for students, and accreditation of academic programs. performance.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 1: REFORMING INDIA’S STATE AGRICULTURAL UNIVERSITIES 147
and style of teaching did not change in any substantial way, turn their attention elsewhere, reforms in governance will
even though trainers were using more instructional aids. not continue, and the initiatives started by the project will
not be sustained. Creating or strengthening these con-
Other lessons arising from the project have broader stituencies requires delegation, decentralization, and
application: empowerment of different functionaries as well as the
As emphasized in the module overview, the case for institutionalization of key reforms, such as changes in uni-
reform needs to come from within the system—in this versity statutes that give a genuine voice to the private sec-
instance, from the coordinating body for higher agricultural tor or “teeth” to student evaluations. Projects need to be
education. The weak impetus for reform underlies the other designed in ways that will initiate and elicit such gover-
lessons presented here. nance and institutional reforms, perhaps by phasing in
Reform takes time. Although this project recorded many project investments that are explicitly linked to realizing
successes, the difficult issues were not resolved. A second agreed elements of reform.
phase of the project, which would have institutionalized the Although the project devoted attention to building up
reforms, was never funded. management and implementation capacity at various lev-
The number of universities in the project was limited to els, in retrospect the ability of the implementing agencies to
four to achieve a convincing demonstration effect. This manage procurement, financial management, and selection
decision, in a system as large as India’s, was perhaps good— and placement of staff for overseas training was overesti-
but it remains an open question. mated. It is critical to make a thorough assessment of
Human resource management—intended to make train- capacity and readiness for reform before designing the
ing more meaningful in the state line departments that project in detail.
worked closely with the SAUs—proved more difficult to man- Finally, when supporting university reform in entities
age than expected, because the universities and line depart- that focus on teaching, research, and extension, it is impor-
ments were administratively separate. (As noted, it may have tant for donor organizations to ensure that they do not offer
been preferable to focus on line agencies in a separate project.) those entities competing funds that would allow adminis-
Unless a project can tap into or build durable con- trators or faculty to ignore the more difficult elements of the
stituencies for reform, the “champions for change” will reform agenda and delay or derail the process.
149
INNOVATIVE ELEMENT more students to pursue a career in agriculture. Student
numbers have risen since the reorganization, and the num-
An innovative aspect of the reform was the leadership from
ber of students entering the university from secondary
the Ministry of Agriculture, which saw the importance of
school doubled. This trend was reinforced by many initia-
creating a strong, competitive research and education center
tives to inform the general public and students in secondary
that would give the ministry a prominent guiding/steering
education about the university’s new mission and emphasis
role and strengthen its political position. Equally innovative
on exploring nature to improve the quality of life.
was the university’s capacity to see change as an opportunity
The university has more than 11,000 students. Approxi-
to increase its competitive power by combining different
mately 7,000 participate in the bachelor-level program, and
levels of research and education that included the university,
of the university’s 2,500 MSc and 1,600 PhD students, more
research centers, experiment stations, and professional
than half are from abroad. The relatively large number of
education, complemented by special centers for knowledge
doctoral students signifies the university’s true research
valorization, business schools, and professional midcareer
character and international scope (it draws students from
training and capacity building.
more than 100 countries). A new campus with cutting-edge
teaching and research facilities is under construction. The
university has developed a flexible funding structure that
EXPERIENCE
attracts financing for research fellowships; its scientific
The Wageningen University and Research Center’s vision excellence helps to secure operational funding. It partici-
for education is to create a content-inspired international pates in international research programs oriented to devel-
learning environment based on (1) an orientation to com- opment and plays a leading role in large, privately funded
petencies (knowledge, skills, and attitude), (2) professional programs set up by foundations. The university uses core
and academic education, and (3) diverse, dynamic, and flex- funding to support development-oriented research to help
ible learning tracks. The university’s reformulated mis- solve important societal problems and at the same time to
sion—“to explore the potential of nature to improve the build skills and competencies of partners and partner insti-
quality of life”—has given rise to programs that attract tutions in developing countries.
SYNOPSIS CONTEXT
alling enrollments and mismatch between graduates’ Egypt’s agricultural universities were losing students. Out-
151
INNOVATIVE ELEMENTS methods. These two-day events focused on the science,
mechanics, and art of teaching as well as skills to elicit learn-
Innovations in project design and implementation included:
ing. The workshop emphasized active, problem-based
learning strategies. Educators from the United States
■ Leaders from the academy and the private sector partici-
conducted three follow-up workshops with 139 faculty
pated in a Steering Committee that guided the project’s
members who had completed the first round of workshops.
implementation.
Outstanding Egyptian teachers who emerged from the first
■ A skill gap analysis identified knowledge and skill deficits
workshops organized additional in-service workshops for
in recent graduates.
faculty who did not speak English. Nine such workshops
■ Academic staff participated in redesigning and improv-
were conducted for 234 faculty members from all five
ing courses and learning materials.
universities.
■ University deans and private sector leaders gained first-
hand views of overseas university systems.
■ External Advisory Committees were created and pro- Leadership study tour generates ideas for change
vided feedback on sector development and labor-market
needs to university management. Nineteen deans and department heads traveled with private
■ Student internship programs were developed. sector leaders interested in strengthening the universities to
visit four United States land-grant universities with impor-
tant faculties of agriculture. The tour emphasized how each
Details on the project’s experience with these innova-
university worked closely with the private sector to modify
tions follow.
the curriculum, established internship programs, operated
career centers, and incorporated practical skill training into
Role of the steering committee
their respective academic programs. During a two-day
A Steering Committee of Egyptian academic and private sec- strategic planning workshop following the tour, participants
tor leaders guided planning and implementation of the proj- discussed and developed the elements of a plan to incorpo-
ect’s capacity-building component. Their participation rate similar ideas in their universities. The tour enabled par-
helped bridge the gap in understanding and cooperation ticipants to see the value of advisory committees involving
between the private sector and the participating institutions. the private sector, including their potential to promote part-
The committee met periodically to review and approve all nerships between the private sector and the university sys-
major project activities and to select and/or approve nomi- tem. The conclusion was that the study tour “formed the
nees for major activities such as overseas study tours. basis for significant institutional changes in the participat-
ing universities” (Swanson, Barrick, and Samy 2007).
Skill gap analysis
The skill gap analysis involved 254 private employers and Course development workshops
1,000 university graduates who had been out of school
The skill gap analysis demonstrated the need for the univer-
and/or working for at least one year. Private firms and recent
sities to change their curricula, but that would be difficult in
graduates agreed that university students needed to develop
view of the time and effort needed for the Supreme Council
critical thinking, problem solving, and decision-making
for Higher Education to approve the modifications. As an
skills, as well as effective communication and teamwork
alternative strategy, the basic structure of the curriculum
skills. The common method of teaching through lectures did
was retained and individual courses were modified to reflect
not actively involve students in learning. It emphasized
the current knowledge base in each field of study. The focus
knowledge recall at the expense of higher cognitive skills
shifted to updating basic course content and teaching meth-
such as analysis, synthesis, and evaluation. The first step in
ods and developing common academic standards across all
providing students with the skills they lacked was to trans-
five universities, especially for the common core courses.
form the teaching/learning methods at the universities.
Course development workshops, attended by faculty
members and teaching assistants responsible for the core
Active teaching and learning
courses, adapted courses to become more consistent in con-
Altogether, 239 university faculty members participated in tent as well as academic standards. The Midwest Universities
seven in-service workshops on active teaching/learning Consortium for International Activities (MUCIA) selected
MODULE 2: INNOVATIVE ACTIVITY PROFILE 3: CURRICULUM CHANGE IN EGYPT’S AGRICULTURAL UNIVERSITIES 153
I N N O V AT I V E A C T I V I T Y P R O F I L E 4
154
and responsibilities and to become systems thinkers, cat- education). The second option is a two-year postdiploma
alysts, facilitators, and effective managers of change program. Both programs lead to a BSc in Agricultural
within their extension organizations. Extension.
4. In the long term, bring about institutional reform
within African universities, not only in the development
Innovative elements
of responsive agricultural extension curricula, but also in
the wider institutions themselves. The program’s innovative feature—aside from its focus on
the untapped potential of midcareer professionals—was its
In summary, SAFE strengthens the in-country capacity off-campus Supervised Enterprise Project (SEP). After an
of African universities to be adaptable organizations that initial period on campus, students return to their work
can develop client-focused training programs, acquire rele- environment to undertake a SEP for 4–6 months. These
vant core instructional materials in agricultural extension community-based experiences facilitate experiential learn-
and related fields, mobilize internal and external resources ing as well as linkages between the major subsystems of the
to sustain the programs, and forge partnerships with other agricultural knowledge system: the farmer subsystem, which
local and international institutions and agencies. Specific includes agribusiness, the extension and education subsys-
problems that SAFE addresses are (Zinnah 2003): tem, and the research subsystem. The SEP embodies the
innovative link that connects the university and the com-
■ Outdated extension curricula that do not reflect chang- munity, thereby enhancing AIS interaction. Through the
ing needs of providers and users of extension services, student extension workers, the SEP conveys community
including the private sector. problems and successful practices to university researchers
■ Inadequate off-campus, farmer- and client-focused prac- and enriches the curriculum.
tical training activities for students in agricultural col-
leges and universities.
Impacts of the Cape Coast program
■ Lack of appreciation of the experience of midcareer
extension professionals in the agricultural and rural The main beneficiaries of the SAFE Program are:
development process.
■ Lack of appreciation for midcareer professionals, espe- ■ Frontline extension staff of MOFA, because without the
cially certificate and diploma holders, as a prospective program, they would have little chance to get a BSc, given
group of learners. the perceptions of diploma and certificate holders
■ Lack of appropriate training opportunities for midcareer among university admission officers.
extension staff. ■ Farmers, because the SEPs concentrate on farmers’ prob-
■ Lack of partnerships among agricultural colleges and lems and have generated income-producing projects.
universities and employers/clients of their graduates. ■ Academic programs at the university, which are exposed
to real farming community problems and concerns.
■ UCC, through heightened visibility and links to MOFA,
SAFE’S DEVELOPMENT AT THE UNIVERSITY farmers, extension staff, NGOs, and District Assemblies.
OF CAPE COAST, GHANA The university received international recognition for the
To develop the SAFE pilot, in 1992 Ghana’s Ministry of innovative nature of the program.
Food and Agriculture (MOFA) and its NGO partners ■ MOFA, which gains an infusion of newly motivated staff
requested the University of Cape Coast (UCC) to create a with practical skills and experience who serve in key
needs-based BSc degree program in agricultural extension positions and supervise the work of other extension staff.
for midcareer extension staff with diplomas and certificates
(qualifications possessed by some 85 percent of Ghana’s By 1999, 51 students (22 percent female) had completed
extension staff). These men and women would undertake BSc degrees; of these, 22 percent gained first-class honors.
the program on a leave of absence from their jobs and Seventy-six students, including three from Nigeria and one
would return to work when they completed their studies. from Mozambique, were enrolled (29 percent were female);
The resulting program has two options. The basic option 51 were certificate and 25 were diploma holders. The partic-
is a four-year program offered to extension workers who ipation of the women in particular should increase the
have passed a certificate course (two years of postsecondary gender balance in the upper levels of the extension service.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 4: THE SASAKAWA AFRICA FUND EDUCATION PROGRAM 155
A seven-member Consultative Committee was formed with A relevant program that shows positive results creates fur-
representatives from MOFA, UCC, SAA/Winrock, and ther demand among academic entities and potential
farmers/agribusiness to provide recommendations, includ- enrollees.
ing recommendations for fund raising. Greater interaction Including a practical stage (the SEP) in the program was
was fostered between field staff of some bilateral agencies central to success, because it fostered the alliances that
and NGOs, UCC, and students because of the SEP. spread the benefits to all participants. Communities gained
By January 2008, 246 enrollees at UCC had obtained BSc from the external contacts. Ministries of agriculture gained
degrees and 231, a diploma. At the same time, 81 persons better-trained staff with more field experience, which made
were enrolled in the degree program and 112 in the diploma their contribution to sector development more effective.
program. Universities gained greater community visibility and access
to real rural training settings and challenges, and university
research programs and curricula were enriched to reflect
WHAT IS THE FUTURE OF SAFE IN AFRICA?
changes in agriculture on the ground.
It is becoming evident that partnerships are the only Aspects of the program can be improved. The four-year
solution to the multifaceted problem of training Africa’s certificate program is too long for some midcareer workers
agricultural extension staff. In extension education (in who would be content with a diploma rather than a degree.
fact, throughout the AIS), the tradition of working alone The program also needs more diversity, especially with
in a competitive rather than a collaborative mode is no respect to female recruits, but the pool of midcareer women
longer valid. No single player has the capacity to cover all extension workers for the program remains small.
education and training needs, and partnerships with One lesson for implementing this kind of program is that
donor agencies will continue to be critical in this poorly the need for qualified and committed core staff is para-
resourced area. mount. The lack of such staff has been a big constraint,
The motives and methods of the SAFE program res- affecting not only the implementation but the long-term
onated with African universities outside Ghana. Following sustainability of the program. Because the SAFE concept is
the UCC pilot, other universities in Ghana and elsewhere new to the university and the extension service, administra-
joined, including: Kwadaso Agricultural College (Ghana); tive and academic staff members must be oriented to
the University of Abomey-Calavi (Benin); the Polytechnic it. University staff members must acquire the improved
University of Bobo-Dioulasso (Burkina Faso), Alemaya pedagogical methods and skills to better meet midcareer
University of Agriculture and Hawassa University students’ learning needs. The acquisition of such skills is
(Ethiopia); the Rural Polytechnic Institute of Training and facilitated by staff involvement in the SAFE program
Applied Research and Samako Agricultural Institute (Mali); through team teaching and joint supervision of SEPs.
Bunda College of Agriculture (Malawi); Ahmadu Bello Uni- Financing is crucial. SAFE, with its strong off-campus
versity and Bayero University (Nigeria); Sokoine University focus, is expensive to run, even if the returns on investment
of Agriculture (Tanzania); and Makerere University are large. A clear exit strategy for the funding partners is
(Uganda).1 Donor support for the SAFE program was vital to enable the university to develop its own means of
lengthy (UCC Ghana, the pioneer university, was supported continuing the program. In Ghana, MOFA is considering
from 1992 to 2002), but once universities and diploma- including the SAFE program in its budget. Incentives also
granting institutions accumulated sufficient experience help universities adopt the program. At UCC, for example,
with running the new curriculum, direct support ended. a multipurpose building (the Sasakawa Center) was com-
A number of lessons were learned as SAFE expanded to pleted and is used to generate income for the SAFE program
new settings. Perhaps the most important lesson was that the at the university. It remains vital to build constituencies that
seemingly impossible task of bridging the technical- can pressure decision makers on behalf of the university;
professional gap in civil service employment could be some administrators continue to regard SAFE as extra work
solved for midcareer, technically qualified extension staff. rather than a strategic necessity.
157
■ Planned projects with care and implemented agreed five CBR communities supported by staff from the Center for
actions to solve problems. Community-Based Research in the Faculty of Agriculture. The
university’s Practical Training Unit staff learned, for the first
Each CBR project would be developed and implemented time, how to organize such training in rural communities and
in 12–18 months and would receive a grant of how to communicate with community members and under-
200,000–300,000 baht (B). To facilitate CBR projects, CBR graduate students. A practical training manual was prepared
centers were set up. Through counselors and staff, they for the 2004 program. As a result, the Faculty of Agriculture
would identify community researchers, identify local prob- has allotted an annual budget for this training activity. It was
lems, develop research questions, develop a CBR proposal also the first time that communities had hosted 30 university
and action plan, sign research contracts, and monitor the students for a five-day visit, helped organize the practical
CBR from the beginning to final report phase. training program, and interacted closely with such a group of
In 1998 the Extension Department saw that CBR projects visitors. For the students, the visit was a true learning experi-
could provide an opportunity for students to become involved ence. For the first time, students lived with rural families, com-
in communities. Student learning was integrated with com- municated, understood the realities of rural life, and appreciated
munity research through a number of initiatives. Students the value of local wisdom in dealing with livelihood issues.
enrolled in Extension Communications visited active CBR
projects and, as an exercise, could write an article on their
INNOVATIVE ELEMENT
observations and village issues; produce a script to be broad-
cast over community radio; or submit an article for commu- The innovative aspects of the university-community link
nity newspapers. Students specializing in Media Production were that it used an ongoing project (the CBR project) as a
for Extension visited CBR projects and developed media vehicle for introducing students to the realities of rural
products that reflected the needs of community researchers, community life; it created a university Center for Commu-
such as posters, newsletters, photographs, DVDs, and radio nity-Based Research; and it used CBR projects created from
programs. Graduate students enrolled in Agricultural Com- this center as a learning resource for undergraduate and
munities Studies undertook study visits to CBR communities; graduate students. Apart from the core faculty in the Center
participated in discussion and dialogue; listened carefully for Community-Based Research, other faculty members
when interacting with CBR researchers, counselors, and staff; began to adopt this approach to building student capacity to
took detailed notes; and produced a review of their visits. The deal with real problems in rural communities.
materials produced, together with their experiences in the
communities, formed the basis of their thesis topics.
IMPACT
Efforts to widen the interaction between the broader uni-
versity community, the research funding agency, and CBR In a relatively short period, the program established the CBR
communities proved difficult to achieve. For this reason, a link with communities and dramatically raised awareness
project specific to the university—the Research Management among students and faculty of how isolated the university
Fund—was established in 2002 with support from TRF to had been from life in rural communities. Research has
foster wider collaboration among the faculty of agriculture, become more focused, and the curriculum reflects the knowl-
TRF, and CBR communities for integrating teaching/ edge and skills needed by graduates who will meet technical
learning, research, and community service. The ultimate and social needs in rural areas. The university, through its fac-
objective was to create a learning community of undergrad- ulty and students, has gained visibility and stature among its
uate students based on CBR projects. To reach this objective, stakeholders and has become an active AIS actor.
a Center for Community-Based Research was established in By 2007, 650 CBR projects had been funded with grants
the Faculty of Agriculture to develop CBR projects as a from TRF, and 264 had been implemented, facilitated by the
means of empowering community researchers. In 2003, 11 core research team that runs the Center for Community-
CBR projects were developed. Based Research. The center collaborated with the Practical
The next challenge was to get the university’s Student Training Unit in the faculty to enable second- and third-
Affairs Unit and Practical Training Unit involved in using CBR year undergraduate students to undertake “practical train-
projects as a learning community base for undergraduates. A ing” in communities.
start was made during the practical training period in 2003, Additionally, these students were encouraged to practice
when 120 second-year students undertook practical training in further “student activity” in the communities through
Box 2.12 Specific Lessons from the Community-Based Research Approach Adopted by Chiang Mai
University’s Faculty of Agriculture
■ The need for change in academic programs can be ■ Through the CBR projects, academic knowledge was
identified from within the educational institution. applied to problems that community members
■ Available resources (in this case, the Thailand could not solve by themselves.
Research Fund) can be tapped to begin the change ■ The involvement of faculty and students with com-
process. munities brought the university to the field and
■ Involving students and researchers in the change strengthened AIS linkages between the university
process is likely to ensure that the change model is and a major stakeholder group.
sustainable. ■ The collaboration of the CBR projects and commu-
■ It was not easy to convince all faculty members to nities, the Practical Training Unit, the Student Affairs
adopt the CBR model, especially because projects Unit, and the Department of Agricultural Extension
run from 12 to 18 months, whereas mainstream stu- contributed to the integration of learning/teaching,
dent research projects run only from 6 to 8 months. research, community service, and faculty.
■ Collaboration within the university and with com- ■ Information and knowledge generated by CBR proj-
munities is essential. ects can be used to develop research projects for
■ The participation of academic staff as co-researchers undergraduate and master’s students. At the same
allows them to increase their knowledge and facili- time, community service is built in throughout the
tating skills and to change their world view. For research process and culminates in the development
example, teachers adopted a participatory learning and use of new knowledge to improve life in the
process, respected local wisdom, and recognized vil- communities.
lagers’ tacit knowledge. These practices inspired ■ As noted, the CBR program was successful but
changes in their teaching style, which has become required financial support and collaborative organi-
more participatory and facilitates learning more zation inside the university and with communities,
effectively. and the support of the research funding agency.
Source: Author.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 5: CHIANG MAI UNIVERSITY LINKS WITH RURAL COMMUNITIES TO FOCUS RESEARCH 159
I N N O V AT I V E A C T I V I T Y P R O F I L E 6
160
abundant employment in Ministries of Agriculture, working with companies in the region in such areas
development banks, and other public agencies, by the as: crop management techniques and practices for melons,
1980s structural adjustment programs and other changes sugarcane, rice, and citrus; livestock management practices;
had largely eliminated these possibilities. Consequently, small-scale and industrial aquaculture; and regional efforts
EARTH’s academic program was focused largely on in alternative energy generation from wind, geothermal,
preparing professionals for the private sector. Providing solar, and sugarcane-derived sources. Students also learn
graduates with entrepreneurial skills and abilities became about water management and biodiversity in the dry trop-
fundamental to the program. The centerpiece of entrepre- ics in relation to each of the above-mentioned activities.
neurial training at EARTH is the Entrepreneurial Project ■ Entrepreneurial Projects. Students develop a business
course (see the next section). venture from beginning to end during their first three
years at EARTH. Small groups of 4–6 students, of different
nationalities, decide upon a business activity related to
INNOVATIVE ELEMENTS agriculture and natural resources and conduct a feasibility
To create the type of leader capable of responding to the study (including financial, social, and environmental crite-
social and environmental problems facing rural communi- ria). If the study is approved by a panel of professors, other
ties of the humid tropics, EARTH developed a unique edu- students, and external experts, the university loans money
cational model based on four pillars: technical and scientific to the company, and the team implements the project,
knowledge, entrepreneurial mentality, values and ethics, including the marketing and sale of the final product.
and social and environmental commitment. As part of this After repaying their loan, with interest, the group shares
model, EARTH created an experiential curriculum that bal- the profits. The Entrepreneurial Project is accompanied by
ances theory and practice. Five keystone programs within a series of classroom modules related to business organi-
EARTH’s curriculum are based on experiential learning: zation, accounting, marketing, and similar themes.
■ Internships. In their third trimester of their third year,
■ Work Experience. This course is taken by all first-, sec- students leave campus and take part in an internship
ond-, and third-year students and continues in the program with a host organization such as a business,
fourth year as the Professional Experience course. In the NGO, or farm. This internship program lasts 15 weeks
first and second years, students work in crop, animal, and and is a crucial component of the student’s experiential
forestry production modules on the EARTH farm. In the education. Using knowledge and skills acquired in their
fourth year, students identify work sites or activities on first three years at EARTH University, students obtain
campus or in surrounding communities that correspond real-world practical experience upon which they can
with their career goals and develop and implement a reflect during their fourth and final academic year.
work plan, dedicating a minimum of 10 hours per week
to the “job.” These programs give students opportunities to develop
■ Community Development. In their second year, in an planning and leadership skills, foster responsibility, encour-
extension of the Work Experience course, students work age them to become decision makers and critical and creative
on an individual basis with small-scale, local producers thinkers, improve their ability for analysis, synthesis, and
on their farms and with organized groups in sustainable evaluation, and apply technical and scientific knowledge in
community development. During this experience in the real situations.
community, students try to resolve problems facing the
region’s inhabitants. The community transmits real-
IMPACT
world experience and provides learning opportunities
for students. In its twenty years of operation, EARTH University has grad-
■ Academic Program at EARTH-La Flor. In their third year, uated some 2,000 students, the majority of whom have
students spend seven weeks living with a host family near returned to their home countries to work in agriculture and
EARTH’s education and research center in Guanacaste, a rural development. The EARTH educational model is widely
province in the dry tropics of Costa Rica, where they have recognized as suitable for developing graduates who have the
the opportunity to become actively involved in the region’s academic and practical knowledge, skills, and confidence to
development process. Students contribute to improve- take leadership positions in the sector. Many graduates cre-
ments in the communities and also gain experience by ate their own businesses and become employers.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 6: EARTH UNIVERSITY, COSTA RICA: A NEW KIND OF AGRICULTURAL UNIVERSITY 161
LESSONS LEARNED needs of most developing countries. An emphasis on entre-
preneurial skills equips graduates with a greater range of
The key to graduating professionals capable of successfully
career choices. Exposure of students and faculty to agricul-
promoting change and sustainable rural development is to
tural communities leads to better communication, greater
begin with young people who have a vocational interest in
understanding of rural living conditions and livelihood
agriculture, natural resource management, rural develop-
challenges, and the formulation of technical and social
ment, and related areas. Such graduates are likely to return
solutions.
to rural areas and engage in the complex and difficult work
A favorable student-to-faculty ratio (10–1 at EARTH)
that drives development. Investment in choosing and
allows for quality interaction and instruction. Faculty have
recruiting new students is a major contributor to the pro-
to be willing to get their hands dirty and to engage directly
duction of graduates dedicated to serving the sector and
with their students in production, processing, and market-
rural people.
ing as well as in research and extension. Reward and pro-
Universities have to be engaged with rural communities.
motion criteria must be designed to encourage innovative
Too often, universities are located in the capital city and lack
teaching and engagement as well as research. At the same
the resources (or the will) to get faculty and students into
time, teachers and professors must be provided decent com-
rural areas to engage directly with farmers and their fami-
pensation for their service. Substandard salaries and work-
lies. Frequent and direct contact with the realities of rural
ing conditions only serve to drive the best out of education,
life and the challenges of agricultural production are essen-
leaving the mediocre in charge.
tial in the formation of future change agents.
Agricultural institutions, faculties, and schools require
Higher education in agriculture has become increas-
investment and must be equipped with the latest technolog-
ingly specialized, with the result that many graduates have
ical advances to make a meaningful contribution to build-
great difficulty integrating knowledge across disciplinary
ing human resources for agriculture. Although assured
boundaries. Yet the development of robust rural economies
funding enables the university to maintain high academic
requires individuals capable of applying knowledge and
and infrastructure standards, fund-raising remains a con-
skills from across disciplines, often in very practical and
stant task for a private autonomous university, since its
applied ways. Particularly at the undergraduate level, a gen-
future depends on such income.
eralist formation would seem to be more relevant to the
163
(Mulder 2007; Mulder et al. 2009). They were expected to INNOVATIVE ELEMENT
disseminate the knowledge obtained in the ToT program to
The innovative element of the project was the introduction
lecturers in their colleges. The core of the competence-based
of competence-based training, which ensured that trained
education philosophy is that the flower (or other) industry
technicians were equipped with work-ready skills.
articulates the need for training. Through a labor-market
analysis and needs assessment, all stakeholders obtain a pic-
ture of how the educational program should be structured. BENEFITS, RESULTS, AND LESSONS LEARNED
Occupational profiles and competency profiles are devel-
As noted, the farm supervisors and assistant managers of
oped. The competency profiles contain knowledge, skills,
various floriculture departments were able to apply their
and attitudes.
new skills immediately after training. In Uganda, the first
A major premise in competence-based education is that
batch of sixteen diploma students graduated, and 14 are
knowledge alone is not sufficient to bring about improved
working on flower farms. Because of the training program’s
practice. In many cases, unbalanced concentration on
competence focus, employers appreciate the trained techni-
knowledge develops graduates who may know a lot but can-
cians. Placing students in internships was not difficult. Some
not apply their knowledge in practice. Applying knowledge
farms asked for as many students as were available. Various
in practice, however, is exactly what is needed in many
farms retained the interns and offered them labor contracts
developing countries. A matrix comprising eight principles
(Mulder, pers. comm., 2010).
and four competence-based implementation levels was used
The lessons from this experience to date are that demand
to decide the extent to which the horticulture training
from employers can trigger technical/vocational training
would be competence-based. The matrix structure resem-
and that close cooperation between qualified training sup-
bles that of models used by the European Foundation for
plier and clients can lead to a successful outcome.
Quality Management.
165
Education and Training in the Ministry of Agriculture and help students understand the professional recruitment
Fisheries (MAP)1 and Land O’Lakes, an international process and secure jobs in agribusiness. An agribusiness
agribusiness. The project, which started in 2006, was to run education program will be coordinated to enroll young peo-
for two years, but that timeframe proved insufficient to eval- ple in the one-year agribusiness course, which will be
uate and refine the curriculum, and the project was extended handed over to the Ministry of Agriculture and Fisheries
to 2011. The target for each secondary school was to produce (MAP) in June 2011.
50 graduates from the BACET program each year, beginning
in 2007. The first set of BACET students graduated in 2008
Program content: skills and coursework
(121) and the second set in 2009 (111). For more information
on agribusiness skills, see also module 3, TN 2; and module 5. For BACET students, the overarching goal was to learn the
problem-solving and other entrepreneurial skills required
to begin careers as agribusiness entrepreneurs, agricultural
Overarching objectives
extension workers, and middle managers to benefit com-
The project’s initial objectives (2006–08) were to: munities in Timor-Leste. During the one-year certificate
program, students build their knowledge of agricultural
■ Develop and deliver an agribusiness curriculum that systems, with a particular emphasis on markets and practi-
provides practical skills in crop and livestock production, cal training. They learn to apply their agricultural knowl-
agricultural mechanics, English language, IT, and busi- edge practically and effectively in agribusiness, demon-
ness management. Courses would include instruction in strate practical agricultural skills and transfer them to rural
basic bookkeeping, organizational management, market- communities, analyze issues and problems and find appro-
ing, financial analysis, cooperative business, and farming priate solutions, and adapt to changes and needs of the
systems in Timor-Leste. agricultural systems in Timor-Leste. Students also develop
■ Develop an ongoing agribusiness at each school and sup- their capacity to be independent and reflective in their
port agricultural enterprises and improved production in practices and to perform their duties in a moral and posi-
nearby communities. These efforts might include the tive manner.
development of a functioning poultry business (eggs) at The core of the BACET curriculum is agribusiness, with
the Fuiloro School and horticultural crops (a nursery, an emphasis on agribusiness management and planning. In
orchard, and vegetables) and livestock (goats) at the addition, students learn the principles of cooperative business
Natarbora and Maliana schools. Train students and fac- models, farming as a business (see module 3, TN 2), and pro-
ulty in the respective technical disciplines at each school viding business services to agricultural producers. Additional
with a view to taking a lead role in operating the business. courses required by agricultural professionals included pro-
■ Develop local and regional agribusiness case studies and duction agriculture (plant science, crop production, animal
identify published case studies appropriate for use in science, and livestock production); agricultural mechanics;
Timor-Leste. Train teachers in the use of case studies as a computers and IT; and English. All of these courses are linked
teaching tool. to the core agribusiness focus. Other themes that students
■ Develop career advancement services for BACET gained exposure to included sustainable agriculture, gender
graduates. awareness, healthy lifestyles, and ethics.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 8: AGRIBUSINESS TRAINING FOR SECONDARY SCHOOL GRADUATES IN TIMOR-LESTE 167
trained to the diploma level. There is logic in focusing on the geographic location of the schools and the condition of roads
practical planning and agribusiness aspects of commercial and communications. The midterm evaluation observed that
agriculture in the first year, followed by a second year of fur- it would have been better to start with one school and, based
ther training and skills development in technical specialties. on that experience, scale up. Finally, few students or staff
A strategy to upgrade to a diploma course could have the members were familiar with Portuguese (the official curricu-
following elements: continue to seek donor support to lum language). Although Tetum is the national language,
increase teachers’ level of education (this support is needed Bahasa Indonesia is widely used. Teaching materials were not
because of government budget shortages); send teachers to available in Bahasa and had to be developed.
Udayana University in Indonesia to improve skills and The midterm evaluation contained a number of other
knowledge; review the curriculum periodically; and enhance observations. Students should be involved in two types of
and upgrade facilities (such as laboratories, libraries, and enterprises while in school. One is a school-sponsored
agricultural equipment) to facilitate learning. enterprise in which students interact with the public by
marketing school produce and work in production projects
on school farms. The second enterprise, based on the school
Lessons from the midterm evaluation
farms, should have activities structured as agribusinesses,
At midterm, it is clear that the difficulties of establishing the with annual budgets and financial records to improve
new agribusiness curriculum were underestimated. As management and to use in teaching. Budgeting by farm
noted, the greatest challenge was that the initial curriculum enterprise can help with planning and management. Some
was too academic and difficult for students, and the faculty farm enterprises will be profitable and some will not, but
lacked the knowledge and pedagogical skills to teach it. this is a good teaching/learning situation for students. Grad-
Owing to the new subject matter, developing new courses uate enterprises established after students leave the program
and teaching the new material was a challenge. An addi- should receive continuing support from BACET and from
tional complication was that 80 percent of the curriculum the agricultural secondary schools. GIZ will help graduates
involved practical work, which required considerable inno- who wish to start their own enterprises.
vation and flexibility to plan production and marketing Faculty training should also be emphasized. School man-
activities, manage machinery workshops, and guide com- agement should be strengthened so that all responsibilities
puter work that maximizes practical learning. for administering BACET will reside with BACET when
A second challenge was the poor infrastructure (from san- external support ends. Finally, semiannual or annual tripar-
itation and housing to the kinds of equipment needed to sup- tite reviews should take place to plan for sustainability
port training). Logistics were another problem, because of the beyond project completion.
169
Box 2.13 Seven Steps to Improve Teaching Methods and Introduce Active Learning in Egypt’s Agricultural
Technical Schools
Step 1: Training the ATS teacher in active teaching-learning Step 4: Headmaster study tour to the Netherlands. A
methods. Forty-five Egyptian university faculty members one-week study tour for headmasters was implemented
from different subject matter areas were trained by two in the Netherlands. The objective was to introduce the
highly experienced teacher-educators from partner uni- headmasters to the Dutch vocational education system
versities in the Midwest Universities Consortium for and to investigate innovative ideas that could be used in
International Activities (MUCIA). The teacher-educators Egypt’s ATS system.
conducted a 28-hour practical workshop on active learn- Step 5: Refocusing ATS school farms and using them
ing strategies for the faculty members, who would serve for practical skill training. MUCIA sent a university
as future trainers. During the workshop, 15 active learn- farm manager to develop a work plan that would
ing strategies were taught and practiced. The most effec- change the focus of the ATS school farms toward the
tive faculty members emerging from the workshop were production of high-income, labor-intensive export
selected to conduct similar workshops for teachers from crops and give more emphasis to hands-on practical
the agricultural technical schools (ATSs). The MUCIA training for students. The project provided a grant to
specialists handed over full implementation of the each school to purchase inputs, including seed, equip-
process to the Egyptian trainers over a series of three ment, facilities, and tools. The goal was to have these
workshops, and these trainers were given the task of con- innovations become operational by the beginning of
ducting 20 two-day active learning techniques workshops the 2007/08 school year.
for over 1,000 ATS teachers. Step 6: Training ATS teachers in the use of lesson
Step 2: Developing instructional materials for ATS plans and instructional materials. A series of two-day
teachers. A four-person MUCIA team worked in Egypt workshops enabled teachers to effectively use the les-
for two weeks to initiate this second step. It became son plans developed in Step 3. The methodology for
clear that ATS teachers did not have access to audiovi- running the workshops was the same as used in Step
sual equipment, so the team emphasized developing 1 (training teachers in active teaching-learning
transparencies that could be produced cheaply and eas- methods).
ily and distributed to ATS teachers. Action plans were Step 7: Assessing progress and refining the lesson
developed for the procurement of audiovisual materi- plans and instructional materials. Project manage-
als suitable for the ATSs. Some 4,000 new transparen- ment would meet with ATS teachers and their stu-
cies were produced in Arabic and distributed to ATSs. dents to assess the value and impact of the different
In addition, 1,100 overhead projectors and screens have innovations in improving the teaching-learning
been purchased and installed in each ATS classroom. process at the 25 ATSs. Adjustments would be made
Step 3: Developing lesson plans for each ATS course. to selected lesson plans and transparencies. The Min-
Lesson plans were prepared, following the basic content istry of Education expressed interest in having lesson
of each course derived from the textbook used in the plans and transparency sets for each of the 33 courses
ATSs. A workshop was planned to help teachers use the reproduced and made available to teachers in all 104
lesson plans (Step 6). ATSs.
Source: Author.
continuation of the project to cover 54 ATSs for 2008–12. To ■ Over 3,700 ATS teachers have been trained to use active
date, results from the expanded project include: teaching-learning methods, and they have been using
these new methods in their classrooms.
■ Administrators and headmasters of the 54 ATSs have ■ Classrooms and laboratories at each of the 54 ATSs have
been introduced to new approaches to managing techni- been equipped with 386 computers, 910 overhead pro-
cal schools, providing a more effective teaching-learning jectors, and 54 LCD projectors and screens. Overhead
environment, and identifying skills needed by the private transparencies for 51 technical agricultural courses
firms through observation study tours in the Nether- (approximately 120 transparencies per course) were
lands and Greece and through in-country training. developed and are in use.
MODULE 2: INNOVATIVE ACTIVITY PROFILE 9: VOCATIONAL TRAINING IN THE ARAB REPUBLIC OF EGYPT 171
NOTES Innovative Activity Profile 4
Module 2 Overview 1. Adapted from Adjepong (1999) and Akeredolu and
Mutimba (2010).
1. These generic weaknesses have been identified and doc-
umented by individual researchers and by gatherings of spe-
cialists around the world. See, for example, FAO, UNESCO,
Innovative Activity Profile 6
and ILO (1970); Busch (1988); Hansen (1990); GCHERA
(1999); Magrath (1999); Foster (1999); Csaki (1999); 1. This activity profile has been adapted from Sherrard
Maguire (2000, 2007); Hazelman (2002); Muir-Leresche (2009) and Zaglul (2011).
(2003); FAO and UNESCO (2003); Eicher (2006); Ochola
and Ekwamu (2008).
2. Globally, few educational institutions consistently pro- Innovative Activity Profile 8
vide learning opportunities in public policy management, a 1. Ministério da Agricultura e Pescas.
need that requires further attention from governments, 2. Now GIZ (Gesellschaft für Internationale Zusammenar-
educational institutions, and donors alike. beit, http://www.giz.de/).
Thematic Note 1
REFERENCES AND FURTHER READING
1. Association of Public and Land-Grant Universities,
“Kellogg Commission on the Future of State and Land- Module 2 Overview
Grant Universities,” http://www.aplu.org/page.aspx? Bawden, R. 1998. “Agricultural Education Review. Part II:
pid=305, accessed July 2011. Future Perspectives.” Washington, DC: AKIS Rural
Development Department, World Bank.
———. 1999. “Education Needs of the Rural Sector: Look-
Thematic Note 2
ing to the Future.” AKIS Discussion Paper, based on a
1. See also “Kellogg Commission on the Future of State workshop on Education for Agriculture and Rural Devel-
and Land-Grant Universities,” APLU, http://www.aplu opment: Identifying Strategies for Meeting Future Needs,
.org/page.aspx?pid=305. December 1–3, World Bank, Washington, DC.
Busch, L. 1988. “Universities for Development: Report of the
Joint INDO-U.S. Impact Evaluation of the Indian Agri-
Thematic Note 3 cultural Universities.” AID Project Impact Evaluation
1. In China, the World Bank has supported the Guangdong Report No. 68. Washington, DC: United States Agency
Technical and TVET Project (2009), Vocational Education for International Development (USAID).
Reform Project (1996), Vocational and Technical Project Chacharee, N., and S. Chinnawong, 2009. “Farmer Partici-
(1997), Vocational Education Reform Project (2003), and patory Approach for Sustainable Agricultural Develop-
Liaoning and Shandong Technical and Vocational Educa- ment: A Case Study on GAP in Vegetable Production
tion and Training Project (2010). In India it has supported Extension in Nakhon Pathon Province, Thailand.” Paper
the Technical/Engineering Education Quality Improvement presented at the 4th International Conference on Agri-
Project (2003) and the Third Technician Education Project cultural Education and Environment of the Asia-Pacific
(2001). Association of Educators in Agriculture and Environ-
2. Based on Liang (2010) and World Bank (2010). ment (APEAEN), 3–6 August 2009, Obihiro, Japan.
Csaki, C. 1999. “Change in Higher Agricultural Educa-
tion.” In Leadership for Higher Education in Agriculture:
Thematic Note 4 Proceedings of a Conference Held in Amsterdam, the
1. These tasks include implementing the project’s larger Netherlands, July 22–24, 1999, edited by D.G. Acker.
capacity-building components for beneficiaries, who are a Ames: Iowa State University, Global Consortium of
significant constituency within the AIS. Higher Education and Research for Agriculture
(GCHERA). Pp. 67–70.
Davis, K., J. Ekboir, W. Mekasha, C.M.O. Ochieng, D.J. Spiel-
Innovative Activity Profile 3
man, and E. Zerfu, 2007. “Strengthening Agricultural
1. This section draws on Swanson, Barrick, and Samy Education and Training in Sub-Saharan Africa from an
(2007). Innovation Systems Perspective: Case studies of Ethiopia
Investment
Coordinationin and
Extension and Action
Collective Advisory
for
Services as Part
Agricultural of Agricultural
Innovation
Innovation Systems
OV E RV I E W
EXECUTIVE SUMMARY climate change, food security, and equipping rural people to
deal with risk in general.
xtension and advisory services are integral to the
179
has proven to be a cost-effective means of increasing eco-
Box 3.1 Extension and Advisory Services,
nomic returns for farmers and has had significant and pos-
Defined
itive effects on knowledge, adoption, and productivity (see,
for example, Birkhaeuser, Evenson, and Feder 1991). A
CGIAR meta-analysis of 292 research studies found median
In this module, extension and advisory services are
rates of return of 58 percent for investments in advisory ser-
defined as systems that facilitate the access of
vices (Alston et al. 2000; Dercon et al. 2008).
farmers, their organizations, and other value chain
Apart from yielding significant financial returns,
and market actors to knowledge, information, and
advisory services have also yielded positive social returns,
technologies; facilitate their interaction with part-
particularly for women, people with low literacy levels, and
ners in research, education, agribusiness, and other
farmers with medium landholdings (as shown by CGIAR
relevant institutions; and assist them to develop
research on extension by Davis et al. 2010b). Some exten-
their own technical, organizational, and manage-
sion programs, such as Farmer Field Schools (FFSs), have
ment skills and practices as well as to improve the
shown positive impacts on the environment and health
management of their agricultural activities.
(Praneetvatakul and Waibel 2006).
Sources: Birner et al. 2009; Christoplos 2010. Despite calls for privatization, government must play a
continuing role in extension (see Rivera and Alex 2004;
Swanson and Rajalahti 2010). Although a variety of public
and private services are available to farmers, many tasks of
perceptions, and tools that defined extension differed from extension and advisory services have a public goods nature,
those we have today. At that time, extension focused very including tasks related to regulation, quality control in the
much on increasing production, improving yields, training produce supply chain, the coordination of service provi-
farmers, and transferring technology. Today extension is no sion, and natural resource management, as well as the
longer viewed as an agency but as a system that is integral provision of services to marginal groups, which are unlikely
and central to innovation systems and that focuses on facil- to access or afford private advisory services. The public sec-
itating interaction and learning rather than solely on train- tor’s role is to fund the provision of advisory services
ing farmers. CGIAR research on agricultural extension from (directly or through outsourcing) where demand for
services is not being met, to support advisory services in
an innovation systems perspective shows that it has a vital
addressing issues of long-term social and ecological
role to play in helping to strengthen capacities to innovate
sustainability (including food security), and to manage
and broker linkages (Spielman et al. 2011). Box 3.1 explains extension and advisory services (including quality control
how the term “extension and advisory services” is used in and knowledge management). The public sector can also
this module. Many other extension terms are included in provide incentives for nonpublic actors to play a greater
the glossary for this sourcebook. role in providing services. In pluralistic extension systems,
space can be created by the public sector to shift some pub-
lic investment toward the management of extension sys-
OTHER ROLES AND IMPACTS OF EXTENSION tems and strengthening of private actors’ capacities,
AND ADVISORY SERVICES although this shift can come about only when there is
Besides being an important part of innovation systems, ownership within the public sector for such changes
extension and advisory services contribute directly to (Christoplos 2010; Spielman et al. 2011). Embedded
economic growth, poverty reduction, and environmental advisory services in input supply services are widespread
well-being. Extension is an essential tool for dealing with and increasing (IAP 1), but coordination by the public sec-
the serious challenges facing agriculture—such as climate tor at the local level is needed to regulate and certify those
change, high food prices, and the degradation of natural services (to prevent them from providing biased informa-
resources—while helping to increase productivity and tion, for example) and to facilitate interaction between
reduce poverty (Davis 2009). Other roles for advisory ser- public and private service providers.
vices therefore involve such diverse functions as providing
market information, phytosanitary and epidemiological EVOLUTION OF EXTENSION AND
information, information on access to credit, or the facilita- ADVISORY SERVICES
tion of access to sources with this information (see also TN 1
and TN 4). Although it is very difficult to show the impact The renewed prominence of agriculture on the develop-
of extension services, and while evidence on the impact of ment agenda has renewed the focus on agricultural exten-
some major extension models has been mixed, extension sion and advisory services. At the same time, strong
Box 3.2 Past and Current Investment Levels in Agricultural Advisory Services
Numerous donors, investors, private companies, and around US$120 million per year during 2007 and 2008,
virtually all governments invest in extension, although with a significant share going to Africa. Annual lending
the precise amounts of their investments are difficult to to these subsectors has fluctuated widely, with lows of
obtain. Global public investments in extension were around US$100–126 million in some years (2003, 2008,
estimated at US$6 billion in 1988, and currently two and 2007) and highs of US$499 million in 2006, US$
initiatives seek to update this estimate. The Food and 582 million in 2009, and around US$300 million
Agriculture Organization (FAO) recently surveyed in 2010.
investments in nine agricultural sectors worldwide, World Bank investments in extension services often
including extension. With the International Food consist mainly of small investments accompanying
Policy Research Institute, FAO is also conducting a investments in improved agricultural productivity and
worldwide extension assessment that will provide a market linkages. Notable exceptions have included large
better idea of investments in physical and human capi- investments in research and extension system linkages
tal, as well as other data, in the near future. as well as sweeping reforms of extension systems. For
Bilateral and multilateral donors have invested in example, with World Bank and other support, govern-
national extension systems and in extension approaches ments have invested heavily in designing and imple-
such as Farmer Field Schools and farmer research menting new extension models such as Uganda’s
groups. World Bank lending to the agricultural sector National Agricultural Advisory Services approach
more than doubled between 2006 and 2009, to US$5.3 (described in box 3.7) and Ethiopia’s farmer training
billion in FY09 from US$2.9 billion in the baseline years center approach. The private sector has also invested in
2006–08. Agricultural research, extension, and educa- extension, including British American Tobacco, Nestlé,
tion services did not benefit from this increase nearly as and horticultural and brewing companies. In many
much as other agricultural subsectors. Most of the addi- (particularly East African) countries, the export crop
tional lending went for productive infrastructure and subsectors have organized the delivery of services,
policy lending. World Bank support for agricultural including extension, by sector, financed through export
research, extension, and agricultural education has been levies and district marketing fees and taxes.
Sources: Swanson, Farner, and Bahal 1990; Davis 2008; Davis et al. 2010b; World Bank Rural Portfolio Team.
Researchers associated with the Consultative Group on Many NGOs, research organizations, and national
International Agricultural Research have shown that ministries have improved access to technologies and
telecommunications infrastructure helps to reduce knowledge for their rural advisory services by means
poverty and provide opportunities to people in devel- of rural telecenters and online forums.
oping countries (Torero, Chowdhury, and Bedi 2006).
In the context of rural advisory services that support Throughout the developing world, ICTs are being
innovation, ICTs have three broad functions: integrated into rural advisory services in a variety of
forms, including rural radio, television, Internet, and
■ ICTs address the need for localized and customized mobile services. The advice and information pro-
information—adapted to rural users in a compre- vided via ICTs is becoming more varied, ranging
hensible format and appropriate language—to give from information about specific technologies and
small-scale producers as well as providers of advi- practices to information that enables climate change
sory services adequate, timely access to technical mitigation and adaptation; disaster management;
and marketing information. early warning of drought, floods, and diseases; price
■ ICTs store information for future reference. In many information; political empowerment; natural
cases, information on technologies and good practices resource management; agricultural information; pro-
is available only in hardcopy, and data are incomplete, duction efficiency; and market access. ICTs also open
scarce, or useless. Local and indigenous knowledge is new channels for farmers to document and share
often transmitted orally, records are often unavailable, experiences with each other and with experts. The
or the information is dispersed. A proper information Information and Communication Technologies for
system for rural users with standardized formats to Agriculture e-Sourcebook (World Bank 2011) features
compile, document, and share information renders many examples of these applications.
that information more useful, secure, and accessible. Although many extension and advisory service
■ ICTs facilitate the creation of networks locally, providers are using “e-extension” or “cyber-extension”
regionally, and globally, leading to collaborative and to improve their outreach to farmers and farmers’
interdisciplinary approaches to problem-solving access to information, most of these initiatives are at
and research diversification through shared knowl- early pilot stages and limited empirical evidence is
edge bases, online forums, and collaborative spaces. available on the effectiveness of ICTs in extension.
councils orient the investment of district economic develop- offer specific kinds of extension advice (see World Bank
ment funds in local projects developed by farmer associa- 2011 and an example for animal health services in Kenya in
tions. The associations receive support to develop business box 3.6). At the same time, informal advisory systems, such
plans for the selected projects, many of which include as farmer-to-farmer dissemination of knowledge and tech-
the provision of extension services (see TN 2). The FFS nology, are increasingly recognized and built upon in plu-
approach (see box 3.5 and IAP 2) enhances interactive learn- ralistic extension systems (see TN 1, box 3.12).
ing between farmers and between farmers and service
providers. More recently, the involvement of farmer groups
PRINCIPLES FOR DEVELOPING EFFECTIVE
has been emphasized in the formation of “modern” cooper-
EXTENSION AND ADVISORY SERVICES
atives to develop enterprises and access financial services—
savings and credit cooperatives (SACCOs) are an example The specific level of investment in extension and the partic-
(Heemskerk and Wennink 2004; Wennink, Nederlof, and ular reform strategies to be followed will depend on the
Heemskerk 2007). national context, including the current configuration of the
ICTs have created more options for providing advisory actors in the extension and advisory service system (Birner
services (box 3.3, table 3.1) and are increasingly used to cir- et al. 2009). It is not sufficient to find an approach that
culate market, price, and weather information as well as to worked in one country or district and implement it in
The Agricultural Technology Management Agency who have started producing and marketing specific
(ATMA) is a market-oriented, decentralized approach products.
to extension that many regard as a successful model of ■ Extension must formally establish steering or advi-
extension reform. The ATMA model attempts to sory committees to identify the specific needs and
increase farm income and rural employment by inte- priorities of representative farmers in each district,
grating extension programs across line departments, including rural women. For example, under the
linking research and extension, and using bottom-up ATMA model, 30 percent of the places on each
planning. Building blocks of ATMA include empower- Farmer Advisory Committee and Governing Board
ment of farmers through farmer interest groups (FIGs), were allocated for rural women.
delivery of services to FIGs by diverse service providers, ■ Extension can better serve male and female farmers
use of bottom-up planning relying on FIG representa- by allowing private firms to play a role in “dissemi-
tives (consultation on farmers’ needs and demands), nating” product innovations and focusing public
and autonomy of the extension system. Coordination extension services more on process innovations, in
of extension service providers is an essential element. which extension personnel serve as facilitators or
The impact of ATMA is well detailed (Swanson and innovation brokers (see TN 4).
Rajalahti 2010, 114). ■ Innovative farmers play a key role in identifying and
Among the many lessons learned from ATMA, then scaling up process innovations (in farmer-to-
one of the most valuable is that extension should be farmer extension).
more decentralized and bottom-up for the following
reasons: Scaling up of the ATMA model has been attempted
with varying success. Successful scaling up often relied
■ Like agroecological conditions, markets for high- on sufficient attention to capacity-building to public
value crops and products are location-specific. extension providers (bottom-up planning, group for-
Extension and farmers must identify and consider mation, new extension methodology) as well as the
which high-value crops have the highest potential allocation of sufficient resources for operational costs.
for success in each area. The most effective approach In the absence of these characteristics, the model was
is to identify innovative farmers within similar areas less successful.
Sources: Singh et al. 2006; Anderson 2007.
another. Even though extension reforms must be tailored to provision of services. Examples include NAADS in Uganda
local conditions, it is valuable to begin designing and devel- (box 3.7) and the National Agricultural Extension Program
oping more effective and sustainable extension and advisory (PRONEA, Programa Nacional de Extensão Agrária) in
services by considering several approaches to reform. These Mozambique (see box 3.12 in TN 1). Ethiopia has embarked
include reforms in governance structures, reforms in capac- on an ambitious plan to bring advisory services to its most
ity and management, and reforms in advisory methods local administrative level. An intensive review of the exten-
(table 3.1). Investment options and examples of these prin- sion system was led by CGIAR researchers in 2009 (box 3.8).
ciples are provided in TN 1–4. Decentralization and the demand for market-oriented
Many countries, especially those under pressure from services have heightened the need for district and provin-
democratic decentralization, have embarked on reforms cial governments to involve private service providers in
that bring services closer to farmers. Under these reforms, extension, either through close coordination with private
participatory planning and resource allocation occur at the agencies or by contracting them to provide services.
district level, and district agricultural offices coordinate the These kinds of outsourcing models exist in Uganda,
Farmer Field Schools (FFSs) consist of groups of FARM-Africa, an NGO working in Kenya in
people with a common interest, who get together conjunction with the government and other stake-
on a regular basis to study the “how and why” of holders, developed a decentralized animal health-
a particular topic. The FFS is particularly suited care system in its Kenya Dairy Goat and Capacity
and specifically developed for field studies, where Building Project (KDGCBP). To link key partici-
hands-on management skills and conceptual pants in the system, the project approached the
understanding (based on nonformal adult educa- Safaricom Corporation, the corporate social
tion principles) are required. responsibility arm of the mobile phone company
So what are the essential and original elements Safaricom. The KDGCBP system works with a
of FFSs? FFSs are a participatory method of community animal health worker, who purchases
learning, technology development, and dissemi- a veterinary drug kit and mobile phone at a sub-
nation based on adult-learning principles such as sidized price. The project also installs community
experiential learning. Groups of 20–25 farmers phones, which have solar panels and batteries
typically meet weekly in an informal setting on where there is no electricity, at veterinary shops.
their farms with a facilitator. The defining char- The owner of the community phone is responsible
acteristics of FFSs include discovery learning, for repairs and can make a profit by charging for its
farmer experimentation, and group action. The use; for the private veterinarians, the phone is a
approach is an interactive and practical method means of diversifying income. Animal health assis-
of training that empowers farmers to be their tants and vets working with the project also receive
own technical experts on major aspects of their mobile phones. The phone system allows animal
farming systems. Farmers are facilitated to con- healthcare providers to update one another, share
duct their own research, diagnose and test prob- information, and conduct referrals. This system has
lems, come up with solutions, and disseminate reduced transaction costs and increased the effi-
learning to others. ciency of animal healthcare in the area.
Table 3.1 Approaches for Developing Effective Extension and Advisory Services
Approach Definition What is needed*
Reform of governance structures
Decentralization and Based on the subsidiarity principle, the planning, financing, General decentralization policies that are effectively
deconcentration and administration of extension services occur at the implemented; demand-driven services for diverse farming
lowest possible state administrative level. systems; limited public goods character and nonlocal
externalities of the extension messages; earmarking of
funding in case of fiscal decentralization of extension to local
governments; political will to build and maintain capacity for
extension at the local level.
Strengthening of Local extension systems that are based on coordination Capable service providers from private and third sector,** or
pluralism through between public and private service delivery, sufficient resources to build this capacity; competition among
outsourcing complemented by contracting for services based on service providers; recognition of the governance and
between public needs. procurement problems involved in outsourcing and adequate
and private sector steps to overcome them, including building the extension
agency’s capacity to manage contracts.
Involving farmer Farmer involvement in extension service provision, Existing social organizations (social capital); absence of strong
organizations from participatory planning to procurement to social hierarchies; availability of sufficient resources to invest
farmer-to-farmer extension and paying for services. in social mobilization and group formation, especially if
previous conditions are not met.
The Government of Uganda created the National Agri- has had its challenges, such as public extension work-
cultural Advisory Services (NAADS) through the 2001 ers’ dissatisfaction with short-term, performance-based
NAADS Act to provide a decentralized, pluralistic, contracts and the lack of a civil service job guarantee.
contract-based agricultural advisory system that would Another challenge was the limited availability of
improve farmers’ productivity and livelihoods. Local resources to train and improve the skills and knowledge
governments contract for NAADS advisory services of the “new” privately employed advisors, who needed
based on needs identified by local farmer groups, to know how to organize farmer groups and train dif-
organizations, and farmer forums. District govern- ferent types of farmers, including women, to diversify
ments provide some additional funding for those their crop/livestock farming systems. Along with creat-
extension activities and help set priorities. ing a new management structure and hiring new
Creating a totally new organizational and manage- employees, the decentralized, private NAADS system
ment structure for a national extension system takes had to arrange for new facilities (offices), equipment,
considerable time, both for hiring new staff and for transportation, and a communications system. Because
organizing farmers to help set extension priorities, the advisory services were to be managed by new
monitor extension programs, and track expenditures. farmer-based organizations, about 80 percent of the
Under NAADS, public extension workers were phased organizational and operational costs were still financed
out progressively across regions of the country. Most of by donors as of 2008. In addition, the central govern-
these workers were rehired by the private firms and ment covered 8 percent of the recurrent costs, local
NGOs that participate in NAADS and were assigned to governments financed about 10 percent, and 2 percent
new positions and service areas. This transformation were financed by the farmers themselves.
(Box continues on the following page)
In 2007/08, NAADS reached 760,000 households in parallel extension programs operated by NGOs and
712 subcounties in 79 of the 80 districts, which is still private service providers.
less than 20 percent of all farming households that The investment in Phase I of NAADS (2001–09)
accessed agricultural extension advice. Apart from was estimated at about US$110–150 million. For Phase
NAADS, Uganda had 1,600 public extension agents II (2010–15), an investment of US$300 million is
(due to be fully integrated in NAADS in 2010) and foreseen.
Sources: Authors; for more information on NAADS, see www.naads.or.ug; Benin et al. 2007; Heemskerk, Nederlof, and Wennink
2008; and Swanson and Rajalahti 2010.
Many stakeholders recognize that advisory services The African Forum for Agricultural Advisory Ser-
require a more formal, dynamic, and proactive struc- vices (AFAAS) (www.afaas-africa.org, established in
ture to gain a more credible, authoritative voice. Two 2004), was conceived when the leadership of the
forums provide advocacy and leadership for advisory National Agricultural Advisory Services realized that
services at the regional and global levels. extension services, unlike research services, had no
The Global Forum for Rural Advisory Services mechanism to share experiences. AFAAS envisions
(GFRAS) (www.g-fras.org, established in January agricultural advisory services that “effectively and effi-
2010) is designed to provide a voice within global pol- ciently contribute to sustained productivity and prof-
icy dialogues and promote improved investment in itable growth of African agriculture” in ways that are
rural advisory services; support the development and oriented toward countries’ individual development
synthesis of evidence-based approaches and policies for objectives. Through increased professional interaction
improving the effectiveness of rural advisory services; and information sharing, AFAAS participants build on
and strengthen actors and forums in rural advisory ser- lessons learned in agricultural advisory initiatives and
vices through interaction and networking. GFRAS will enhance the use of knowledge and technologies by
link closely to regional networks such as AFAAS. actors in agricultural value chains.
Source: Authors.
farmers oriented more to markets or more to food as the “third sector,” consisting of NGOs and organizations
security). based on collective action. These providers can be organized
on the basis of who provides and who finances the services
Other policy issues related to pluralistic advisory ser- (table 3.2). The functions of service provision and financing
vices and extension include the changing roles of various often are separated to ensure that services are financed by
extension providers and the comparative advantage for dif- clients or the corresponding sector and reflect their
ferent providers in carrying out specific extension func- demands. Combinations of implementation and financing
tions and advisory services. For instance, publicly funded of services are presented in each cell of table 3.2.2
advisory services should not involve themselves directly in
the provision of physical inputs (including credit). Also,
Institutional base for sustainability
many bureaucrats still regard extension in a very linear way
that focuses on extension functions such as transferring Different aspects of sustainability can be considered with
technologies to ensure better food security. Paradigm shifts respect to advisory services, but most often the concern
must take place not only in the programs and the thinking involves the sustainability of financing. Several approaches
of field staff but in the thinking of extension administrators have been criticized for their lack of financial sustainability,
and policy makers. Finally, the sustainability of extension including the T&V system promoted in the 1980s and the
institutions is another major issue for policy to address more recent FFS approach (Quizon, Feder, and Murgai
(Swanson and Rajalahti 2010), as is equity. These three top- 2001; Anderson 2006). Current FFS programs, especially in
ics (the respective roles of public and private extension Africa, address sustainability in various ways, including
providers, sustainability, and equity) are covered in the revolving FFS funds, self-financing, and FFS loan and
sections that follow. repayment schemes. The use of farmer facilitators reduces
costs dramatically.3 More agribusiness development ser-
vices and market-oriented advisory services aim for farm-
Public and private sector roles
ers, the subsector, or the commodity chain to pay at least
In principle, agricultural advisory services can be provided partially for services.
and financed by the public sector, the private sector (indi- Sustainability can also be addressed through innovative
vidual farmers or companies), and what can be referred to modalities for financing advisory services. Cost-sharing
Third sector: Publicly funded Advisory service NGOs fund advisory FBOs hire own advisory
FBOs contracts to staff hired by service staff who are staff and provide
FBO providers FBO, farmers employed by FBO services free to
pay fees members
Sources: Birner et al. 2009, adapted from Anderson and Feder (2004, 44).
arrangements (such as those used in Uganda’s NAADS pro- oriented toward the development of businesses, markets,
gram) allow resources to be mobilized from various sources. and enterprises. Apart from absorbing these individual
These resources can be pooled and distributed to end-users capacities, public providers of advisory services will have to
based on demand. undertake major organizational changes, such as the use of
Stakeholder forums consisting of farmer groups create a performance-based contracts and incentives. Institutional
critical mass for services required from either public or pri- development is also important (IAP 2). Public advisory
vate bodies and can reduce service costs. Forums empower services must develop the institutional capacity to coordi-
farmers to identify and use selected qualified service nate and manage local extension systems. For example, they
providers (Government of Kenya 2005). Other potential will need the capacity to facilitate interactive learning
methods for mobilizing and managing funds include levies between different extension service providers.
on export commodities (Tanzania, Kenya), community-
driven development funds (Guinea, Kenya), and contracting
Gender and equity considerations
by the government (Mozambique) (Rivera and Alex 2004).
Financing for advisory services may also come from Women make up 60 percent of the rural population world-
resources provided through decentralization programs, the wide (Hafkin and Taggart 2001), yet they receive only 2–10
involvement of farmer associations and NGOs, contracting- percent of extension contacts and 5 percent of services
out of extension services, public-private partnerships, pri- (Swanson, Farner, and Bahal 1990). In sub-Saharan Africa,
vatization, and embedding advisory services in other types where women play a major role in agriculture and account
of contracts (Anderson 2007). More information on these for more than half of agricultural output, they continuously
subjects is available in module 3 of the Agriculture Invest- receive a less-than-proportional share of the total investment
ment Sourcebook (World Bank 2006b). in agriculture (Blackden et al. 2006; Quisumbing 2003).
Financing alone cannot guarantee the institutional sus- Only 7 percent of extension resources are spent on African
tainability of advisory services. Capacity within the advisory women (Blumberg 1994, cited in Haug 1999). African
service is another major concern. Extension workers must women remain especially disadvantaged in interventions
be able to apply new approaches that focus more on facili- relating to education, extension, capacity strengthening,
tating processes than on teaching models and are more empowerment, and market access (Rahmato 1993; Alawy
To ensure the proper implementation of extension invest- Source: Adapted from the website for the guide at
ments, M&E exercises and tools are crucial. Because GFRAS, http://www.g-fras.org/index.php/en/knowledge/
gfras-publications/file/20-guide-to-extension-evaluation,
attempts to monitor and evaluate extension and advisory accessed July 2011.
services have been weak or nonexistent, GFRAS developed a
guide for the evaluation of extension and advisory services
(box 3.11). General studies find high rates of return to
investments in advisory services, but the challenges and dif- Indicators are needed for judging the effectiveness of
ficulties in estimating the benefits are many. Efforts to extension programs, including the share of farmers with
strengthen the understanding of how to improve M&E in regular access to services and their perceived satisfaction
extension continue, but it is already clear that some of the with the services. Such indicators should not be limited to
most important components of M&E are participation by farmers but also developed for male and female producers,
all parties; the clear definition of objectives, indicators, out- other (mostly private) actors in the chain, and (local) gov-
puts, outcomes, and desired impact; continual assessment ernments (Spielman and Birner 2008). To monitor and
throughout the investment period; and the collection of evaluate pluralistic advisory services, output indicators
baseline data. Important indicators include benchmark and include capacity level in terms of business development
baseline indicators as well as input, output, outcome, and services and local certification services; management of
impact indicators (Swanson and Rajalahti 2010). For exten- pluralistic extension systems at the district level; and learn-
sive lists of indicators, see Swanson and Rajalahti (2010) and ing taking place between agencies. Outcome indicators include
Rajalahti, Woelcke, and Pehu (2005). the quality of investment plans to improve associations and
194
by the program. The variety in services demanded is then work together to provide extension services. Services can be
matched with the existing variety of service providers. provided by:
The emphasis is on coordination, which can lead to regu-
lation and performance-based contracts for additional 1. Subsectoral bodies representing private, market-oriented
services, all based on complementarity. Some systems are farmers, such as a coffee board or national commodity
self-organized (value chains driven by the private sector) association. This practice often occurs in cash crop sub-
and do not require this public role in coordinating service sectors such as coffee in Colombia, cotton in Benin,
provision. cashews in Tanzania, or the Kenya Tea Development
Agency (see box 1.22 in TN 4 of module 1).
2. Producer/farmer organizations and cooperatives, not
BACKGROUND AND CONTEXT
on the national level but at the meso level—for example,
FOR INVESTMENT
when a farmer association provides services through vol-
Aside from the trends mentioned earlier, the provision of unteer members, as in Mozambique’s National Union of
advisory services to smallholders in developing economies Smallholders or Mexico’s Produce Foundation (see mod-
is influenced by the decentralization of governments and ule 1, IAP 2)—and on the individual level (for example,
governance as well as by the deconcentration of public a milk producer cooperative or a vegetable producer
service delivery processes. In such dynamic environments association).
national agricultural extension services are starting to play 3. Local NGOs usually working with farmer groups and
new roles, based largely on principles of demand-driven community-based organizations, mostly in subsectors
planning, management, facilitation, and learning through that do not involve cash commodities but increasingly in
interaction. market-oriented services.
All of the newly recognized actors in advisory services 4. International NGOs (mostly donor-funded) usually
can equally bring about new ideas and innovations in agri- working with farmers’ groups and community organiza-
cultural extension, contributing to a system in which the tions in subsectors for cash and noncash commodities,
different roles can lead to synergy. National agricultural which may at times overlap, but also agri-agencies of
advisory service systems are attempting to capture these developed country farmer organizations.
institutional innovations by contracting-in different ser- 5. Governments that support activities under 1, 2, 3, and
vices at the district, provincial, and sometimes national lev- sometimes 4 in a sort of “joint venture” at the national,
els. Advisory services are growing more varied; rather than provincial/regional, or local/district level; or public
being limited to technology services, they are offering more agencies working with civil servants. In the public sector,
general information and brokering services (see TN 4). different extension systems (for example, for crops, live-
They also facilitate access to other services, such as financial stock, and forestry) can exist side by side within the same
and market information services, through different means, or different ministries. Many countries have taken a step
including the mass media and social media. forward in coordinating this multiplicity of public exten-
Advisory service providers increasingly vary as well. Tra- sion programs by adopting a unified (public) extension
ditionally, the private sector provided the more market- system.
oriented and business development services (TN 2), and the 6. Input suppliers and agrodealers supplying agrochemicals
public sector provided services focused on using technology and veterinary products and buyers of products (such as
to enhance agricultural productivity. In pluralistic extension buyers of flowers and fresh vegetables) (see IAP 1).
systems, the services in demand are supplied by the right 7. Private business contacts and relationships that provide
mix of providers. Certain service providers often perform informal advisory services, like playing a brokering role
specific advisory functions (as shown by the “x” in (TN 4). Increasingly, local business development services
table 3.3). The matrix in table 3.3 will differ in every situa- are also provided by financial services (microcredit
tion and context. It can be used to develop the best mix of organizations and banks), actors in the value chain, and
services required and can ultimately lead to pluralistic other private actors (TN 2).
extension, as described in box 3.12. 8. Village/community extension workers, often connected
Under pluralistic systems, different types of agricultural to input supply programs (such as cashew spraying ser-
and agribusiness advisory services or different providers vices or chicken vaccination). Lead farmers and local
Source: Authors.
* Bonding social capital through strengthening the group, bridging social capital through federation and unionizing, and linking social capital through developing the capacity of groups to
interact with other stakeholders (Heemskerk and Wennink 2004).
Box 3.12 Pluralism in Action: Government-Funded Public, Nongovernmental, and Privately Managed
Extension Systems in Mozambique
Mozambique became independent in 1975, but civil because the public sector remains the cornerstone of
strife prevented the government from establishing pub- Mozambique’s pluralistic extension system. Extension
lic extension services for its farmers until 1987. The activities are coordinated at the district level by local
government used (international) public funds to con- government officials. They coordinate NGOs, farmer
tract several local and international NGOs to organize organizations, and private service providers, whereas
and provide extension services to farmers in selected provinces (and also districts) may also outsource specific
regions. Over the years, the size of the public and NGO assignments complementary to the public extension sys-
extension systems has fluctuated from around 600 to tem. Long-term public financing for extension is crucial,
800 extension workers each. The government has also as it will be difficult, if not impossible, for low-income
outsourced some extension services. For example, it men and women farmers to pay for extension services
contracted several private, large-scale farmers, compa- themselves. Poor farmers will pay for specific services,
nies, and NGOs and hired an additional 200 extension such as cashew spraying and veterinary services, as these
workers under short-term contracts to focus on specific are embedded extension services, but they are generally
assignments. These combined actions have resulted in unwilling and unable to pay for advisory services that
an average of 10–14 extension workers in each rural deal with “public” knowledge and information.
district, who reach between 10 and 20 percent of farm The current publicly financed extension system
households. has three main programs laid out until 2015. First, it
The interplay of NGOs, the private sector, farmers, and will strengthen service provision in the public sector,
their organizations in extension has led over time to a new, the private/NGO sector, and farmer-to-farmer exten-
pluralistic extension system in Mozambique. The public sion. Second, it will empower farmer associations in
sector concentrates on strengthening and gradually planning, pursuing economic activities, and providing
expanding the size and improving the quality, accounta- services. Lastly, it will emphasize the coordinated man-
bility, and relevance of its public extension services, agement of service provision at the district level.
Sources: DNEA 2007; Swanson and Rajalahti 2010.
facilitators such as those working with FFSs are also regional), and national levels, particularly in providing
providing such services. coordination, technical backstopping, and knowledge
management. The public sector should facilitate learn-
The brokering and facilitation function can be per- ing and scaling up, as well as ensure quality assurance
formed by any of the entities listed above. This function in and oversight. Advisory service systems supported by
particular has become more important with the growing public funds are increasingly planned, financed, imple-
realization that catalyzing innovation involves more than mented, and coordinated at the district level. The meso
transferring knowledge and requires strong interaction level coordinates and implements crosscutting services
between a variety of actors (Klerkx, Hall, and Leeuwis 2010; (mostly on contracts), such as seed services, environ-
TN 4). Such interaction responds to a key concern within mental management services, food security services, and
AIS (TN 4). other services that extend beyond district boundaries.
The public sector at the national level plays a supportive
and backstopping role for all service providers and pro-
INVESTMENT NEEDED FOR INNOVATIVE
vides the enabling environment—conducive policies,
AND PLURALISTIC EXTENSION SERVICES
strategies, and regulations.
The principles discussed in the following list are central to ■ Decentralization. As local governments are empowered
pluralistic extension systems: to run their own affairs, it is becoming common (notably
in Anglophone and Lusophone Africa) for district gov-
■ Deconcentration. The public sector has an important ernments and administrations to operate a budget
but differentiated role at the local, meso (provincial, obtained from the treasury and allocated on the basis of
technical information and skills as well as sophisticated ent kinds of stakeholders in the value chain or innova-
facilitation and process skills (Blewett et al. 2008). More tion system are needed.
specifically, extension workers and their clients require: ■ Extension management skills. As emphasized previ-
ously, the presence of multiple actors and approaches in
■ Specific skills for planning and collaboration. Stronger pluralistic systems means that there is a strong need for
capacity is needed at the local level for planning, man- coordination to avoid duplication of effort and wasted
agement, and coordination. As noted, major attention resources. Managing pluralistic extension systems at the
must be given to enhancing facilitation skills. These local level requires individuals to develop new knowl-
skills are instrumental in the multistakeholder platforms edge, skills, and attitudes. Management of synergetic ser-
and processes that foster capacity development across vices for local economic development, outsourcing,
stakeholders in innovation systems. Skills for commu- M&E, and quality assurance must take place in a satis-
nication with male and female farmers as well as differ- factory manner. New performance plans and indicators
This sourcebook presents other examples of investments to Pluralistic extension systems are in principle more effective
support pluralistic extension services. Examples in this than other kinds of extension, but the outsourcing of pub-
module include enhancing facilitation and coaching skills lic services will act as a major drain on public resources if
(TN 4), capacity development in extension management not properly implemented. Outsourcing whole systems and
and the development of agribusiness services (TN 2), and creating parallel structures is costly and not very effective, as
green services (TN 2). shown by the experience with NAADS and pilot activities in
Mozambique (Heemskerk, Nederlof, and Wennink 2008).
Instead it has proven more effective and cost-efficient to
POTENTIAL BENEFITS OF
outsource specific functions, such as the development of
PLURALISTIC EXTENSION
bankable business plans. Enhanced coordination between
To recapitulate, the need for pluralistic extension arises public and private services at the local level will also make
from the perception that specific services are needed for the system more efficient, while quality control of service
specific contexts, economic enterprises, livelihood func- provision will make it more effective. The best mix of public
tions, and above all different farmer categories, based on and private service provision and the level of public financ-
differences in entrepreneurship, poverty and gender. The ing of such pluralistic systems will be subject to national and
development of pluralistic extension systems should local policies. These policies in turn will be determined by
enhance the competitiveness of local agricultural produc- the broad national vision for rural development, by locally
tion within the context of local economic development, empowered smallholders, the level of focus of local devel-
enhance local livelihoods, and ultimately reduce rural opment plans, and the relative strength of public and pri-
poverty, improve food security, and promote greater gender vate service provision. Other services can be provided in a
equality. Ideally, the outcome of pluralistic extension ser- better, or at least a more cost-effective, way by community
vices is that different client groups in different contexts are extension workers. In local development plans, coordina-
satisfied with their access to services that they have tion is planned and financial sustainability can be pursued.
Pluralistic extension systems are expected to better address Private extension service provision, although publicly
the wide variety of demands and at the same time make funded, contributes to the development of a new incentive
better use of the variety of service providers available. system in which the quality and content of extension pro-
Although eventually the right mix of services is determined vision is more responsive to farmers’ priorities. The transi-
by the client and through payment for services, in the fore- tion to a system with privatized extension modalities and
seeable future the public sector will still finance many of the improved incentives takes time, public investment, and
required services (also based on cost-sharing arrangements appropriate long-term plans. Private extension provision
but adjusted for different categories of farmers). requires well-trained service providers and a certain level of
Pluralistic extension systems aim to develop better service capacity among farmers and local governments. Farmers’
provision for all, based on the complementarity and synergy organizations must increase their capacity to contract,
of the public and private sectors. This public sector (at the manage, and evaluate private extension provision. Decen-
local, meso, and national levels) will need to play a strong tralized political structures need the capacity to manage
role in managing and coordinating extension activities in such systems.
such a way that demand is adequately addressed, service An evolution toward private extension modalities should
providers are accountable, quality is assured, and lessons are begin with themes that are most likely to elicit farmer
learned among service providers, who are in competition at demand and investment and are rarely provided by the pub-
the same time. Eventually this coordination and accounta- lic sector, such as the demand for agribusiness development
bility role will gradually shift to farmers and their organiza- services, particularly at the local level. Farmers in Ethiopia,
tions, once they will finance these services themselves. Uganda, Mozambique, and Kenya have all identified the
need for agribusiness development services (see TN 2). The
public sector is likely to retain its responsibility for financ-
Environmental implications
ing extension on themes such as environmental protection,
Demand for services related to wider environmental although private delivery modalities may prove useful
issues is increasing, owing to such factors as increasing (Chapman and Tripp 2003).
204
(including small-scale traders, processors, manufacturers, actors in the value chain, including national and interna-
and exporters) need sustainable sources of produce from tional exporters.2 The limited individual, organizational,
smallholders. Figure 3.1 depicts the roles of LBDSs in rela- and institutional capacity to develop small-scale agribusi-
tion to local product value chains. Box 3.13 summarizes nesses locally clearly remains a major constraint to market-
the effects of successful LBDSs in Uganda. oriented production.
Capacity for providing business services is generally
confined to nonprimary production and/or medium-scale
enterprises in the private sector in urban areas. In rural INVESTMENT NEEDED
areas, the public sector and civil society provide most advi- Different forms of investment can strengthen agribusiness
sory services and concentrate on agricultural production. development services catering to diverse groups of farmers
In their current form, these advisory services cannot cope and entrepreneurs. These strategies include reforming
with farmers’ growing demand for services oriented to public extension systems (building capacity and balancing
markets and value chains. Nor can they cope with growing public and private service provision), developing the
demands for sustainable sources of produce from other capacity for private LBDSs, and developing agribusiness
centers for service provision and learning. In practice, a
mix of strategies is usually followed, as in pluralistic exten-
Figure 3.1 Roles of Local Agribusiness Development
sion systems (TN 1).
Services in Relation to Actors in the
Agricultural Product Chain and to Support
Services
Reforming public service providers and offering
services through public and private channels
Farming Input supply
enterprises Public extension systems can respond to demands for local
business development through various combinations of
Local
agribusiness
reforms involving capacity building, reorganization, and
Trading Financial
enterprises development services complementary public, private, and nongovernmental ser-
services vice provision. Some public systems strengthen competen-
Processing cies in business development by reorienting programs and
Markets
enterprises staff; others choose to recruit personnel with the required
skills (usually recent graduates of universities and profes-
Sources: Adapted from Wilk and Fensterseifer 2003; Roduner 2007; NAADS
2010 (unpublished); and KIT and IIRR 2010. sional training institutes). Mozambique strengthened
capacity to provide more market-oriented, demand-driven
services by outsourcing some services to large-scale farm-
ers, companies, and NGOs (see box 3.12 in TN 1) and
Box 3.13 Effects of Local Business Development involving more smallholders in Farm Business Schools and
Services for Farmers in Uganda in developing business plans. At the district level,
Mozambique organized farmer-promoters to supply
advisory services and inputs (box 3.14). In Ethiopia and
In Uganda, local business development services Uganda, business services were provided by cooperative
were identified as offering the key support unions to primary cooperatives (see http://apf-ethiopia
required to prepare business appraisals, develop .ning.com/page/business-development and http://apf-
marketing plans, apply for bank credit, and uganda.ning.com/page/farmers-organisations). Some busi-
obtain advice on financial and legal matters. ness development services are simply unavailable from
Farmers’ demand for these services widened
the public advisory system and need to be outsourced to
the involvement of private agricultural service
the private sector or civil society, as with NAADS in
providers in helping farmers with market-
oriented production. Uganda (box 3.15) (Friis-Hansen and Aben 2010; van
Weperen 2011).
Sources: NAADS 2010 (unpublished); Friis-Hansen and Some countries leave the provision of business develop-
Aben 2010. ment services solely to private entities such as produce
boards (for any number of commodities, such as cotton,
MODULE 3: THEMATIC NOTE 2: FARMING AS A BUSINESS AND THE NEED FOR LOCAL (AGRI-) BUSINESS DEVELOPMENT SERVICES 205
coffee, and cashews) or value chains with their own brands
Box 3.14 Farmer Agribusiness Promoters
(box 3.16). The risk is that services geared to the demands
in Mozambique
from particular subsectors or value chains will exclude
many small-scale farmers and entrepreneurs. One possi-
Owing to major public and international NGO bility is to provide startup capital for private providers of
investments in agribusiness at the district level in business development services at the local level, based on
Mozambique, farmers’ demand to become more business plans and matching funds, and at the same time
market-oriented has grown rapidly. Because only a offer incentives for current public and private business ser-
limited number of public extension workers could vice providers to meet the needs of small-scale entrepre-
meet that demand, District Services for Economic neurs rather than focusing exclusively on medium-scale
Activities (SDAE, Serviço Distrital de Actividades operations, as done in Mozambique.3
Económicas) involved large numbers of farmer- An important aspect of these various innovations in
promoters in different advisory services. Farmer
offering LBDSs is that public advisory systems need mech-
promoters are involved in small-scale input supply
anisms to capture and share the lessons emerging from
and related advisory services, such as cashew
spraying, chicken vaccination, groundnut pest them. They must open up and develop alliances and net-
control, and similar activities. Smallholders with works for learning and interaction between different actors
knowledge related to market access increasingly from different value chains and services, especially through
participate in the development of smallholder partnerships, multistakeholder platforms, and networks
business plans, as pioneered by NGOs in various (www.kit.nl; http://www.delicious.com/tag/apf_ethiopia).
Local Economic Development Projects. The
Farmer Field School (FFS) program, in which
farmers serve as facilitators, has been expanded to Developing private capacity to deliver
all provinces. The Field School approach is also local business services
used widely for enhancing market-oriented farm Service providers’ skills can be strengthened through a series
management in Farm Business Schools. of related investments at different levels. Often an initial
Sources: DNEA 2007; Kahan 2007, 90–92. step is to develop the capacity of existing, often urban-
based private organizations to work in rural areas with
The National Agricultural Advisory Services (NAADS) As a result of these efforts, more small-scale com-
program sought to enhance small-scale entrepreneur- mercial farmers started to emerge, and their produc-
ship through efforts to develop value chains and widen tion rose to such an extent that more organized mar-
access to market-oriented production services. Since keting and agroprocessing facilities were needed. The
2002, NAADS have made considerable progress. About private enterprises and private service providers
50 enterprises have been selected for development and emerging to support this growth still require capacity
promotion, more than 45,000 farmer groups were building and enabling policies to sustain their devel-
engaged in market-oriented enterprise development opment. Other challenges remain in scaling up the
and promotion, and 200 higher-level farmer organiza- successful aspects of NAADS. Access to credit and
tions were established. Public-private partnerships inputs can be problematic, and farmers’ empowerment
were formed to support a substantial number of out- in value chains is still limited by a lack of capacity,
grower schemes involving “nucleus” farmers. The information asymmetries, poor links among key play-
nucleus farmer strategy encourages small-scale farmers ers along the value chain, and markets characterized by
to increase their market orientation by providing low activity, low volumes, and other symptoms of poor
value-adding and agroprocessing facilities as well as competitiveness. Additional public investment is
links to markets. needed to complement the efforts of the private sector
in developing agribusinesses at the smallholder level.
KILICAFE is the name of a brand and farmer organiza- KILICAFE provides technical advisory services and
tion for specialty Kilimanjaro coffee. The smallholders training, such as training farmers in production meth-
who are members of KILICAFE have come to play a ods to improve the quality of their product, training in
major role in interactions with agricultural service central pulping unit operations, and training in busi-
providers, including providers of research, advisory, ness management. These services are provided at the
financial, and input services. Aside from linking pro- Farmer Business Group level through seminars that are
ducers to markets, traders, and millers, KILICAFE pro- open to all members. In addition, leadership training
vides a range of services to its members. At the Farmer is conducted at the chapter level for all Farmer Business
Business Group level, KILICAFE provides pulping ser- Group Management Committee members (chairper-
vices; at the chapter level, it works to strengthen Farmer sons, secretaries, and treasurers). This leadership train-
Business Groups; and at the national level, it offers ing empowers smallholder farmers to own fixed assets,
marketing and financial services. Services include which can be used as collateral for bank loans. KILI-
credit links and financial management of loans for CAFE also provides communication services such as a
working capital and for establishing central pulping quarterly newsletter, radio broadcasts, and website
units. KILICAFE sources financing from donors and/or (www.kilicafe.com), all containing information on cof-
financial institutes to purchase central pulping units fee price trends, a farm activities calendar, association
and issues repayments from coffee sales to the Farmer events and activities, and new developments.
Business Group on four-year term loans. Input credits Farmer Business Group members also demand
are organized at the chapter level, where each chapter other services from KILICAFE, such as supplying
Annual General Meeting sets limits on how much to agricultural inputs well in advance. Some groups want
spend on inputs per kilogram. These credits are not KILICAFE to clearly specify coffee processing quality
cash loans but guarantees to input suppliers for future standards and ensure adherence by all Farmer Busi-
payments. Marketing is done by sending green coffee ness Groups. To achieve uniform quality and obtain
samples to the Coffee Board (for buyers at local auc- premium coffee prices, producers need to use only rec-
tions) and shipping samples directly to overseas coffee ommended technologies, although low prices also influ-
roasters (for direct exports). ence the adherence to quality-enhancing standards.
entrepreneurial smallholders (TN 4). Another important institutes, and vocational training institutes need support to
building block is to strengthen the capacity of private busi- update their curricula to reflect the growing demand for
ness development service providers in rural areas to support capacity in agribusiness, marketing, and entrepreneurial
local development of basic farm business plans, market skills. A vital part of curriculum change is for these institu-
studies, and feasibility studies (DNEA 2007). Comple- tions to develop the capacity to train, coach, and support
mentary investments involve developing multistakeholder local providers of agribusiness development services (see
innovation platforms or networks to assemble all actors in a http://ruforuminnovationsproject.blogspot.com). One such
particular value chain at the local level (to initiate collective initiative is Business Minds Africa: Professionals for Agri-
action for local business development) and at the national cultural Entrepreneurship in East-Africa (http://www
level (primarily for advocacy). Investments in Farm Busi- .businessmindsafrica.org), a partnership between East
ness Schools, such as those implemented through FAO African Universities, RUFORUM (see module 2), Interna-
in Botswana, Kenya, Malawi, Nigeria, and Zambia, will tional Institute of Rural Reconstruction (IIRR), the Royal
assist farmers in expressing demand for LBDSs (Kahan Tropical Institute, and Van Hall Larenstein University of
2007:90–92; Malindi 2011). Finally, management capacity Applied Sciences, Wageningen.
will be needed at the district or local government level to
match the demand and supply of LBDSs (TN 1) in addition
Business development service centers
to registering, supervising, and evaluating them.
The source of human resources to provide LBDSs Another potential area for investment is to provide services
must not be neglected. Universities, professional education through a “one-stop shop” mechanism, in which any
MODULE 3: THEMATIC NOTE 2: FARMING AS A BUSINESS AND THE NEED FOR LOCAL (AGRI-) BUSINESS DEVELOPMENT SERVICES 207
number of services (technological, business development, POTENTIAL BENEFITS
financial, and input supply, for example) are offered in a
The potential benefits of LBDSs for smallholder farmers
central location. These services centers can have additional
include increased entrepreneurial knowledge, better market
objectives of learning and training and are mostly run
linkages, enhanced access to credit, and better marketing
through public-private partnerships. Examples include
opportunities. Smallholders have expressed this demand and
agribusiness centers (box 3.17), agribusiness incubators,
given the opportunity will refocus extension on these more
and local economic development agencies, all of which
market- and value chain-oriented agricultural advisory ser-
could be designed to provide integrated LBDSs for small-
vices (Webber and Labaste 2010; Friis-Hansen and Aben
scale farmer entrepreneurs. Services could include starting
2010; KIT, Faida Mali, and IIRR 2006). Services to develop
and registering a business, farm business planning, access to
local farming businesses provide support to producers,
finance, training, and technical advice. Agribusiness incuba-
traders, processors, and other actors farther along the value
tor programs support emerging small-scale farm businesses
chain. Each group has different needs and requires different
and build capacity through learning by doing (box 3.18;
funding arrangements, which can be local, regional, or
see also TN 3 in module 5). Local economic development
national. Service providers can also support the development
agencies, funded by the public sector, foster public-private
of local economic development plans and strategies. Antici-
partnerships at the local level (examples have been docu-
pated impacts among smaller-scale farmers and entrepre-
mented in Mozambique; see UNCDF 2009).
neurs include enhanced rural income (both directly and
Investments are also needed at a higher level for mentor-
through employment) through enhanced small-scale entre-
ing and coaching these services. As part of public invest-
preneurial activity, based on the use of local resources and
ment programs, national capacity should be developed for
competitiveness (Webber and Labaste 2010).
supporting business development services at the district
level, with the aim of establishing and strengthening private
POLICY ISSUES
local providers (boxes 3.14 and 3.18). In Mali (box 3.18) and
Mozambique (Eduardo Mondlane University’s Sustainable LBDSs, public as well as private, need an enabling envi-
Trade Academy in Chibuto), an agribusiness incubator con- ronment to make an impact. Wherever options and oppor-
cept was also used to improve university graduates’ capacity tunities exist with respect to financial services, and wherever
in small-scale enterprise development. markets and market infrastructure exist and function
Box 3.17 Casas Agrárias in Mozambique: Lessons from One-Stop Agribusiness Centers
Around the town of Lichinga in Mozambique’s Niassa (four to five) from public or nongovernmental agencies,
Province, farmer associations established Casas Agrárias trained in input and output marketing. Important
with support from OIKOS (a Portuguese NGO) and lessons from the Casas Agrárias are that investment in
Estamos (a local NGO). Casas Agrárias are agribusiness these centers must focus on developing capacity
centers for marketing crops—for example, they can among at least four to five people for each center to
offer temporary storage and processing facilities—and maintain its services, training staff and farmers
facilitating access to credit, inputs, and agricultural in agribusiness management, and offering specialized
advice. The centers’ processing activities include milling training in storage and input supply for farmers
maize, processing rice, and extracting vegetable oil from and cooperatives. Another lesson is that Casas
groundnuts and sunflowers. The Casas Agrárias are spe- Agrárias need to become sustainable and autonomous.
cial entry points for supporting public-private partner- As soon as possible, they must be handed over to
ships, developing capacity in farmers’ cooperatives, farmer cooperatives and unions to operate, supported
and involving national and provincial farmer organiza- with adequate financial and administrative manage-
tions. Farmer management committees manage these ment training, and linked with district savings
centers, which have a limited number of extension staff schemes.
Source: Authors.
Business incubators are programs designed to accelerate develop more skills and change mindsets related to
the successful development of entrepreneurial activities promoting small-scale agribusiness in Mali and the
through an array of business support resources and United States.
services, developed and orchestrated by incubator man- The Cheetah Network supported male and female
agement and offered both in the incubator and through graduate students from the agricultural university in
its network of contacts. Incubators vary in the way creating a number of entrepreneurial incubators
they deliver their services, in their organizational struc- (essentially, small clusters of small-scale enterprises
ture, and in the types of clients they serve (see module 5, focused on a similar goal). One cluster involved a
TN 3). women’s cooperative in Zantiebougou focused on
Mali’s national agricultural research organization producing, processing, and storing shea butter for
(Institut d’Economie Rurale, IER), national agricul- export and on developing a high-quality market
tural university (Institut Polytechnique Rural de for its products in the United States and Canada.
Formation et de Recherche Appliquée, IPR/IFRA), Another cluster involved the production of certified
United States universities, and small-scale subsistence seed potatoes in Borko and Gao for regional export.
farmers formed an alliance to develop the Mali The entrepreneurial incubators have strong elements
Agribusiness Incubator Network (“Cheetah Network”). of learning for farmers as well as graduate students
Through its business incubators, the network identifies and staff. They aim at institutional sustainability
and assists entrepreneurs in efforts related to agricul- through their links with research and the university
ture. The alliance led university staff and graduates and at financial sustainability through the introduc-
to review and revise course curricula significantly to tion of fee-for-service systems.
properly, LBDSs can be appropriate. National policies and ■ Local governance. Local governance influences the local
local government regulations (for example, those governing development context (including prevailing policies),
input supply and marketing) must foster the development which influences investments in developing private
of entrepreneurship by ensuring a level playing field, and agribusiness services (Friis-Hansen and Aben 2010).
public agencies must not interfere in input and output mar- Elements of the local development context that influence
kets. Additional policy issues for LBDSs include: LBDSs include: (1) the emphasis on local public-pri-
vate partnerships, (2) synergy between local economic
■ Social targeting. Small-scale agribusiness entrepreneurs development programs oriented to value chains and
often constitute only 1–2 percent of rural households, yet livelihood systems, (3) the involvement of farmer organ-
emerging small-scale entrepreneurs may constitute up to izations; and (4) local capacity to manage multistake-
25 percent. Another large category of households has holder platforms, networks, and interaction between
limited capacity for risk, focuses on food security, and service providers (TN 1).
relies on multiple income sources (remittances, local ■ Public and private sector roles. Policies influence
agricultural labor, petty trading, and others). Policies whether and how interaction between value chain actors
that support efforts by these groups to organize—in and private supporting services are brokered by public
cooperative enterprises, outgrower schemes, contract agencies, locally and nationally (Webber and Labaste
farming, and farmer shareholding in marketing and pro- 2010). Locally, the public sector is more prominent in
cessing enterprises—make it easier to address their var- empowering farmers through local economic develop-
ied entrepreneurial capacities and level the playing field. ment, whereas the private sector often predominates in
Close attention should also be given to the implications value chain development. These roles need to become
of gender in value chain development and agribusiness synergetic for value chain integration (KIT, Faida Mali,
development services.4 and IIRR 2006). Three additional considerations affect
MODULE 3: THEMATIC NOTE 2: FARMING AS A BUSINESS AND THE NEED FOR LOCAL (AGRI-) BUSINESS DEVELOPMENT SERVICES 209
public and private sector roles in LBDSs. First, LBDSs ■ Sustaining local service provision. For LBDSs to be sus-
facilitate integration between farmers and others in the tainable, they must be supported by the value chain
value chain, increasing the likelihood that value chain actors or customers involved (see module 5). In the tran-
partners will provide financial services for farmers (KIT sition to more value chain- and market-oriented produc-
and IIRR 2010). Second, private LBDSs tend to have tion, however, the public sector has a role in providing
greater capacity for facilitating access to financial ser- services, especially to smallholders who cannot afford
vices. Third, public support is needed to develop the them at first. Farmers indirectly finance services for
capacities of service providers, coordinate local traditional export commodities and are beginning to do
providers, empower farmers, and provide professional so in emerging value chains (IAP 3 gives other examples
and vocational training in business development.5 of embedded services).6 Some national programs
■ Local entrepreneurs and environmental services. LBDSs have partial fee-based systems for delivering LBDSs,
can support smallholders in identifying incentives for including Uganda (for NAADS; see box 3.7 in the mod-
sustainable production, coping with the effects of climate ule overview) and Azerbaijan (Lamers et al. 2008).
change, supplying green services (to enhance farmers’
ecosystems or sustain the environment), and addressing
LESSONS LEARNED
demands from specific value chains (organic food).
Incentives can include sharing in the profits from As the examples in this note indicate, much of the experience
forestry concessions, hunting licenses, and carbon emis- in providing LBDSs to small-scale farmers, cooperatives, and
sion rights; premium prices for certified organic pro- other agricultural entrepreneurs has been gained through
duce; or agronomic strategies promoted by the public pilot projects funded by donors and NGOs. National pro-
sector to prevent soil nutrient mining (Odada et al. 2008; grams for advisory services, such as those in Tanzania,
Pyburn, van der Lee, and ter Heegde 2011; box 3.19). Mozambique, and Uganda, have started to incorporate these
Box 3.19 A Successful Business Model for Mozambique’s Farmers to Provide Environmental Services
With the support of a specialized service provider, and the fires that they prevent. For example, Felicio
Envirotrade, a prize-winning community project in Lucas Melo, 33, has two plots that can sequester over
Mozambique developed a successful business model for 55 tons of CO2 per year, earning him US$244 in direct
the sale of carbon offsets to support the conservation of payments and an additional US$25 that is paid into the
forests and the planting of new ones. The scheme, one community carbon fund, which is used for improve-
of three winners of an international climate grant com- ments to schools, clinics, and wells.
petition, is being rolled out to other environmentally Envirotrade is a Mauritius-based company with
sensitive sites in Africa.a Sustainable farming practices offices in both the United Kingdom and South Africa
introduced as part of the Nhambita Community Car- and project operations in Mozambique. Its business
bon Project increased cashew and fruit yields and model is not a substitute for resolute international
improved livelihoods for about 1,300 families. Since its action to address the issues associated with human-
launch six years ago, the initiative, based in the buffer induced climate change, but it offers a means for con-
zone of the Gorongosa National Park, has traded more cerned businesses and individuals to link with forest
than 120,000 tons of CO2, earning the community over farmers in developing countries to change how natural
US$1 million. Participants are paid for carbon stored resources are used and reduce harmful environmental
by the trees they plant, the forests that they manage, impacts.
MODULE 3: THEMATIC NOTE 2: FARMING AS A BUSINESS AND THE NEED FOR LOCAL (AGRI-) BUSINESS DEVELOPMENT SERVICES 211
Mozambique cost US$300 to move a loosely formed asso- that the innovation required for farmers to improve the
ciation through seven steps to become a registered, market- quality of their produce cannot be sustained by farmer
oriented cooperative qualified to obtain financial services. organizations without proper incentives or premiums
(box 3.16).
Implementing business development
services at the local level Developing dedicated agribusiness
service organizations
Business development is about chain development, facili-
tated by chain mapping and assessment (market orienta- The primary element for success in establishing local busi-
tion and risk assessment; local versus international mar- ness development centers is to base the intervention on local
kets; fostering an enabling business environment); chain human and financial resources, which means that practi-
engagement (developing a vision; building trust); chain tioners must emphasize linking with product marketing and
development (participatory approach and ownership; processing, creating links with savings and credit activities,
addressing risks and savings; engineering an organizational developing cooperatives, and building capacity. More
development program; promoting entrepreneurial atti- specifically (see the discussion of incubators in module 5):
tudes); chain monitoring and evaluation; and chain learn-
ing and innovation (KIT, Faida Mali, and IIRR 2006, Web- ■ An agribusiness center requires a critical mass of staff
ber and Labaste 2010). trained in agribusiness management (at least four or five
Services to develop small-scale farming businesses have a people) to maintain its services. Ideally it is governed
central role in facilitating access to input and financial ser- with involvement from the private sector, but for small-
vices, but they have no role in directly supplying inputs and holder producers it is often also supported by the public
rural finance, which occurs in embedded services (IAP 3 sector. Centers require adequate links with market actors,
and Roduner 2007). A distinction must be made between input suppliers, and financial services, including local
business development services and financial services. The credit and savings schemes.
public sector has a role in providing LBDSs to smallholders ■ Incubators can incorporate an element of capacity build-
but not in directly providing financial services. ing for more business-minded and market-oriented ser-
Who pays for LBDSs remains a major dilemma. If vice providers through interactions with universities or
agribusiness services are fully subsidized, the services business schools. This interaction builds capacity in the
provided may not genuinely arise from agribusiness staff of the business development center, builds capacity
demands, private services may be crowded out, and the in the students involved in the work, and influences the
financial sustainability of the services will remain uncer- content of the related academic programs.
tain. If services are to be fully supported by the demand, ■ Through training in financial and administrative man-
larger enterprises may be able to pay, but others may be agement, centers must become autonomous as soon as
excluded. Involving other value chain actors in financing possible and handed over to farmer organizations (local
local services for enhanced quality of production increas- and national) and/or the private sector.
ingly appears to be the most sustainable approach (KIT
and IIRR 2010). All programs directed at developing local agribusiness
To be scaled up, successful models of agribusiness services must give considerable attention to fostering a
development require a systems approach that pays atten- long-term commitment to building these institutions in a
tion to access to credit, access to high-quality inputs, the stable policy environment as well to strategies that will
development of farmers’ capacity, and the formation of ensure financial sustainability, based on cost sharing for the
public-private partnerships (box 3.15). A final lesson is services that are delivered (World Bank 2010).
213
Table 3.5 Shifting Extension to Extension-Plus
Aspect of extension Shifts from: Shifts to:
Form/content of extension Technology dissemination Supporting rural livelihoods
Improving farm productivity Improving farm and nonfarm income
Forming farmer groups Building independent, farmer-operated organizations
Providing services Enabling farmers to access services from other agencies
Market information Market development
Monitoring and evaluation Input and output targets Learning
Planning and implementation strategy Doing it alone Through partnerships
Sources of innovation in extension Centrally generated blueprints Locally evolved (through ensuring right kind of support for
for wider implementation local experimentation), with diverse approaches and
multiple partners
Role of technical research Technology development Source of technical expertise and supporting adaptive research
Approaches Fixed/uniform Evolving/diverse
Capacity development of staff Training Learning by doing, facilitated experimentation
Capacity development of extension Personnel and infrastructure Development of linkages and networks
system
Policy approach Prescriptive/blueprints Facilitating evolution of locally relevant approaches
Introducing new working practices Staff training Changing organizational culture through action learning
Underpinning paradigm Transfer of technology Innovation systems
time enhance the ability of other actors in the AIS to sup- 3.20 provides three examples—two from India and one
port producers in an integrated way. Table 3.5 describes key from Bangladesh—of initiatives that served as nodes linking
shifts needed to operationalize extension-plus. producers to technology and nontechnology services,
including marketing. Each initiative supported the devel-
opment of user groups that became the basic units for
INVESTMENT NEEDED
implementing programs. For example, in India’s Kerala
The most innovative investment element of this approach is State, where smallholder and marginal farmers dominate
the explicit acknowledgment that investment should be agricultural production, almost 93 percent of land holdings
concerned with creating or enhancing the capacity of the are marginal (less than 1 hectare), and about 5 percent are
current innovation system for interaction and coordinated small (1–2 hectares). Kerala imports around 80 percent
action, so that the producers receive a wider range of sup- of its fruit and vegetable requirements, primarily from
port and services. Extension organizations traditionally neighboring states. In view of this dependency, the larger
have some capacity for interaction with research. In this objective of the program described in box 3.20 was to
case, however, extension has to widen its networks to develop a replicable model for horticultural development
connect producers with different sets of service providers. to diversify agriculture. The model, piloted in seven dis-
This means that extension should partner with a number tricts, was scaled up to cover all districts in the state after
of different agencies and develop specific arrangements in donor funding ended.
line with local circumstances. Investments should focus In the second example in box 3.20, BRAC (an inter-
on encouraging and enabling staff capacity to initiate small national NGO) shifted from community development in
experimental projects in partnership with other organi- Bangladesh toward a more targeted approach based on vil-
zations. By facilitating small projects experimentally and lage organizations in 1977. Currently BRAC’s operations
assisting staff to reflect on their meaning and outcomes, reach about two-thirds of the population of Bangladesh.
these investments will build skills related to experimen- BRAC’s outreach covers all 64 districts and 78 percent of
tation and learning. Table 3.6 summarizes the kinds of villages in Bangladesh. Eighty percent of its funds are inter-
investments needed under extension-plus. nally generated.
All current extension-plus arrangements have emerged In the second example from India in box 3.20, a program
from small pilot efforts that have expanded their scope and to foster horticultural production in South Gujarat
service provision based on experimentation, learning, and expanded from 44 families in 1982 to more than 23,000
adaptation to local circumstances over a period of time. Box families in 2010. Most activities are now managed by
Source: Author.
Kerala Horticultural Development Programme, India. it ended in December 2001, KHDP reinvented itself
Conceived in 1992, the Kerala Horticultural Develop- as the Vegetable and Fruit Promotion Council, Kerala
ment Programme (KHDP) aimed to improve the cir- (VFPCK, www.vfpck.org), a company in which 50 per-
cumstances of Kerala’s fruit and vegetable farmers by cent of the shares are held by producer groups. Since
increasing and stabilizing their incomes, reducing pro- then, VFPCK has expanded its activities, coverage,
duction costs, and improving the marketing system. and funding sources, obtaining some funds from gov-
The KHDP worked with fruit and vegetable farmers to ernment programs. All programs related to fruit and
promote self-help groups. It trained three farmers from vegetable promotion are undertaken through VFPCK,
each group to become master farmers who could deal whose approach was eventually extended to all districts
with production, credit, and marketing. It promoted in Kerala. The company directly reaches more than
the concept of credit to farmers who leased land, pro- 132,000 vegetable and fruit farmers in Kerala.
moted group marketing, and established modern seed BRAC’s Economic Development Programme. The
processing and fruit processing plants. To generate and Economic Development Programme of BRAC (an
access locally relevant technical knowledge, KHDP international NGO that originated as the Bangladesh
entered into contract research with the local agricul- Rural Advancement Committee) is the cornerstone for
tural university and strengthened the skills of farmers all of BRAC’s development work in Bangladesh. The
in participatory technology development. The total Development Programme covers microfinance, insti-
outlay for KHDP was €36.76 million, of which the tution building, income-generating activities, and
European Commission contributed 78 percent and the program support enterprises (such as seed production,
state government contributed the remainder. Though disease diagnostic labs, and produce processing and
(Box continues on the following page)
MODULE 3: THEMATIC NOTE 3: EXTENSION-PLUS: NEW ROLES FOR EXTENSION AND ADVISORY SERVICES 215
Box 3.20 Extension-Plus: Examples from the Field (continued)
marketing). While BRAC believes that microfinance is Foundation, works in 200 tribal villages in Valsad,
necessary to break the cycle of poverty, it places equal Navsari, and Dangs Districts of South Gujarat.
importance on microenterprise development services DHRUVA’s Wadi Programme, which facilitated the
to maximize the return obtained by the poor. Unlike establishment of fruit orchards (wadis) on land belong-
standard business development programs, which offer ing to poor tribal families, started with 44 wadis in
some mix of generic training and marketing services, 1982. Village-level peoples’ organizations have been
BRAC has developed an integrated, sector-specific pivotal in implementing the Wadi Programme’s activi-
approach to enterprise development for the poor. ties. The organization encouraged the formation of a
BRAC has identified six sectors in which large numbers cooperative for wadi farmers in the Vansda area to help
of low-income women can be productively engaged at them market their produce collectively. Produce from
or near their homes: poultry, livestock, fisheries, seri- cashew and mango trees is sold to the cooperatives,
culture, agriculture, and social forestry. For each of which in turn sell them to the apex cooperative.
these sectors, BRAC has developed a set of services that DHRUVA helped the cooperative design appropriate
comprises training in improved technologies, ongoing systems to preserve and process horticultural produce
supply of technical assistance and inputs, monitoring (including cashews, mango pickles, jams, and jellies)
and problem solving as needed, and marketing of and access local and urban markets under its Vrindavan
finished goods. BRAC evolved this model through brand name. Today, over 23,000 families from 400 vil-
continuous iteration and experimental learning. This lages have adapted the wadi model. Huge tracts of
program has so far organized 8.45 million poor and wasteland have been converted into orchards, which
landless people into 284,825 village organizations, have contributed to improved livelihoods and the
which are the basic units of the program. regeneration of natural resources. The project received
The Wadi Programme of Dharampur Uththan funding from donors (including KfW) as well as
Vahini, India. Dharampur Uththan Vahini (DHRUVA, government support for rural employment, tribal
“Vanguard of Awakening in Dharampur”), an associate development, and funds from the National Bank for
organization of the BAIF Development and Research Agriculture and Rural Development.
The good practices followed by KHDP and its succes- US$20 million. The council supports these commit-
sor organization, VFPCK, produced a number of tees with infrastructure on a limited scale.
impacts: ■ Through its modern seed-processing plant, VFPCK
produced more than 38 tons of seed for 19 vegetable
■ The program promoted the concept of organizing varieties in 2008–09, thereby contributing 50 per-
self-help groups of vegetable and fruit farmers and cent of Kerala’s internal seed production. Through
training certain farmers from each group in specific participatory technology development trials with
skills. VFPCK currently works with about 6,800 self- farmers, the council is promoting the cultivation of
help groups, of which 405 are run by women, and vegetables in the cool season.
reaches more than 132,000 farmers. ■ The council established a modern fruit-processing
■ By working closely with 11 commercial banks, the factory with farmers as stakeholders. Products from
program could help farmers obtain credit for this factory are traded in domestic and international
cultivation of leased land. More than US$5.6 mil- markets.
lion in credit was distributed in 2008–09, and ■ An external evaluation and impact study of KHDP
VFPCK also developed credit-linked insurance by the Xavier Labour Research Institute reported a
for farmers. significant increase in area under fruit and vegetables
■ Group marketing was promoted by establishing in 86 percent of the self-help groups and increased
markets where farmers could bulk their produce for incomes in 75 percent of the groups. The same study
sale to traders and improve their bargaining posi- also reported that the number of farmers receiving
tion by obtaining information on market prices credit increased from 21 percent in the pre-KHDP
inside and outside Kerala. In 2008–09, more than period to 41 percent by 1999, with an increase in the
200 VFPCK Farmers’ Markets operating across efficiency of loan disbursal and an increase in the size
Kerala sold 87,000 tons of produce valued at of the loans.
Table 3.7 Indicators That May Be Useful for Monitoring and Evaluating an Extension-Plus Approach
Output indicators Outcome indicators
– Farmer groups or producer associations formed; groups’ – Increase in income, production, productivity; additional
sustenance, maintenance of records employment created
– Formation of new markets; marketing and price realization – Sustenance of the arrangement; continuance, expansion, and impact
– Training organized – Enhanced capacity for collaboration and continuance of good practices;
– New inputs and technologies distributed and/or purchased new partnerships formed; other institutional changes generated
and used – New funding generated
– Access to credit; credit use and repayment – Ability to respond to new demands
– New value-added products developed – Governance mechanisms: how different stakeholder views are
– Infrastructure developed; capacity utilization expressed and quality of response
– Partnerships, new working arrangements, or new areas of
collaboration; quality of interactions
– Reforms promoted; changes in guidelines related to
funding and collaboration
Source: Author.
plan, implement, and evaluate extension centrally, which tradition of assessing performance in terms of technology
can stifle any divergence from prescribed procedures and adoption and upward accountability for resource utilization
restrict innovation and learning, particularly by mid- and rather than by examining whether outputs were achieved
lower-level staff. In many instances, extension maintains a and whether clients are satisfied. The reluctance to change
MODULE 3: THEMATIC NOTE 3: EXTENSION-PLUS: NEW ROLES FOR EXTENSION AND ADVISORY SERVICES 217
is reinforced by an extension policy dialog that continues LESSONS LEARNED
to be couched in terms of a narrow conceptualization
Implementing the extension-plus approach can involve a
of extension as an agency transferring technology and
number of challenges:
improved practices from research stations to farmers
(Sulaiman and Hall 2005). ■ The fact that the final program details cannot be visual-
ized in the beginning can make donors and national gov-
Public and private sector roles ernments slightly uncomfortable. As the approach can be
implemented only as a series of experiments, resource
A first step in operationalizing extension-plus is to reach allocation in the initial stages can only be tentative.
broad agreement that extension must be reinvented as a ■ The approach requires high-quality human resources
nodal agency that provides technological and nontechno- at different levels, representing more diverse kinds of
logical services to farmers. In other words, extension will expertise. Human resource costs as a percentage of the
need to partner with a large number of other public, pri- total investment can be quite high.
vate, and NGO agencies that provide many of the addi- ■ Partnering with organizations with diverse types of
tional services that will be in demand. In most settings, expertise is critical. Partnering is not an easy task for
partnership among these agencies has been the exception organizations that have a long history of isolated or inde-
rather than the rule, given the great level of mistrust among pendent functioning. In such cases, implementation
them. Extension can play its wider role only after under- could be slow.
going large-scale restructuring and institutional changes, ■ Only when the organization has sufficient flexibility to
which extension bureaucracies often have been reluctant deal with administrative and financial issues will this
to undertake. Some of these changes include a broadened approach flourish. The program should have opportu-
mandate, partnership and learning as key operational nities for reflection and learning and sufficient flexibility
strategies, and freedom and support for staff at district and to respond to the demands and opportunities emerging
block levels to experiment with alternative strategies. from the field as the program evolves.
The most attractive feature of the program developed then, the program has promoted participatory tech-
for fruit and vegetable producers by KHDP and its suc- nology development and testing. Initial serious set-
cessor organization, VFPCK, was the concept of inte- backs in group marketing also caused the program to
grating three main components of agricultural devel- reflect and learn to overcome the problems. An addi-
opment: production (including support for research tional problem was that traders perceived farmers’
and development), credit, and markets. markets to be a threat, and considerable persuasion
To implement this concept, KHDP created a new became necessary to convince them of the benefits
organizational structure and management strategy. they would receive from cooperating with the farm-
It hired the services of international and national ers’ markets.
consultants to support key areas of its operation: credit, In the beginning, KHDP envisaged providing credit
implementing an agroprocessing program, technology, to farmers through cooperative credit societies. After
and training. The expatriate experts, who were on a encountering difficulty in mobilizing funds on its own,
long-term consulting assignment, brought new knowl- the program decided to arrange for commercial banks
edge and fresh perspectives to the program as it trans- to supply the credit. Although the banks were reluctant
lated its vision into action. to provide credit to landless farmers, KHDP’s willing-
Another interesting feature of the program was ness to deposit its own funds with those banks encour-
the flexibility to change the type and nature of inter- aged them to take the risk.
ventions as and when problems arose. This flexibility The program paid explicit attention to learning along
allowed the program to evolve over the years. In its the way. It established a monthly review meeting of proj-
early years, KHDP quickly found that it needed to ect managers that provided a forum for sharing knowl-
organize farmers into groups to promote new tech- edge and experience from implementation on the
nology, help access credit, and strengthen negotiat- ground and served as the program’s learning laboratory.
ing power through collective marketing. It entered Without this forum, the program probably would never
into a contract research arrangement with the state have learned from its initial experiments, some of which
agricultural university for technical backstopping, failed. The donor (the European Commission) sup-
and when it found this arrangement was unsuccess- ported management’s changes to the initial design,
ful, it realized the importance of involving farmers which to a large extent allowed the program to achieve
directly in technology development and testing. Since its goals.
Source: Author.
strategies for implementation. The program should have by raising questions on the nature of extension’s tasks,
sufficient flexibility to shift approaches based on this recognizing the need for new expertise, facilitating a review
learning. of extension’s current interactions, and highlighting the
■ Accountability to clients is important. Clients should be importance of institutional changes. These tasks are impor-
part of the governance structure. tant for developing and sustaining a capacity for innova-
■ A well-thought-out exit strategy should be in place before tion, which should be the main focus of investing in this
funding ends. Activities in the final year of implementa- kind of approach.
tion should focus on how to sustain the investment’s pos- Before designing the program and operational strategy
itive outcomes. for investment, it would be better to undertake an institu-
tional diagnosis to understand the range of organizations
within the AIS, their expertise and activities, and their pat-
Recommendations for practitioners
terns of interaction. The scope of the specific extension
Extension can and should expand its role, given its signifi- investment and the priorities will vary in relation to the
cance for the larger AIS. The principles of extension-plus national, district, and local situations. For instance, forming
provide an opportunity for expanding the role of extension groups of farmers could be the starting point in one
MODULE 3: THEMATIC NOTE 3: EXTENSION-PLUS: NEW ROLES FOR EXTENSION AND ADVISORY SERVICES 219
Table 3.8 Activities to Ensure Successful Operation of an Extension-Plus Approach
Phase or aspect of operation Activity
Pre-project phase – Conduct individual consultations, workshops, sample surveys
– Identify key partners
– Develop a shared vision for the program
Institutional and human development – Recruit experts that can bring specific skills
– Negotiate to get the right kind of staff on deputation
– Identify and contract consultants (short and long term)
– Conduct training, exposure visits, case analysis
– Conduct an organizational and management review
Technical support – Identify best technologies and refine or adapt them to local conditions
– Direct recruitment
– Make available on time the best and most efficient inputs, either by
producing them directly or brokering arrangements with other suppliers
– Recruit qualified technical staff and train them so that they remain up to date
– If necessary, fund adaptive research
Credit and financial support – Understand the financial/credit landscape
– Negotiate with financing agencies
– Guarantee transactions, set up revolving funds
– Organize producers for group lending
– Influence policies to help mainstream credit operations
Organizational development – Form producer organizations (self-help groups, commodity interest groups,
federation of self-help groups, producer companies, and similar groups)
– Enhance skills through appropriate training programs (for example, skills in
group dynamics or office management, including financial management)
Market development – Analyze and strengthen market chain
– Negotiate with different actors in the value chain
– Create new markets if needed
– Develop new products
Source: Author.
location, whereas linking farmers to new or emerging mar- Investment should focus on potential ways for strength-
kets could be the priority in another. It would be ideal to ening and sustaining the capacity for innovation during the
source expertise and other inputs by forging links with project period and after its end. Developing a new office
other actors rather than trying to do everything through (administration/financing) manual; making arrangements
one program. If reliable sources of expertise and inputs do for monitoring, learning, and impact assessment; creating
not exist, however, the program will have to start its own opportunities for communication and engagement with
initiatives. policy; and ensuring adequate funds for addressing evolv-
Specific activities that can ensure success at different ing challenges are also critical for implementing this
stages and for different aspects of an extension-plus approach.
approach are listed in table 3.8.
221
In the agricultural sector, innovation is vital for sustain- mindset and lack the capacity to fulfill this role (Rivera and
able economic, social, and ecological development. Efforts Sulaiman V. 2009; Devaux et al. 2009). Innovation brokers
to overcome the many barriers to effective communication, can also be independent, specialized organizations with a
cooperation, and ultimately innovation are thus central to skill set especially tailored to innovation brokering. A broad
the public interest and justify public investments. range of specialized innovation brokers has emerged, for
example, in the Netherlands (Klerkx and Leeuwis 2009).
Developing countries such as Kenya (boxes 3.23 and 3.24)
WHO CAN BROKER AND HOW?
and India (box 3.25) have done the same in recent years
Any advisory service or related individual or organization (Klerkx, Hall, and Leeuwis 2009).
can broker, connecting farmers to different service Innovation brokering typically comprises the following
providers and other actors in the agricultural food chain. functions, to be applied in a flexible and iterative manner
Examples include research organizations such as those of (Klerkx and Leeuwis 2009; Kristjanson et al. 2009):
the CGIAR, national and international NGOs, specialized
consultancy firms, temporary projects, government pro- ■ Analyzing the context and articulating demand. The
grams, and farmers’ organizations (see Klerkx, Hall, and participatory assessment of problems and opportunities
Leeuwis 2009 for examples). Although public organizations through quick system diagnosis identifies promising
such as extension services and research organizations could entry points (in terms of prospective markets), support-
perform innovation brokering as part of their mandates ive policy, and constraining factors to be overcome. The
(see TN 3), many retain a linear, transfer-of-technology analysis provides information to stipulate a shared vision
Box 3.23 The Need for Innovation Brokering: Supplying Potatoes for Processing in Kenya
In Kenya, DEEPA Industries Ltd. expanded its potato constant supply of potatoes did not materialize. The
crisp production capacity from 2 to 12 tons a day, but processor had to scale down his ambition of exporting
its fully automated production line required a steady to other East African countries.
supply of high-quality potatoes. The International A structured and sustained innovation brokering
Potato Center (CIP) and the Kenya Agricultural effort could have made a big impact by building a
Research Institute (KARI) organized and facilitated a working coalition between the different stakeholders in
meeting in 2005 to see if an arrangement could be bro- the innovation process. A more harmonized and effec-
kered between the processor and potato producer tive contribution by research, extension, the private
groups in Bomet District. During the meeting, agree- sector, and producers would have been possible
ments were reached on a fixed price for farmers’ pro- through a clearly mandated broker.
duce, transport arrangements, and the regular supply Three years later, in the context of a development
of produce. The parties also agreed that the local pub- project funded by the Common Fund for Com-
lic extension office would support the producer organi- modities (CFC), CIP and KARI renewed efforts to
zation’s efforts to supply the processor. No stable source broker organizational innovation. Meetings are being
of funds for continued brokering beyond this one-off organized to build trust and structure communica-
meeting could be identified to continue supporting tion and economic interactions between the actors.
development of this emerging beneficial relationship Currently research, agricultural extension, producer
between actors. groups, and DEEPA are innovating within the pro-
The transporter of the first shipment sold the high- duction chain by using high-quality, clean seed, con-
quality potatoes destined for the processor elsewhere tract farming, direct purchasing, local collection of
for a higher price and replaced them with potatoes of the produce, and testing new genetic material for
lower quality. The processor declined to accept further quality in crisp processing. These initiatives resemble
deliveries from the producers because they did not types 1, 2, 3 in the typology of innovation brokering
meet the quality requirements, with the result that a presented in table 3.9.
Sources: D. Borus and P. Gildemacher, CIP, Nairobi.
The Innovation Works Unit of the International Live- of local pastoral Maasai communities as equal partners
stock Research Institute (ILRI) sought to facilitate in drawing up a land-use master plan, in which local
pro-poor innovation related to livestock husbandry and scientific knowledge were combined. The Maasai
through efforts with a local as well as a systemic focus. gained a voice in the policy debate from which they had
The unit created several learning platforms for public been excluded. A major achievement was that the facil-
and private stakeholders in particular projects. The itators tackled the huge power imbalances across their
platforms, which were mediated by local facilitators multipartner project team, such as the often unrecog-
hired by the different projects, can be characterized as nized power of scientific experts. To build trust and
hybrids of an innovation consultant and a systemic demonstrate respect for the knowledge of all partners
intermediary (see the typology in table 3.9). The differ- in the project, the facilitators pursued multiple strate-
ent projects funded innovation brokering through the gies, such as hiring local community members as mem-
platforms. bers of the core project research team and encouraging
The platforms often took the form of safe havens— the joint creation of knowledge by a hybrid team of sci-
environments outside each of the participating organi- entists and community members.
zations that provided a more neutral space conducive Despite these achievements, this kind of mediation
to creativity and co-creation, bypassing dominant often remains unrecognized and undervalued. It was
groups committed to maintaining the status quo. A difficult to make it a central function of an institute
concrete example involved facilitation of the inclusion such as ILRI and get it funded.
and articulate demands for technology, knowledge, fund- described here can be found elsewhere, the typology is
ing, and other resources. subject to further research and amendment (Klerkx, Hall,
■ Composing networks. Facilitate linkages among relevant and Leeuwis 2009).
actors—specifically, by scanning, scoping, filtering, and Innovation brokers have been found at the supranational
matchmaking possible partners that have complemen- (across several countries), national (country), regional
tary resources such as knowledge, technology, and fund- (province, district), and (sub)sectoral or commodity level
ing. This also includes matching demand and supply in (such as dairy or horticulture), but these levels may also mix
pluralistic advisory and research systems. (for example, when dealing with cross-cutting value chain
■ Facilitating interaction. Action planning, along with the innovations). With respect to their level of ambition, some
identification of and support to those taking leadership innovation brokers focus mostly on incremental innova-
in multistakeholder activities, has the main objective of tions at the farm level, in a demand-driven and bottom-up
building functioning stakeholder coalitions. Considering fashion. They may be reactive, responding to clients’ ideas,
the different backgrounds of the actors involved, coali- or they can more pro-actively approach prospective clients
tion building requires continuous “translation” between and offer a context analysis and demand articulation session
actors, the building of trust, establishing working proce- (Klerkx and Leeuwis 2008). Other innovation brokers typi-
dures, fostering learning, motivating, managing conflict, cally focus on radical innovations that comprise complete
and intellectual property management. (sub)sectors or value chains, dealing with complex prob-
lems that require a systemwide change process. In this case,
Different types of innovation brokers have been innovation brokers are often proactive initiators of
observed, working at different levels of the innovation processes and act as change agents. With respect to thematic
system and varying in their level of ambition and the- scope, some innovation brokers focus on one sector (dairy
matic scope. Table 3.9 presents a tentative typology based alone, for example), whereas others address all kinds of sec-
on the Dutch landscape of specialized innovation brokers tors within a region, and still others focus exclusively on a
(Klerkx and Leeuwis 2009). Although several of the types specific activity (rural tourism, for example). The optimal
MODULE 3: THEMATIC NOTE 4: THE ROLE OF INNOVATION BROKERS IN AGRICULTURAL INNOVATION SYSTEMS 223
Box 3.25 Agricultural Innovation Broker Initiatives in India
Several types of innovation brokers have emerged in initiatives use ICT and social media to identify and
India. They have taken different organizational forms, build awareness of little-known innovations. Partici-
they operate at different levels in the innovation sys- pants can share experiences and scale up successful
tem, and their scope of innovation differs. efforts. These initiatives are hybrids of an innovation
International Development Enterprises. In India consultant, a peer network broker, and a ICT-based
and Bangladesh, an international NGO, International platform that helps to articulate demands and build
Development Enterprises (IDE), acted as a broker in networks. Examples include the HoneyBee Network
the process of developing innovations for low-cost irri- and Villagro Network, which scout for innovations for
gation pumps. (In Bangladesh, aside from coordinating their databases and connect innovators to supporting
interaction among actors in the irrigation pump supply agencies such as India’s National Innovation Founda-
chain, IDE also coordinated interaction with policy tion. The networks also help participants to patent
makers.) Because of IDE’s intervention, the focus innovations and find investors to develop products.
broadened from developing a particular technology to Sustainable inventions from the Honey Bee database
realizing the vision of effective irrigation water provi- comprise 34 categories, including agricultural tools
sion for the poor. Institutional innovations were the and techniques, water conservation, health, education
key to realizing that vision and included changing the innovation, food and nutrition, traditional medicine,
incentives for public and private actors and creating and industrial and household goods. (Example of spe-
effective demand for the technology so that a self- cific innovations include a motorcycle-driven plow
sustaining market could emerge. IDE acted as a local for farmers who cannot afford tractors or bullocks
innovation consultant as well as an instrument for sys- and matchsticks made of natural fibers sourced from
temic innovation. agricultural waste.) Still other efforts use ICT-based
Using ICT and social media to build awareness of brokering instruments (“infomediaries”) to share
innovations and other information. To truly benefit operational (market and production) information
from farmers’ creativity and experimentation, several (rather than strategic information) for innovation.
Sources: Authors; Gupta et al. 2003; Hall, Clark, and Naik 2007; Murthy 2010; see also www.ideorg.org, www.honeybee.org,
and www.villagro.org.
innovation system level, ambition level, and thematic scope result of unwillingness to interact but of a lack of capaci-
of the work can be determined only in the course of the ties, structures, and incentives to interact effectively.
interaction between innovation brokers and their clients. Through investments in innovation brokering, communi-
This uncertainty implies that sometimes clients will need to cation between the multiple actors can improve greatly. By
be referred to another type of innovation broker than the providing fresh insights and a mirror for self-reflection,
one they originally started to work with. In other instances, innovation brokers stimulate clients to look beyond their
several complementary innovation brokers are involved current situation and constraints. For example, farmers
within a single innovation process (Klerkx, Aarts, and and other agrifood stakeholders can think about new pos-
Leeuwis 2010, Devaux et al. 2010). sibilities to improve their businesses, or producer organiza-
tions, researchers, and extension service providers can
think about innovative manners of communicating.
WHAT ARE THE POTENTIAL BENEFITS OF
Impartial, honest brokers, because of their less-biased posi-
INVOLVING AND INVESTING IN INNOVATION
tion and the overview of the system that they can provide,
BROKERS?
can forge contacts between parties that would normally not
The current imperfect interaction between the actors cooperate. They can also mediate more easily in the case of
essential for agricultural innovation—farmers and their conflict (see the first point in the section, “What Key Issues
organizations, researchers, extension, agricultural service Should Be Considered?,” later in this TN). Hence they can
providers, local government, agribusiness—is often not a assist in promoting more perfect information.
2. Innovation consultants aimed at Similar to type 1. The main difference is that they work with collectives, first connecting farmers or
collectives of farmers and agrifood agrifood SMEs with similar interests and then connecting these actors with relevant collaborators,
SMEs service providers, and sources of funding and policy information. Generally incremental
innovation; short time horizons.
3. Peer network brokers Aim to bring farmers together to exchange knowledge and experience at the interpersonal and
group level—in other words, to facilitate enterprise development through peer-to-peer
learning resembling concepts such as Farmer Field Schools. An explicit objective is to involve
actors from weak networks (surpassing regional and sectoral networks) by inviting entrepreneurs
from other regions or sectors and subject matter specialists.
4. Systemic intermediaries for the Catalyze radical systemwide innovation (such as an entire production chain, societal systems, or
support of innovation at higher policy systems) by: (1) managing interfaces between (sub)systems in the innovation system;
system level (2) building and organizing (innovation) systems; (3) stimulating strategy and vision development;
(4) providing an infrastructure for strategic intelligence; and (5) providing a platform for learning
and experimenting. Involve several societal actors, including farmers, supply and processing
industry, civic advocacy organization, and policy makers, for example. Generally radical/system
innovation and transition trajectories; medium to long time horizons.
5. Internet-based portals, platforms, Portals and platforms differ with regard to their prospective audiences, which may be selective (such
and databases that disclose relevant as farmers), all agrichain actors, or project-related audiences. Portals and platforms may have a
knowledge and information rather passive matchmaking role. Some portals create order in a wealth of information sources
and give an overview but do not serve as a selection aid. Interactive tools exist, however, to allow
the provision of services adapted to users’ needs. Addressing both operational or tactical
problems and strategic innovation issues; short time horizons.
6. Research councils with innovation Management of multiactor R&D planning networks (involving farmers, supply and processing
agency industry, civic advocacy organization, policy makers)—e.g., facilitating a demand-driven research
agenda and priority setting. Facilitation of participatory/collaborative R&D (involving end-user
participation), also addressing the creation of an enabling environment for enhancing research
result uptake. Incremental and radical innovations; short to medium time horizons.
7. Education brokers Aimed at curricular innovation. Provide educational establishments with the latest insights from practice
and research to enhance the fit of their education programs with business and societal needs.
Broadly, innovation brokering can be expected to have formed between stakeholders, the result should be more
immediate and long-term results. Direct results are market-oriented research and advisory services, more effec-
expected through market innovations that arise when pro- tive agricultural value chains, and a more conducive policy
ducers respond better to the needs of agribusiness and environment—in other words, a better-functioning innova-
agribusiness operators develop a better understanding of tion system (Klerkx and Leeuwis 2008; Klerkx, Aarts, and
production systems, as in the case of potatoes for the snack Leeuwis 2010; see also box 3.24).
food industries in Kenya and Peru (box 3.23 and the
description of Papa Andina in module 1, TN2). Brokering
WHAT ARE THE MAIN INVESTMENTS
can facilitate technical innovation by improving how agri-
NEEDED FOR INNOVATION BROKERING?
cultural research service providers target serious bottlenecks
in production or processing or by inducing required insti- The main investments to mainstream the use of innovation
tutional change on the part of policy makers and legislators. brokers to support agricultural development are:
Over the longer term, and beyond the immediate results of
a single innovation brokering effort, brokering should ■ Improving the recognition and evidence that innova-
improve how the overall innovation system functions. Once tion brokering is useful. Funding the innovation broker
contacts have been made and working coalitions have role is problematic. Even when organizations involved
MODULE 3: THEMATIC NOTE 4: THE ROLE OF INNOVATION BROKERS IN AGRICULTURAL INNOVATION SYSTEMS 225
in agricultural development see this role as central to interventions should be local and context-specific and
their core missions, they lack the opportunity and free- aim to build durable and, ideally, self-sustaining systems
dom to execute the innovation broker role within their of continuous capacity improvement.
mandate (Kristjanson et al. 2009). To widen awareness of
brokers’ potential role in innovation and show that an
WHAT KEY ISSUES SHOULD BE CONSIDERED
investment in their role is justified, more structured doc-
IN POLICIES TO ESTABLISH INNOVATION
umentation of successes and failures (specifically in
BROKERS?
developing countries) is required, followed by the publi-
cation and promotion of the outcomes. A number of criteria determine whether an organization
■ Improving the understanding of how to implement can play a role in brokering between actors in an AIS
innovation brokering effectively as a tool for develop- (Klerkx, Hall, and Leeuwis 2009). The most important are:
ment. Implementers should take care to not simply
copy innovation brokering models from one context to ■ A legitimate mandate and credibility in the eyes of sys-
the other, as best-fit solutions should be sought tem stakeholders. A key factor for the legitimacy of
(Berdegué and Escobar 2002). Different approaches are innovation brokers is that they must have a trusted
needed depending on asset positions, favorable or position as a relatively neutral “honest broker.” They
unfavorable production environments, gender issues, should have a reputation that instills a degree of inde-
and power distribution (Kristjanson et al. 2009). To pendence from the major stakeholders in the process
increase the understanding of effective approaches of and the overall innovation system. This stance is not
innovation brokering, action-learning cases need to be easy to maintain, because stakeholders may exert pres-
initiated and documented in different countries and sure to compose and facilitate networks in a way that
agricultural systems. fits their particular objectives. An apparent connection
■ Improving human capacity to play the role of innova- to an organization may negatively influence credibility
tion broker. First and foremost, innovation brokering as a neutral, honest broker, which seems to indicate that
requires skills related to process facilitation: leadership, innovation brokers might work best as independent,
multistakeholder facilitation, trust building, and com- specialized organizations. Innovation often challenges
munication; it also requires tools for managing group prevailing role divisions, power relations, and profit
processes (Anandajayasekeram, Puskur, and Zerfu distribution. To build productive innovation networks,
2010). A system overview is required to permit stake- sometimes parties with vested interests need to be
holders to understand and “translate” between each bypassed.
other. This skill set cannot be obtained through formal ■ Both technical and methodological know-how and a
education alone but must be developed through a com- clear role division. Innovation brokers should have suf-
bination of formal education and practical experience. ficient technical knowledge but should not become so
Investments are required to develop capable facilitators involved with projects that they take over detailed man-
of innovation within organizations motivated to sup- agement and take away ownership from the innovation
port agricultural innovation through brokering. A criti- network partners. They should also give equal attention
cal mass of experts and organizations in this field is still to the goals and interests of each of the partners.
lacking, as reflected by the experience with NAADS in ■ Funding sustainability. A durable source of funding is
Uganda (Kibwika, Wals, and Nassuna-Musoke 2009) an important requirement for effective innovation bro-
and the reorganization of agricultural service provision kering. Often funding is on an ad hoc, project basis, and
in Mozambique (Gêmo 2006). Traditional research and especially in times of fiscal austerity innovation broker-
extension organizations must “retool” if they are to ing services are often discontinued, despite high client
develop their innovation brokering capacity and satisfaction (Klerkx and Leeuwis 2008). Because the
abandon a mere transfer-of-technology paradigm impact of innovation brokers is difficult to make visible,
(Devaux et al. 2009). The implication is that they must durable public, donor, or private stakeholder funding is
develop a service delivery philosophy and a mindset that hard to obtain (box 3.24). Ways need to be found to
recognizes multidisciplinarity (including topics such assess the impact of innovation brokers and better justify
as agricultural economics, sociology, and gender public or donor spending, starting with detailed docu-
issues), as well as facilitation skills. Capacity-building mentation of specific cases.
MODULE 3: THEMATIC NOTE 4: THE ROLE OF INNOVATION BROKERS IN AGRICULTURAL INNOVATION SYSTEMS 227
new linkages. Brokers should not be tied to prescribed and brokering. The biggest potential for impact is, however,
input-output schemes by either their employers or funders. through the long-term outcome of improved collaboration
between actors, transforming the innovation system in
such a way that it becomes responsive and contributes to a
Monitoring and evaluation are needed for learning
durably competitive agriculture sector.
Innovation is by definition an unsure process. It involves
invention, adaptation, and changing directions as a
response to the insights that are gained. It is difficult, even RECOMMENDATIONS FOR PRACTITIONERS,
detrimental, to monitor progress through rigid and SMART POLICY MAKERS, AND PROJECT LEADERS
milestones (Klerkx and Leeuwis 2008). Methods of M&E From the lessons learned so far, several recommendations
that focus on learning lessons are more suitable. Alternative can be distilled for brokers themselves, policy makers, proj-
M&E indicators should be identified by the stakeholders ect leaders, and those who champion innovation brokering.
involved as relevant proof of progress, but (more impor-
tant) these indicators should also serve as points of refer-
ence for learning to improve the process of innovation. Recommendations for prospective innovation
brokers
MODULE 3: THEMATIC NOTE 4: THE ROLE OF INNOVATION BROKERS IN AGRICULTURAL INNOVATION SYSTEMS 229
in this regard (see Spielman, Ekboir, and Davis 2009). ■ Establish a clear division of tasks in innovation process
Stimulate policy learning and institutional memory in management, to avoid overlap and a lack of project own-
relation to the roles and effects of innovation brokers to ership. Depending on the innovation network’s internal
avoid a vicious circle in which innovation brokers capacity to manage innovation processes, the intensity
appear, only to disappear and reappear. of the broker’s involvement may vary. Generally, daily
■ Creating innovation brokering capacity within an project management is a principal task of project leaders/
existing organization, such as an extension or research implementers and/or innovation champions, while
organization, requires the proper institutional condi- issues like process monitoring and conflict mitigation are
tions to be shaped. Innovation brokering cannot be a principal task of innovation brokers. The involvement
judged on the basis of traditional performance criteria of innovation brokers implies that reflection on project
for research and extension, such as publications or num- progress, the role of different partners, the viability of the
bers of field visits. Furthermore, management and staff vision, and objectives becomes an integral part of the
need to gain an understanding of the role of innovation project.
brokering so that it is not seen as extrinsic to the organi- ■ Coordinate actions of the innovation network partners
zation’s core mission. and the innovation broker when forming the network,
■ Brokering is influenced by the nature of the AIS and to avoid confusion among the parties approached as to
institutional frameworks as well as cultures of collabo- whom they should regard as their main contact person.
ration. Many countries are characterized by “immature” ■ Recognize that the innovation broker cannot always
innovation systems that lack a functioning knowledge take a clear stand in advocating the interests of the
infrastructure (research, education, advisory services) innovation project versus external parties, although the
and by inadequate institutional frameworks (in terms of broker is regarded as part of the innovation network.
well-functioning legislation, markets, and interaction Advocacy is needed to some extent, but within certain
patterns). Policy makers should keep in mind that differ- limits. Innovation brokers that become too institutional-
ent cultures of collaboration may affect the potential ized in the project may benefit from having another
effectiveness of innovation brokers (for example, in innovation broker give a “second opinion.”
building trust, achieving a collective goal) because of the ■ Although innovation brokers are often subsidized, if a
cultural organization of interaction among actors at dif- private contribution is requested, realize that this
ferent social and economic positions and issues like investment is generally compensated by a lower failure
clientelism, social exclusion, nepotism, and corruption. rate and better access to external resources. In general,
integrate the cost of innovation brokering in the overall
project sum, and do not see it as an unnecessary invest-
Recommendations for project leaders, project
ment lowering the research budget.
implementers, and/or innovation champions
■ Accept that innovation brokers cannot perform mira-
cles. Some obstacles may be of such magnitude that they
■ Prepare to give up preconceived ideas. Stimulating crit- require prolonged action by innovation brokers (for
ical and creative “out-of-the box” thinking is a key role of example, through mediation) but nonetheless cannot be
innovation brokers. overcome.
231
yield-improving technologies and to improve the transfer linkage development, and efforts to strengthen the support
of knowledge related to the proper, safe use of agricultural systems needed for agrodealers to become successful in a
inputs. They have a major influence on farmers’ incomes. competitive marketplace. The following focal areas are a pri-
Efforts to improve food security and accelerate income ority for IFDC in the design and implementation of activi-
growth in rural areas can be significantly affected by the ties to accelerate agrodealer development.
presence and effectiveness of agrodealers.
MODULE 3: INNOVATIVE ACTIVITY PROFILE 1: AGRODEALER DEVELOPMENT IN DEVELOPING AND EMERGING MARKETS 233
BENEFITS AND IMPACT
Box 3.28 Business Linkage Development
and Leveraging Resources A holistic, market-oriented approach to agrodealer develop-
ment facilitates improved efficiency in resource allocation,
operations, and economic performance. The benefits of
Global Development Alliance. In collaboration agrodealer development accrue at various levels in the value
with the United States Agency for International chain and impact stakeholders at the micro and macro lev-
Development and the Eurasia Group (Pioneer, John
els. For instance, beginning in 2008, the Government of
Deere, DuPont, and Monsanto), IFDC helped to
Bangladesh endorsed fertilizer deep placement as a technol-
create a Global Development Alliance in Kyrgyz-
stan. The alliance has been instrumental in intro- ogy that would help to improve rice production systems
ducing technology and building human capacity substantially, thereby contributing to food security and
through cost-sharing and in linking Kyrgyzstan’s farmers’ incomes. IFDC, with support from USAID and the
agrodealers to suppliers of improved technologies. Government of Bangladesh, designed and introduced a pro-
Linking South Asian and African entrepre- gram to diffuse the technology and concurrently address
neurs. IFDC is organizing study visits and technical demand and supply issues. The role of agrodealers in
workshops to link suppliers of fertilizer briquette Bangladesh continues to evolve and is having a substantial
machines in Bangladesh and agrodealers in Kenya, impact on food security, farmers’ incomes, and the national
Nigeria, and Rwanda. The emphasis is on creating budget (box 3.30).
awareness and establishing business contacts
among agrodealers, entities that directly impact
their businesses (including banks and microfinance LESSONS LEARNED
institutions), and agricultural input distributors/
wholesalers with local, national, regional, and IFDC’s long experience in working with agrodealers in
international markets. emerging markets throughout the world can help practi-
tioners plan or support similar activities. Key lessons are
Sources: IFDC, unpublished project documents, 2009 summarized below.
and 2010.
■ Understand the challenge. The agrodealer market envi-
ronment and challenges faced by farmers differ from
Box 3.29 Agrodealer Associations Support country to country. A key lesson is that a “one-approach-
Common Interests
serves-all” philosophy does not work. Each intervention
must be tailored to the prevailing conditions in the target
The role and benefits of agrodealer associations are area. Achieving success in agrodealer development
reflected in improvements in four key areas: access requires a clear understanding of the overall agricultural
to finance, advocacy, communication, and educa- input marketing system, the stage of development, and
tion. IFDC implemented the Fertilizer Distribution the influence of macroenvironmental factors at a given
Improvement (FDI) II project in Bangladesh dur- time.
ing 1987–94 with funding from the United States ■ Engage the public agricultural extension service to the
Agency for International Development. With FDI maximum extent feasible and use its extensive networks
II project support, the Bangladesh Fertilizer Associ- to provide knowledge-building services to farmers. A
ation (BFA) was established in June 1994. A decade key lesson is that the extension service, other public offi-
and a half later, the BFA is a 7,000-member-strong cials, and private agrodealers must provide farmers with
association that provides varied services to its
a consistent, clear message on the need for and appropri-
members, including policy advocacy, knowledge
ate and safe use of agricultural inputs.
transfer, and improved market transparency.
It is important to avoid dependency on donor ■ Keep learning practical and interactive. A key lesson is
funds for association operations. Long-term survival that agrodealers learn best either through direct, one-on-
requires the association to create a revenue flow that one assistance or through group participation with
comes substantially from membership dues. hands-on interaction. Study tours in more advanced
markets often are beneficial to build business linkages
Source: USAID 1996. and to further awareness and knowledge of technologies
and the advisory role of agrodealers.
In close collaboration with the Department of Agri- ■ Stimulating supply system development: Over
cultural Extension (DAE) and private dealers in 18 months, IFDC stimulated private entrepreneurs
Bangladesh, IFDC is supporting the rapid diffusion of to invest (on a cost-sharing basis) in 157 FDP prod-
fertilizer deep placement (FDP) technology. Increasing uct briquette machines. Eighteen training programs
farmers’ demand for FDP technology and stimulating targeting entrepreneurs were conducted. The results
the supply and marketing system to improve farmers’ of concurrently addressing demand and supply
access to the technology are crucial to sustainable suc- issues related to diffusing FDP are impressive (see
cess. At the macro level, the focus is on gaining govern- table B3.30).
ment and donor endorsement of the technology. At the
micro level, the primary focus is on: Table B3.30 Impacts of Addressing Supply and
Demand Issues Concurrently in
■ Creating farmers’ awareness and demand for FDP Diffusing a New Fertilizer
technology: Over four cropping seasons, IFDC com- Technology
pleted 3,880 farmer training programs, installed Rice area under fertilizer deep
386 technology demonstration plots, completed placement (FDP) technology 94,380 ha
Number of farm families adopting FDP 408,000
109 FDP technology field days, and conducted Incremental rice production 24,000 t
67 train-the-trainer programs for DAE staff. Advertis- Farm family income increase US$8 million
ing activities included (among others) the installation Urea fertilizer savings 7,000 t
of more than 2,000 signboards and billboards, the GOB subsidy reduction US$1.6 million
development/dissemination of 135,000 technical New urea briquette machines at
brochures and the development of 72 cinema slides. dealer level 121
■ Duration and continuity are important. A key lesson is the ministry in charge of agriculture, the public exten-
that while one-time interventions in the priority areas sion service, commercial bankers, donors, and other rel-
described earlier are beneficial, they are less effective than evant development agencies to the maximum extent in
longer-term interventions that provide agrodealers with agrodealer development initiatives. Establish links with
continued support for development. Both remedial and other projects to achieve synergies when possible. To
more advanced training are important for achieving a achieve an element of ownership, dealers’ cost-sharing is
sustainable impact. Program continuity allows for timely emphasized when feasible. The feasibility often depends
interaction with policy makers and donors. upon the stage of market development. In seriously
■ Foster broad-based stakeholder involvement. Strength- underdeveloped input markets, where demand from
ening dealers’ capacity, building knowledge, fortifying farmers is weak and risks are high, cost-sharing opportu-
support systems, and establishing business linkages are nities are quite limited. Dealers lack the resources to
essential, but they are not enough to ensure productive make a significant contribution to development. In more
agriculture and sustained economic development. A key advanced markets, dealers’ cost-sharing may range from
lesson is that broad-based stakeholder involvement is providing the inputs for technology demonstrations to
essential to sustaining progress. It is important to engage covering a portion of the costs involved in field days.
MODULE 3: INNOVATIVE ACTIVITY PROFILE 1: AGRODEALER DEVELOPMENT IN DEVELOPING AND EMERGING MARKETS 235
I N N O V AT I V E A C T I V I T Y P R O F I L E 2
236
to take advantage of economies of scale, necessitating
Box 3.31 Gender Issues in FFSs
more interaction and coordination. Based on these devel-
opments and exchange visits and interactions between
farmers, facilitators, trainers, and project staff in Western FFSs have been shown to change gender relation-
Kenya in early 2000, FFS networks emerged. The networks ships, mainly because they introduce a formal
were formed mainly by FFS graduates. Aside from taking group structure but also because they operate
advantage of the opportunities just mentioned, the gradu- under agreed group norms and rules. All issues
ates wanted to continue the dynamics generated by the FFS brought to the group are accepted for discussion,
process—to build local institutions to ensure the continua- so fewer subjects are off-limits. As a result, the
tion of farmer-led FFS and gain a stronger voice in express- position of women participating in FFSs has
ing their demand. generally strengthened. In some East African com-
The inherent attributes of the FFS approach of cultivat- munities, women dominate FFSs. Men are less
ing cohesion and a willingness to learn together while solv- interested in working in groups, although in some
cases, they join at later stages of the FFS process.
ing problems that affect them as a community help to build
their social capital. Common interests at the network level Source: Authors.
are mainly marketing, advocacy, sharing information and
experience, access to finance, and representation. There is
therefore no conflict of interest when different FFSs come
together to form the network. As a precursor to transforma- To assist members in access to affordable inputs of reli-
tion, the level of empowerment and organization developed able quality, such as seed and fertilizer, the networks have
in an FFS is critical and can have a significant impact on the arranged bulk purchases of inputs for resale among mem-
marginal returns of a subsistence-based farming system. bers in smaller quantities, thus improving access and reduc-
This strong cohesion within and among FFS groups is one ing costs. Many networks also operate small input kiosks at
of the main factors contributing to the emergence of higher- their offices.
level federations1 like the FFS networks. By joining together, FFSs also gained access to technical
and advisory services not normally available to individual
FFSs or farmers. Government and other extension agents
BENEFITS TO FARMERS, IMPACT,
have been very responsive to requests for assistance by the
AND EXPERIENCE
networks, because they can reach more people.
FFS network members state a range of benefits experi- Networking acts as a safety net and sustains the FFS
enced by the networks. Important benefits appear to be process long after a given project ends. By jointly applying
increased voice and power and access to services and mar- for/guaranteeing loans for individual members or groups
kets. Some of these benefits are especially important for and helping each other in the development of proposals, the
women (box 3.31). federations have found it easier to obtain formal credit. Fur-
Despite the market barriers experienced by smallhold- ther, a savings fund is in place in most networks from which
ers, the networks have been able to arrange collective mar- individual FFSs can borrow money through informal credit
keting with its many advantages. The networks have arrangements.
assisted in identifying markets and collecting marketing Finally, farmers appreciate the sharing of information
information. A network-based monitoring and record and experience that networks facilitate. Through connec-
system helps group members track the availability and tions with other networks, member farmers exchange
quantity of their produce, making it possible to plan bulk technical knowledge and new farming ideas in addition to
sales and negotiate with buyers in advance of harvests. By benefitting from the social network in terms of mentoring,
selling in larger quantities, FFSs reduce transaction costs, encouragement, and a feeling of togetherness. Farmers
gain bargaining power, and thus command better prices attribute their involvement in network activities to the
for their products. They have also been able to break or social bonding and trust building taking place within the
weaken manipulative relationships with market inter- FFS. After networking and strengthening their capacity for
mediaries and thereby gain access to more lucrative mar- collective action, member of FFSs have in many instances
kets for their produce. Obtaining funds from government gained access to governance and policy processes, and they
programs also appears to be easier for federated FFSs have also been invited by the government and other service
(box 3.32). organizations to represent farmers in official functions.
MODULE 3: INNOVATIVE ACTIVITY PROFILE 2: FEDERATING FARMER FIELD SCHOOLS IN NETWORKS 237
Box 3.32 A Kenyan Federation of Field Schools Benefits from Government Programs
As a result of becoming federated, the Kakamega FFS ducing financial diversification and the role of credit in
Network has obtained funds from government pro- agriculture, and teaching an agricultural planning
grams such as Njaa Marufuku (“ban hunger in Kenya”) process called “plant-to-meet-market.” The network
and the Kenya Agricultural Productivity Project also received 2.8 million Kenya shillings (K Sh)
(KAAP), a World Bank-funded program. For example, (US$40,000) from KAPP for coordinating marketing
the network obtained US$10,000 from the Livelihoods activities and agricultural commodity marketing. The
Diversification and Enterprise Development Fund for funds were used mainly to purchase computer hard-
building marketing capacity of network leadership, ware and software, provide training in agribusiness and
developing and introducing a farming-as-a-business value chain management, and support service
curriculum, establishing a marketing office that uses a providers. Finally, through the network three FFS
blend of appropriate technology, developing links to Groups obtained K Sh 120,000 (US$1,715) each for
established agricultural commodity exchanges, intro- vegetable production and marketing.
Source: Authors.
MODULE 3: INNOVATIVE ACTIVITY PROFILE 2: FEDERATING FARMER FIELD SCHOOLS IN NETWORKS 239
I N N O V AT I V E A C T I V I T Y P R O F I L E 3
he INCAGRO project seeks to establish a national The Innovation and Competitiveness Program for Peru-
240
CONTEXT agribusiness leaders rate the proposals and determine
which projects will be funded. The panels may also recom-
Peru’s public extension services grew considerably from
mend changes in the content or size of the proposed projects.
the mid-1950s to the mid-1980s, but in the years that fol-
The INCAGRO team receives guidance from the evaluation
lowed, a range of factors led to their decline. The number
panels for adjusting proposals with the farmer organizations.
and range of services supplied by Peru’s public extension
The exercise of developing a business plan, submitting pro-
system became financially unsustainable owing to gov-
posals for competitive review, negotiating with INCAGRO
ernment financial limitations, privatization trends, and
“innovation brokers,” and the follow-up monitoring and
the inhibiting presence of the Shining Path guerilla group
evaluation data demonstrates, particularly to farmers, that a
(Ortiz 2006). The system was considered too top-down,
positive return can be made on the investment in agricul-
too supply-driven in its focus on technology transfer, and
tural innovation services.
too centralized. Although large-scale commercial produc-
Proposals range from using innovation services to
ers could still obtain extension services, small and medium
improve agricultural production and productivity to using
producers came to rely on sporadic support from NGOs.
them to improve agricultural products and agroindustry.
A common concern with the extension services supplied
To date, extension service projects covering 40 annual crops,
by NGOs was that those organizations were not well inte-
26 perennial crops, 10 kinds of farm animals, 11 kinds of
grated with the AIS and its knowledge and information
fish, and 18 agroprocessing efforts have been funded. Crops
subsystem.
include basic food crops as well as export crops, some raised
Because the provision of agricultural innovation services
organically.
to Peru’s small and medium-sized farmers was particularly
An important aspect of the FTA model is that farmers
weak, in 1999 the government signed a letter of intent with
own the project. They contract extension providers to com-
the World Bank to promote agricultural innovation through
plete a specified number of activities. Farmer groups are
the Bank’s Adaptable Loan Program in three phases: the
required to make a financial contribution in cash, plus
establishment of the innovation system; scaling up the sys-
any in-kind contributions. The cash contribution ranges
tem; and a final consolidation phase (presently under dis-
between 15 and 30 percent of the total costs for extension
cussion). A key feature of the resulting INCAGRO project is
projects. Farmers must form legal entities to sign contracts
the use of competitive funding schemes to promote a mar-
and receive government support. To meet these require-
ket for agricultural innovation services.
ments, participants must be willing to collaborate, handle
considerable legal paperwork, and have the capacity to man-
DEVELOPING A MARKET FOR AGRICULTURAL age and implement their projects.
INNOVATION SERVICES The FTA fund makes it possible for farmer groups to
gain organizational and project development skills by con-
INCAGRO’s main objective is to establish a national agri-
tracting an “ally” (aliado), a private individual or a public or
cultural science and technology system that is modern,
private agency, to assist in formulating the project proposal,
decentralized, pluralistic, demand-driven, and led by the
private sector. The project’s three components are designed developing the corresponding business plan, identifying
to achieve this objective by: (1) strengthening the market for the right extension supplier, and managing project imple-
agricultural innovation services; (2) increasing strategic mentation on behalf of the farmer group (box 3.34 pro-
competencies in agricultural research for development; and vides an example from the project). An ally is a new but
(3) promoting the institutionalization of policies, informa- critical innovation in the development of a functioning
tion, and the quality of innovation services. market for extension services. (For more on this concept,
see the discussion of innovation brokers in TN 4.)
Competitive funds have expanded the market for exten-
Agricultural technology fund: Competitive grants to
sion service providers through various means. Producer
improve the demand and supply side of the market
organizations have hired their own extensionists, contracted
for agricultural innovation services
individual private extension providers, signed agreements
The Agricultural Technology Fund (Fondo de Tecnología with NGOs, and partnered with cooperatives for the provi-
Agraria, FTA) has financed projects developed by farmer sion of extension services. The FTA guidelines for project
organizations for support in agricultural extension. Proj- proposals support a more holistic approach to agricultural
ect proposals are based on business plans and use stan- innovation by including collaborating entities in the project
dardized logframes. Independent, three-member panels of proposal, such as private input and marketing firms in the
MODULE 3: INNOVATIVE ACTIVITY PROFILE 3: INCAGRO: DEVELOPING A MARKET FOR AGRICULTURAL INNOVATION SERVICES 241
business plan and use the ally to assist them in implement-
Box 3.34 An Ally Broadens Farmers’ Skills to
Articulate and Meet Their Demand ing the adaptive research project. The research entity can be
for Innovation Services a public or private institution or an individual with specific
competencies required for the project. In this case, the
farmer organization must meet 5 percent of project costs.
Through the Agricultural Technology Fund, three
cacao cooperatives in Huánuco Region partnered
with an ally to acquire technical assistance and Strategic Services Development Fund:
training in a project to increase the productivity Improving the supply side of the market
of cacao, obtain certification for organic cacao for agricultural innovation services
production, and increase the marketing of their
organic cacao. CAFÉ PERÚ (Central de Organ- The Strategic Services Development Fund (FDSE, Fondo
izaciones Productoras de Café y Cacao del Perú) para el Desarrollo de Servicios Estratégicos) uses competi-
served as the ally and implementing agency for the tive matching grants to promote basic and applied strategic
project. The cooperatives received market analysis research, focusing on genetic resources, biotechnologies,
and specific training in cooperative management plant and animal protection, natural resource management,
and product promotion. Starting from zero in postharvest technologies, and conservation agriculture. It is
the project’s first year, more than 1,200 producers a demand-driven system (box 3.35 provides examples).
had obtained organic certification by the end of These strategic research areas were defined through national
year three. Over the same period, cacao productiv- as well as decentralized workshops, with actors in the value
ity rose from 340 to 600 kilograms per hectare, and chain for all of Peru’s major agricultural products, and on
the cooperative markets some 1,500 tons of
the basis of in-depth studies.
organic cacao. Although cacao prices have risen
Projects must involve strategic alliances of at least two
overall, the productivity increases and the switch
to organic production enabled producers’ returns major stakeholders in the research. A specific entity must
to rise from US$ 546 to US$ 1,543 per hectare. make the proposal and lead the research; collaborating
The total project cost was US$ 158,716 over the research organizations are encouraged and increase the
three years. INCAGRO staff, along with CAFÉ competitiveness of a proposal. Funding is capped at
PERÚ, played an important role in brokering the US$125,000 per project. Grant recipients must match this
arrangement between national and local partners. funding by 50 percent or more through actual or in-kind
resources. National, independent, three-member panels
Source: Author, INCAGRO (http://www.incagro.gob.pe).
comprised of researchers evaluate proposals for funding.
A second purpose of the FDSE—to improve the supply
of agricultural extension services—has proven useful for
value chain as well as public agencies. Together, these col- developing service providers. Competitive grants are
laborators form a strategic alliance that is formalized in an awarded to train extension providers to establish exten-
Agreement of Participation. The agreement establishes the sion services; use specific extension methods; learn
roles and responsibilities of each member of the alliance, particular crop and livestock practices, laboratory proce-
their respective contributions to the project, and the final dures, and postharvest storage practices; write and ana-
disposition of any items obtained as a result of the project. lyze business plans; and conduct market analysis. One
The idea is that a strong strategic alliance will raise the prob- example of how these funds are used is the training given
ability of success. by the Lambayeque Institute for Agricultural Develop-
In addition to developing extension-based projects, ment to extension providers in how to price and market
farmer organizations can develop adaptive research projects their services. Another example is the value chains and
to verify the technical and economic suitability of research improvements in value chain training on small livestock
findings in the local setting. The research is participatory, in Arequipa by the Institute for Development of the Infor-
requiring the producer-clients to become involved in iden- mal Sector–Arequipa (IDESI, Instituto de Desarrollo del
tifying problems or opportunities in their fields and Sector Informal). Extension training providers have
contribute actively during all stages of the research. Produc- included cooperatives with their own staff, universities,
ers can use the strategic alliance framework to include other national and regional research institutes, and national
actors in the value chain as part of the adaptive research and regional NGOs. While this training has been useful
Competitive grants awarded by the Agricultural Tech- standardizing production, making production of
nology Funda and Strategic Services Development organic Sacha Inchi more competitive, and improving
Fundb for nine interrelated projects provided exten- producers’ agribusiness skills. These projects reached
sion services for producers, adaptive research, and 450 producers directly. Adaptive research projects
strategic research for the development of Sacha Inchi, a included testing and validating two technology pack-
native Amazon oilseed plant with high levels of omega ages, one for organic production methods and the
fatty acids. The projects involved actors all along the other for production and processing methods; these
value chain, including the Ministry of Agriculture and projects had 220 direct and 670 indirect beneficiaries.
Institute of Peruvian Amazon Research, rootstock The four in-depth strategic research projects focused
providers, regional producers’ associations, extension on integrated pest management methods, the identi-
providers, and processing and marketing associations. fication and improvement of genetic lines of Sacha
Extension services were offered to community-based or Inchi, the generation of elite lines, and asexual propa-
regional producer organizations on improving and gation methods.
for improving the quality of the extension services mar- competitive funding cycles and have greater success in win-
ket, it represented just 10 percent of the projects. Accord- ning rounds. Stratifying the funds and providing direct
ing to the World Bank (2009), this low percentage reflects assistance to targeted low-income groups were key features
the small number of providers, the weakness of current of INCAGRO’s second phase.
and potential training institutions, and a lack of commu-
nication between the potential providers and suppliers. RESULTS AND INNOVATIONS
MODULE 3: INNOVATIVE ACTIVITY PROFILE 3: INCAGRO: DEVELOPING A MARKET FOR AGRICULTURAL INNOVATION SERVICES 243
GRO offices are located at stations of the national agricul- percent, 77 percent of participants were willing to partially
tural research service, unless they are quite distant from a pay for extension services, the number of extension and
city center. research providers grew by 23 percent, and the diversity
The impact of the individual projects funded by the and quality of services increased by 25 percent. The same
grants has been significant, but challenges remain in ensur- study calculated an internal rate of return between 23 and
ing a sustainable market for agricultural innovation ser- 34 percent, higher than typical returns for agricultural
vices. There is no evidence yet that effective, sustained development projects. The benefit-cost ratio was esti-
demand for technical assistance services exists or that the mated at two to one, and net present value at US$15 mil-
capacity to pay for these services (through increased lion (2009). Using a different sample, the World Bank
incomes) will suffice to maintain them. In fact, one institu- study concluded that the economic rate of return for the
tional challenge to the continued market for agricultural FTA projects was 39 percent. The Bank’s study also reports
extension is the plethora of providers from NGOs and other that Barrantes et al. (2004) calculated an average eco-
government projects (some also funded by the World Bank) nomic rate of return of 76 percent for a selected number
which provide technical assistance gratis or without com- of extension projects.
petitive funding. Indicators of sustainability are discussed in Based on these analyses, INCAGRO appears to have been
the benefits section below. a sound investment and successful project. Equity remains a
concern, however: The greatest beneficiaries were medium-
BENEFITS, IMPACT, AND EXPERIENCE TO DATE to large-scale producers rather than the most disadvantaged
producers, including women. Strategies were adopted in the
Two recent evaluations assessed the impact of INCAGRO second phase to target more vulnerable groups with sepa-
(World Bank 2009; Ministry of Agriculture 2009). These rate funding, more support, and training. The results of this
and the INCAGRO database provide information on the effort are not clear, but it has led to a perception that costs
project’s near-term benefits and outcomes, but they are not per client have become higher. Finally, while it is possible to
conclusive on the potential long-term impact or sustain- conclude with confidence that the competitive grant proj-
ability of the model. Over eight years of INCAGRO’s imple- ects represented strong investments, INCAGRO itself must
mentation, thousands of farmers demanded and received be judged against its broader goal of generating a sustain-
extension support (table 3.10). Over half of the funds used able model for an agricultural innovation market for exten-
in the competitive grant projects came from financing pro- sion services.
vided by farmers and service providers, though much was in
the form of in-kind contributions.
The two evaluation studies, using nonrandomized sam- LESSONS LEARNED AND ISSUES
ples due to data limitations, reached positive findings on FOR WIDER APPLICATION
the project’s impact. The Ministry of Agriculture study
Peru now has many new competitive funding schemes sup-
estimated that 56 percent of producers were likely to adopt
porting agriculture, including at least two other schemes
the technology innovations, productivity increased by 86
managed by the Ministry of Agriculture and others by sci-
ence and technology and innovation units. In interviews,
Table 3.10 Measures of INCAGRO Project Output these funders credit INCAGRO for much of the success
Projects supported of competitive funding schemes, including their role in
through grants Outreach and funding developing competitive funding strategies; in building
Funding cycles: 36 72,000 farmers reached the capacity of producer organizations to follow rigorous
FTA extension projects: 580,000 indirectly affected
34% to indigenous groups* 16% indigenous population*
funding protocols and implement projects; preparing a
12% to women’s groups* 5.5% women farmers reached cadre of professionals that now manage other funds; devel-
1,211 proposals directly* oping a pool of competent service providers; and creating
330 approved US$43.7 million expended
competitive funding mechanisms and tools that were
FDSE extension training: 53% from cofinancing
349 proposals 67% used strategic alliances directly adopted by the new funding agencies. These are
51 approved actually some of the strongest signs of INCAGRO’s sustain-
ability, if not as a program then as a concept. The long-term
Sources: INCAGRO (http://www.incagro.gob.pe); Benites and
Wiener 2008. sustainability of individual extension service providers is
* Some of these beneficiaries may be indigenous women. not guaranteed through competitive funding schemes, but
MODULE 3: INNOVATIVE ACTIVITY PROFILE 3: INCAGRO: DEVELOPING A MARKET FOR AGRICULTURAL INNOVATION SERVICES 245
I N N O V AT I V E A C T I V I T Y P R O F I L E 4
246
deliver advisory services on required topics and prac- (See TN 2, which discusses the need for financial services, and
tices. IAP 2, which explains how to build strong federations of
■ Self Help Group Quality Improvement Program farmer groups to obtain better services.) In 2002, BASIX
(SHGQIP). A microfinance agent model for promoting developed a “livelihood triad” strategy to provide comprehen-
self-help groups was tested under this program. sive livelihood promotion services to poor rural households.
■ Rural Infrastructure Revival (RIR). Local community Box 3.36 describes how services evolved for one particular
resources were activated to rehabilitate lift irrigation, the subset of clients.
electricity supply, milk chilling plants, and other infra-
structure.
INNOVATIVE ELEMENT
These programs delivered services on a full grant basis As mentioned, the livelihood triad strategy includes the
or 50:50 or 75:25 cost sharing by customers and BASIX, provision of financial inclusion services; agricultural, live-
depending on need and customers’ willingness to pay. stock and enterprise development services; and institu-
Under the triad strategy described in the next section, these tional development services detailed in table 3.11. Under
services evolved into the services listed in table 3.11. Agricultural, Livestock, and Enterprise Development
(AGLED) services, BASIX currently provides services to
farmers growing several crops (cotton, groundnuts, soy-
RATIONALE FOR BASIX’S TRIAD STRATEGY
beans, pulses, paddy rice, chilies, vegetables, mushrooms)
In 2001, BASIX asked the Indian Market Research Bureau, an (box 3.37) and lac (a form of organic resin) and producing
independent external agency, to assess the impact of BASIX milk and livestock (poultry, sheep, and goats).
among recipients of its services. Only 52 percent of customers Nonfarm business development services are also provided
who had received at least three rounds of microcredit had sig- for selected activities such as tailoring, woodworking, bam-
nificantly improved their incomes, compared with a control boo work, retail stores, and niche handicrafts and hand-
group who received no credit. Income levels did not change looms. An example of the need for institutional development
among 25 percent of customers; 23 percent reported a decline. services beyond financial assistance is given in box 3.38.
BASIX carried out a detailed study of those who had expe-
rienced no increase or a decline in income and concluded that
ACHIEVEMENTS
this outcome arose from unmanaged risk, low productivity,
and limited access to markets, combined with poor terms for Today BASIX works in more than 40,000 villages through a
buying inputs and selling output. The analysis clearly identi- network of over 250 branches, each with five field execu-
fied several needs: to improve farmers’ productivity, offer ser- tives under a team leader. Each field executive supervises five
vices to mitigate risk, improve producers’ links to markets, livelihood service advisers (LSAs). Each LSA covers about
and organize producers to gain a stronger bargaining position. 10 villages, originating credit, selling insurance, collecting
MODULE 3: INNOVATIVE ACTIVITY PROFILE 4: COMBINING EXTENSION SERVICES WITH AGRICULTURAL CREDIT: BASIX INDIA 247
Box 3.36 BASIX Services for Groundnut Farmers in Andhra Pradesh: From Financial Services
to Livelihood Triad Services
In 2001–03, BASIX was working in Anantapur District, These interventions offered little for rainfall-depend-
which had 700,000 groundnut farmers, with support ent farmers affected by drought, however. Dairy produc-
from ICICI Bank. Based on recommendations from tion was promoted as an alternative livelihood strategy
research institutes,a the program introduced drought- in 2003. BASIX identified villages to form milk collec-
tolerant cultivars and agronomic practices to reduce the tion routes, educated farmers in dairy farming, helped
effects of drought, but three years of severe drought villagers grow fodder where some irrigation sources
dashed efforts to raise groundnut yields. BASIX had were available, and negotiated linkages with nearby
greater success with improving groundnut marketing. bulk chilling centers established by the Andhra Pradesh
BASIX formed a farmer cooperative and facilitated it Dairy Development Cooperative Federation. The market
to lease a local factory to shell groundnuts—an activity linkages facilitated with the federation led to the revival
formerly done by intermediaries. This value-adding step of chilling centers in Kalyandurg and Kannekal. Chill-
enabled farmers to sell their produce at a higher price. ing center capacity increased from 2,000 liters to 10,000
Women’s self-help groups bought groundnuts produced liters. Outreach to women, for whom dairy became a
under irrigation in the rabi (winter) crop cycle and primary livelihood activity, increased. Migration from
processed them for sale. Large hand-processed nuts the area declined. Many such efforts have led to the
were sold as seed for the upcoming kharif (summer BASIX “livelihood triad” of services (financial inclusion
monsoon) crop cycle, and smaller ones were sold for services; agricultural, livestock, and enterprise develop-
bird feed. ment services; and institutional development services).
BASIX seeks to enhance clients’ awareness of good ■ An assessment of mushroom beds for progress
practices related to their investments. One example is of mycelium growth. Training is provided to con-
the fee-based Mushroom Development Services Pack- duct regular inspections of beds to ensure regular
age, which BASIX offers to customers who have suffi- growth of mycelium, avoid losses, and enhance
cient space to raise mushrooms as an additional source production.
of livelihood. The package includes: ■ Training in measures to mitigate the effects (and
risks) of high temperatures and low humidity.
■ A review of the primary requirements for mush- ■ Training in producing two value-added products. It
room cultivation. A suitable location and the use of can sometimes be difficult to sell raw mushrooms.
specific materials are key factors for good mush- Value-added products such as mushroom pickles
room production. and soup always fetch higher prices and increase
■ Mushroom bed installation (including straw-cut- profits for producers.
ting techniques, soaking straw in water, preparing ■ Input market linkages for spawn and polythene.
the bed using spawn and feeding material), aftercare BASIX helps customers identify sources of good
for optimum production, identification of poison- spawn and facilitates the procurement of polythene
ous mushrooms, and precautions to be taken. and spawn.
MODULE 3: INNOVATIVE ACTIVITY PROFILE 4: COMBINING EXTENSION SERVICES WITH AGRICULTURAL CREDIT: BASIX INDIA 249
■ In designing services, focus on reducing costs. Produc- service delivery through mobile phones so farmers can
tivity can be increased by raising yields as well as by report LSPs for poor service or missed visits.
reducing the costs of producing the same amount of out- ■ Sustainability and extension of services to larger farmers.
put. Local agricultural universities and research stations The income from AGLED services in 2010 was nearly
had developed many practices for increasing yields, so Rs 148 million (US$3 million). BASIX made a modest profit
BASIX decided to focus on reducing costs. One example (nearly Rs 22 million or US$450,000) by providing these
of this approach was to apply pesticide on cotton stems services to over half a million customers. With more LSPs
to reduce pest multiplication and reduce pesticide appli- reaching the breakeven number of customers, profitability
cations later in the season. Another example was the is likely to improve. BASIX also plans to move some basic
introduction of soil testing to enable more precise, eco- facilities like soil-testing labs and artificial insemination cen-
nomical fertilizer use. For dairy animals, simple practices ters under its own control to improve its service to farmers.
like vaccination and periodic deworming were more
cost-effective than procuring high-yielding crossbred Although BASIX agricultural credit operations are aimed
animals. at small-scale and marginal farmers, the organization plans
■ Customized services enhance willingness to pay. BASIX to extend AGLED services to larger farmers to whom it does
staff learned how to customize AGLED services to differ- not extend credit in the same villages. In improving their
ent agroclimatic zones, which enhanced farmers’ willing- yields, these farmers will generate additional production as
ness to pay for services. Customer satisfaction surveys well as employment opportunities for the landless poor,
conducted by independent audit teams found that the outcomes aligned with the BASIX mission. So far BASIX has
satisfaction level was nearly 80 percent; the main cause of worked mainly in poorer dryland districts. It is considering
dissatisfaction was inadequate visits from LSPs. To providing AGLED services in irrigated districts and for
improve service, field executives introduced tighter mon- large-scale farmers where it has no credit operations
itoring of service delivery through passbooks, acknowl- through its new BASIX Krishi company. With these changes,
edgement receipts, and service cards, but this practice BASIX is confident of reaching two to three million farmers
was expensive. BASIX is piloting a strategy to monitor with AGLED services by 2015.
Agricultural
CoordinationResearch withinAction
and Collective an for
Agricultural Innovation System
OV E RV I E W
261
with demand, more effective, better-differentiated institu- research units distributed throughout ministries of agricul-
tional partnerships, and better market integration. ture and other ministries were brought under a single, inde-
An innovation systems framework adds a set of new pendent administrative structure. The assumptions ruling
dimensions to the investment in agricultural science and this restructuring were that economies of scale and scope
technology. An AIS framework focuses attention on: (1) an could be achieved in agricultural research, budgetary
expanded range of technologies (particularly postharvest resources allocated much more efficiently, and personnel
and mechanical) provided by a differentiated set of suppli- policies freed from public civil service bureaucracy. Large
ers; (2) demand responsiveness, particularly better connec- countries such as Brazil and India developed a complex fed-
tivity and interaction of agricultural research with actors eral and state system of national research institutes, state
beyond farmers; and (3) adaptation to and facilitation of agricultural universities, and state research institutes. Donor
organizational innovations in credit, markets, insurance, investment in agriculture was at an historical high, at least
farmer groups, and extension services. in percentage terms. The CGIAR network of international
The reframing of technological innovation coincides with agricultural research centers expanded, and donors led by
the emphasis on market-led approaches for smallholder the World Bank and USAID funded programs that focused
development, which have emerged in the wake of structural on training, infrastructure development, and program for-
adjustment and market liberalization in the 1990s. Orienting mulation within the newly formed NARIs.
research to markets, often through work in specific value
chains, has become a principal vehicle for delivering new
technologies and for combining them with the organiza- From national research institutes
tional and institutional innovations that so often accompany to research systems
technical change in the agricultural sector. The dominance of the NARI gave way quite quickly in the
In this sense, an AIS approach represents a relatively evo- late 1990s to reform based on the development of more
lutionary form of institutional change in agricultural pluralistic, decentralized systems, in which research fund-
research, with a particular focus on enhancing the research ing and execution were separated, often through a com-
system’s external responsiveness. Yet improved responsive- petitive grants modality. The intent was to move away
ness in the short term must be balanced with the investment from reliance on a single research institution and toward
strategies needed over the long term for a research system to the development of a broader-based national agricultural
be productive. In the process of balancing these short- and research system (NARS). At the same time, support for
long-term imperatives, research organizations will arrive at agriculture in aid budgets was declining, and domestic fis-
a better alignment between internal research capacities and cal budgets came under pressure from structural adjust-
external partnerships and consortiums, increasingly with ment. The rapidly growing Asian economies could support
the private sector. agricultural research from expanding tax revenues, and in
Latin America market liberalization allowed greater partic-
ipation of the private sector. In Africa, however, the reform
PAST EXPERIENCE IN ORGANIZATIONAL of NARIs took place amid severely restricted budgets, often
CHANGE IN AGRICULTURAL RESEARCH within a small-country context. The World Bank remained
Investment strategies for agricultural research over the past virtually the only donor investing in national agricultural
three decades have gone through a series of approaches, research. Selective investment caused a few relatively strong
often requiring major organizational restructuring. Research NARSs to develop, leaving a majority of systems with lim-
restructuring has been much more pervasive in small ited capacities.
countries than in large, which has given systems such as
EMBRAPA in Brazil continuity in addition to significant lev-
Decentralization and participatory research
els of investment. The sections that follow describe these var-
ious approaches to investing in agricultural research. This period also saw the rise of participatory research and
the recognition that NARIs had to become more respon-
sive to demand. Improved responsiveness was the principal
Building national agricultural research institutes
justification for reforms that decentralized management
Broadly defined, the 1980s and early 1990s were the period within NARIs and created autonomous research councils.
of the national agricultural research institute (NARI), when The councils, which often had farmer representation,
A principal lesson concerns the importance of strengthening There remained a pervasive sense, especially among bilateral
the capacity of research organizations, not just financing and multilateral investors, that agricultural research in the
Agricultural research in developing countries is char- organized clusters in which firms’ market, processing,
acterized by significant underinvestment, especially in and management expertise were matched with expertise
Africa. It remains very much a public activity that pro- from public research institutes (IAP 3). Three govern-
duces public goods. Government remains the largest ment agencies, each with a slightly different mandate,
contributor to public agricultural research, accounting managed the funding. In India a similar program was
for an average of 81 percent of funding. Internally gen- managed by a program office organized within a World
erated funds, including contracts with private and Bank loan (IAP 2). The primary funding mechanism was
public enterprises, account for only 7 percent. Because competitive grants, awarded to specific types of partner-
continuity of financing is so critical to the productiv- ships, often with explicit contractual terms.
ity of agricultural research, new approaches to funding To diversify and sustain funding, the beneficiaries of
have been piloted over the past two decades. As the the research are increasingly required to contribute. In
precursors of funding strategies for AISs, they offer Kenya, for example, levies have funded research on
insight into the potential challenges involved. export crops (tea and coffee). In Uruguay, producer
The new approaches shared two fundamental char- associations invested directly in national commodity
acteristics. They separated funding decisions from the research programs. More generally, tax incentives have
execution of research and they expanded the sources encouraged companies to invest in R&D by hiring their
and sustainability of financing. own researchers or contracting with public agencies. In
To ensure accountability and a research agenda all of these arrangements, the research supported is
that met users’ needs, representatives of the private defined much more specifically to reflect users’
sector, farmers, and the public sector decided which demands, ensure that appropriate products are devel-
research to fund, primarily through competitive oped, and promote accountability.
grants. This separation required new organizational Such funding sources are still a small component of
arrangements to manage the increased transaction overall funding for agricultural research, however.
costs, most often in the form of a research foundation, Large parts of the agricultural sector still rely almost
a national agricultural research council, or a govern- entirely on public funds to meet their needs, especially
ment agency that managed competitive grants (see for plant breeding research in staple food crops and
module 6, TN 2). Experience with research foundations natural resource management research.
yielded lessons on ensuring clients had a voice in fund- The key lesson is that a strong market and commer-
ing decisions and on developing sufficient capacity to cial orientation, if not bias, appears to exist in financ-
manage the funding within a strategic framework. ing arrangements that move away from financing
Research foundations and competitive grant funds research and toward financing innovation within an
have focused on funding projects that foster critical AIS. A primary challenge is to ensure that research and
partnerships in the AIS, usually between public scien- innovation to generate public goods will be adequately
tific institutes and the private sector. For example, Chile supported.
Sources: Agricultural Science and Technology Indicators (http://www.asti.cgiar.org); Byrnes and Corning 1993.
Increasing connectivity between research or services to the private sector. For a public research
and other innovation actors agency, the degree of exclusivity in the use of its particular
In an AIS, research is chiefly oriented toward integration product or service, which is often under IP protection, often
with the rest of the innovation actors, be they private, pub- defines the contractual arrangement (see TN 2 in this mod-
lic, or civil society entities. In practice, most efforts have ule and module 5, TN 1).
focused on interactions between the public and private sec- Science parks create a useful nexus between commercial
tors. Partnerships between public and private agencies enterprises and research institutes by taking promising
involve a range of contractual arrangements, from informal research products to market and providing backstopping in
to formal, under which research institutes provide products product modification. They function best where private
The institutional role of the 15 centers of the Consulta- ment under frameworks such as integrated natural
tive Group on International Agricultural Research resource management, agricultural research for
(CGIAR) in agricultural innovation has been a source of development (AR4D), and knowledge to action pro-
debate and has changed significantly over time. The issue grams—all forerunners or embodiments of AIS.
is most often framed in terms of where the centers oper- Demand articulation was embedded in each of these
ate within the research-to-development spectrum. approaches, and organizational and institutional
innovation were seen as critical complements to
■ For the first two to three decades, the centers’ role technical innovation. The institutional matrix
was defined in terms of a division of labor with the within which the centers worked expanded again.
NARIs (the centers would mostly develop technolo-
gies and NARIs would refine and disseminate In its current incarnation, the CGIAR intends for its
them). Significant investment in training and capac- 15 centers to function more as a system than as
ity building within NARI research programs were autonomous centers. They will operate through multi-
made to develop a technology pipeline. center CGIAR Research Programs (CRPs). Financing
■ Farming systems and participatory research in the will return to longer-term core funding allocated by
1980s and 1990s expanded the institutional matrix funders through a Fund Council that is legally sepa-
within which the centers operated (and the num- rate from the centers; centers will be governed by a
ber of centers themselves expanded). The focus Consortium Board. CRPs will be managed within a
shifted from pushing the supply of technology to results-oriented framework and evaluated with respect
understanding farmers’ demand for research and to their contributions to four system-level outcomes.
conducting more work on natural resource man- The new arrangements incorporate elements of an
agement. Core funding shifted to competition for AIS approach, with a focus on measurable results
project funding. The shift heightened the emphasis (which are reflected in the contractual arrangements
on achieving development outcomes—but within between each CRP and the Fund Council). This
a less strategic, more project-driven modality. results orientation will have to differentiate between
■ The 2000s saw Centers consolidate their down- innovation-induced rural change and structured
stream research and focus methodological develop- implementation of development projects.
Source: Author.
Thailand has invested in higher-end genomics research The same trends are apparent in Latin America,
and molecular breeding, not in the Ministry of Agri- although not to the degree of Indonesia and
culture and Cooperatives but rather in the Ministry of Philippines. Colombia, Uruguay, and Argentina fund
Science and Technology. This high-end science is research on coffee, rice, sugar, and oil palm from levies
organized in clusters with private companies. on commodity sales. Chile has a number of specific
In Indonesia and the Philippines, the private sector competitive funds, all of which require collaboration
accounts for one-fifth of agricultural R&D, partly with industry. These trends suggest that agricultural
because of the plantation structure of significant parts research is moving away from direct involvement
of the agricultural economy. In turn, the Indonesian with farmers and that private companies are increas-
Research Institute for Estate Crops generates a signifi- ingly the intermediaries between researchers and
cant portion of its budget from contract research and farmers.
commercial seed sales.
Source: Author.
Note: All indicators should be disaggregated by gender when possible.
been organized by typology in this overview and by theme in tural research (TN4), and management structures and orga-
the notes that follow (except for TN 1). nizational change (TN 5).
The typology emphasizes that the market, organiza- The TNs are followed by profiles of innovative approaches
tional, and economic context needs to be understood in to agricultural research within an AIS framework. IAP 1 dis-
deciding on investment approaches for AIS. The themes cusses the redesign of an international agricultural research
covered in the notes enter into more detail on alternative center to align with an AIS approach. Two profiles focus on the
areas of investment in important domains of AIS. They implementation of agricultural innovation funds, especially in
include a discussion of demand articulation and external facilitating public-private partnerships, in India and Chile
organizational interfaces (TN 1); public-private partner- (IAPs 2 and 3). Another describes experiences with learning
ships (TN 2), regional research (TN 3), codesign in agricul- alliances (IAP 4)
277
Box 4.5 The Three Innovation Contexts
(1) Agriculture-based countries. In these countries, guide the contribution of agricultural research to
farmers have limited access to agricultural markets, the wider innovation system. Many developing
which in many cases do not function well. Most countries in South Asia, East Asia and the Pacific, the
countries in sub-Saharan Africa are in this cate- Middle East, and North Africa are in this category.
gory. In agriculture-based countries, research (3) Mature innovation countries. These countries
organizations must develop an interface with have innovation systems in which agricultural
their clients—primarily small-scale farmers, markets function relatively efficiently and farmers
extension systems, and government decision are effective market players. Most countries in Latin
makers—and with the rest of the national, America and the Caribbean and many in Europe
regional, and global research system. The private and Central Asia are in this category. In transform-
sector engages mostly in licensing technologies to ing and mature countries, research organizations
public breeding programs, multiplying improved should take greater notice of market demand and
seed developed by public breeding programs, dis- rely on market-based approaches to guide their
tributing inputs such as chemical fertilizer, or pro- contribution to the wider innovation system.
viding other small-scale and localized agricultural Research organizations are required to interface
products and services. with a wider set of clients—smallholders and com-
(2) Transforming countries. Transforming countries mercial producers, diverse private sector actors
host innovation systems in which agricultural mar- (input suppliers, processors, wholesalers, retailers,
kets are expanding and developing. A subset of industry associations, exporters), other service
farmers gain from good connections to markets. providers, and consumers—to create venues for
Transforming countries can be characterized by an them to express their needs and align national pri-
increased reliance on market-based approaches to orities to research agendas.
different reform processes to understand the impact path- Table 4.2 summarizes the approaches, their purposes,
ways through which they are expected to work. and the key knowledge assets used and exchanged as part of
each approach. The approaches or mechanisms can be
selected and combined to fit the particular need for innova-
INVESTMENT NEEDED
tion in a given context.
This note describes nonmarket and market-based approaches
to investment, starting with approaches that fit particularly
well with agriculture-based contexts and moving to more Strengthening information sharing and
commercial, market-oriented approaches. The note does demand articulation in research systems
through formal coordination organizations,
not provide an exhaustive list of investment mechanisms
enhanced communication, and ICTs
but features the mechanisms that are most relevant for
developing countries: In many countries, formal organizations facilitate regular
exchanges of information and identify research prior-
1. Strengthening information sharing and demand articu- ities. These organizations include committees, agencies,
lation in research systems through formal coordination and other formal bodies that obtain farmers’ input on
organizations, enhanced communication, and ICTs. research results (for example, their opinions of the per-
2. Promoting greater participation of farmers and other formance of new cultivars), on longer-term priorities for
clients in technology development processes. research and/or competitive research funds, and on the
3. Technology transfer and commercialization approaches. wider policy issues associated with agricultural production
4. Financing mechanisms for multistakeholder approaches. and markets.
Table 4.2 Approaches to Strengthening the Articulation of Demand and Interfaces with the Agricultural Research
System in Agriculture-Based, Transforming, and Mature Innovation Contexts
Approach Purpose Key assets Examples (sources)
Formal Information exchange, Scientific information; Agriculture-based: Research Extension–Farmer–Input–Linkage System
coordination priority setting, extension and advisory (REFILS) in Nigeria (Koyenikan 2008); Research and Extension
organizations coordination, services Linkage Committees (REALCs) in Ghana (World Bank and IFPRI
fund allocation 2010); Senegal Agricultural Services and Producer Organizations
Project
Transforming and urban: Fund governance and national
research/innovation councils or forums
Communication Share information; See Information and Communication Technologies for Agriculture
and ICT demand articulation Sourcebook (World Bank 2011, forthcoming).
Participatory Engage farmers in Scientific information; Participatory plant breeding (Sperling et al. 2001; Morris and Bellon
research research priority extension services; 2004)
setting, selection, capacity/methodology Central America Learning Alliance (Faminow, Carter, and Lundy
testing, and in participatory 2009); CIALs in Colombia, Honduras, Ecuador, Bolivia, and
experimentation approach Nicaragua (CIAT 2006; Quiros et al. 2004)
Codesign Engage diverse stake- Scientific and local Liu (1997); Almekinders, Beukema, and Tromp (2009); Hocdé et al.
approaches holders in the entire information; (2009); Bernet et al. (2006, 2008)
R&D cycle capacity in codesign
approach
Innovation Promote co-innovation; Public and private Agriculture: Civil society partnerships: Papa Andina (Thiele et al.
platforms exchange information; technologies; capacity to forthcoming; Devaux et al. 2009, 2010; Horton et al. 2010; Smith
identify opportunities reach commercial and and Chataway 2007)
and set priorities; underserved markets; Transforming: Agricultural innovation networks in Argentina (Ekboir
promote policy private financing; farmer- and Parellada 2002; Trigo et al. 2009), Bolivia (Monge et al. 2008),
change private sector-policy Mexico (Ekboir et al. 2009), Andean South America (Devaux et al.
maker linkages 2009, 2010; Horton et al. 2010), and the Netherlands (Klerkx,
Aarts, and Leeuwis 2010); Research consortiums: CLAYUCA on
cassava (Patiño and Best 2002; see IAP 5 in module 1)
Urban: Netherlands (Janssen and Braunschweig 2003; Klerkx and
Leeuwis 2009a)
International and regional research networks: CGIAR, FARA, ASARECA,
APAARI
Consortiums Australia; NAIP India (IAP 2)
Technology Acquire technology Scientific information and Agriculture: Material transfer agreements between international and
transfer tools; capacity for national research centers for wheat improvement (Dubin and
dealing with international Brennan 2010; Louwaars et al. 2005) and biotechnology (Byerlee
agreements and Fischer 2002)
Urban: Agricultural biotechnology (Byerlee and Fischer 2002);
drought-tolerant maize research (AATF 2011)
MODULE 4: THEMATIC NOTE 1: DESIGNING AGRICULTURAL RESEARCH LINKAGES WITHIN AN AIS FRAMEWORK 279
Table 4.2 Approaches to Strengthening the Articulation of Demand and Interfaces with the Agricultural Research
System in Agriculture-Based, Transforming, and Mature Innovation Contexts (continued)
Approach Purpose Key assets Examples (sources)
Commercialization Commercialize Public technologies; capacity Transforming: ICSRISAT Hybrid Parents Research Consortia for
programs public research to commercialize new sorghum and pearl millet (Gowda et al. 2004; Pray and Nagarajan
products 2009); Sustainable Commercialization of Seeds in Africa (SCOSA)
(Jones 2006)
Urban: Cooperative R&D agreements (Day-Rubenstein and Fuglie
2000); Plant genetic IP management (Louwaars et al. 2005)
Public-private Develop new products Scientific information, tools, East Coast fever vaccine development (Smith 2005; Spielman 2009);
research and materials; managerial agricultural research (Spielman, Hartwich, and von Grebmer
partnerships capacity 2010); see also IAP 2 in module 6
Science parks and Develop new products Scientific information and CIAT and ICRISAT (Spielman, Hartwich, and von Grebmer 2010);
business tools; managerial capacity; see also TN 3 and IAP 1 in module 5
incubators private and public capital
University-industry Promote co-innovation; Public technologies; capacity Agricultural biotechnology (Ervin et al. 2003)
research commercialize public to commercialize new
collaborations research products
Alternative Farmer-funded research; Financing from financial Competitive grants and innovation funds (World Bank 2006, 2010;
funding finance research markets and donors; Gill and Carney 1999); Research prize schemes (Masters 2003);
mechanisms specialized scientific farmer levies (Klerkx and Leeuwis 2009b); market segmentation
services schemes (Kolady and Lesser 2008; Lybbert 2002)
Source: Authors.
Note: APAARI = Asia Pacific Association of Agricultural Research Institutions; ASARECA = Association for Strengthening Agricultural Research in East-
ern and Central Africa; CIALS = Local agricultural research committees; CGIAR = Consultative Group on International Agricultural Research;
CLAYUCA = Latin American and Caribbean Consortium to Support Cassava Research and Development; FARA = Forum for Agricultural Research in
Africa.
In Ghana, Research-Extension-Linkage Committees research grant scheme was based on the RELCs’ iden-
(RELCs) include producers, researchers, and extension tification of farmers’ problems. Thirteen research proj-
agents from the Ministry of Food and Agriculture ects from seven regions were approved for funding.
(MoFA). The committees facilitate dialogue and elicit Despite this effort at planning from the farm level
better guidance from producers about local research up, the RELCs proved ineffective in strengthening links
and extension efforts. Five RELCs were piloted, one in between research and others in the AIS. Funding for
each of the country’s major agroecological zones, implementing RELC initiatives has been limited, partly
under the World Bank–funded Agricultural Services because responsibility for allocating operating funds is
Project. Eventually the committees were expanded to divided between the national research institute (the
cover each of Ghana’s 10 regions. Each regional RELC Council for Scientific and Industrial Research) and
has 15 members, including two representatives of MoFA. Perhaps owing to these financial constraints, the
farmer organizations, one representative from a non- RELCs have not engaged greater numbers of farmers
governmental organization, one representative of and end users and have had little influence on the
agribusiness, and representatives from research and research agenda. Sustainable financing for farmers’ and
extension.a Under the Agricultural Services Project, end users’ participation in the RELCs is likely to have
the second call for proposals from the competitive made them more effective.
Box 4.7 Lessons from Senegal’s Agricultural Services and Producer Organizations Project
The Agricultural Services and Producer Organizations the National Fund for Agricultural Research
Project (PASAOP) strengthens end-users’ demand for (FNRAA).
services and public research institutions’ ability to meet ■ Engage producer organizations in decision making
their demands. In its first phase (1999–2006), PASAOP as genuine advocates of proposals. Producers also
established a network of producer organizations in chair the management committee of FNRAA to
142 of 320 rural council areas, along with decentral- ensure that research programs are relevant to their
ized, demand-driven agricultural services. In its second needs.
phase (2006–11), the project further strengthens the ■ Link producers through a network of rural consul-
institutional framework, extends the coverage of agri- tative forums (CLCOPs) in 152 rural council areas
cultural advisory services nationwide, supports the so producers contribute fully to defining, imple-
emergence of private service providers, strengthens menting, and evaluating research and extension
research capacity and focus, and further empowers programs. Producer organizations have also estab-
producer organizations, while increasing their social lished and manage their own Demand Driven Rural
accountability and representation. Both project phases Services Fund, which allocates resources to micro-
have built on the following approaches: projects prepared by producer organizations.
MODULE 4: THEMATIC NOTE 1: DESIGNING AGRICULTURAL RESEARCH LINKAGES WITHIN AN AIS FRAMEWORK 281
Box 4.7 Lessons from Senegal’s Agricultural Services and Producer Organizations Project (continued)
stakeholders (government, other donors, commodity ■ Two channels for research proposals (from
organizations, and the private sector) is expected to researchers and from users) provided flexibility.
reach 30 percent. They made it possible to respond to producers’
immediate concerns as well as opportunities identi-
Lessons fied by scientists.
■ Complement core funding with competitive fund-
■ Invest in producer organizations. Local institu- ing. Together, these two mechanisms guarantee that
tions can responsibly and efficiently implement institutional development continues. Funding for
their activities and limit the need for a project to operating costs goes directly to research teams work-
establish an implementation unit. Producer fed- ing on projects relevant to users, to whom they are
erations with adequate project support improved accountable. Core funding for developing human
their efficiency and internal governance (quality resources is essential to elicit relevant proposals of
of records, meetings, actions taken, satisfaction good quality.
of members). Demand-driven funds that sup- ■ Specific pro-poor strategies must be designed into
ported physical investments and equipment were the project. The project’s second phase seems to
more effective than those focused only on soft have had a greater impact in richer households than
investments. poorer households.
Sources: Diaw, Samba, and Arcand 2009 on impact assessment of Phase 2 of PASAOP; World Bank Project Appraisal Documents
for Phases 1 and 2 of PSAOP; World Bank Implementation and Completion Report for PSAOP.
Note: PSAOP = Programme d’Appui aux Services Agricoles et aux Organisations Paysannes; ANCAR = Agence Nationale de
Conseil Agricole et Rural; FNRAA = Fonds National pour la Recherche Agricole et Agro-Alimentaire; CLCOP = Cadre Local de
Consultation des Organisations de Producteurs.
agricultural problems. Farmers (and others) participate in government officials in the iterative, adaptive, and flexible
monitoring and evaluating the results. Some participatory process of developing innovations. The core principles of
research is done in farmers’ fields. This approach is codesign include joint planning, implementation, and
particularly suited to agriculture-based countries in which decision making related to all activities that foster
resources are at a premium and farmers are often isolated innovation; close coordination among stakeholders at all
from others in the AIS. The approach allows research strategic and operational levels; and combining scientific,
organizations to complement their programs in cultivar other technical, and local knowledge and other resources.
improvement and crop management with work on more Codesign is often used when problems are complex
integrated and natural resource management issues, such as and/or the scale involved is challenging. Examples include
common resource management of pastures, shared water the shared management of a dwindling natural resource
resources, fisheries, and communal forests, and incorporate held in common (a forest or water source, for example); the
gender and community-based development perspectives period of adjustment to new policies or market operations;
through farmer organizations, forest user groups, and local the development of shared understanding of problems and
savings and credit associations. their solutions, when there is potential to do so; and prob-
lems for which previously designed solutions or scientific
Codesign approaches. Codesign approaches (discussed in and technical knowledge are not available. Given the issues
detail in TN 4) seek better articulation between the supply of scale involved in such a large group of actors and their
of research (from researchers) and demand for research numerous concerns, codesign relies on at least some of
(from users). Researchers engage systematically with a the concerned stakeholders to have the experience and
heterogeneous set of actors, which may include farmers, skills to facilitate, coordinate, and negotiate multistake-
input suppliers, traders, processors, researchers, NGOs, and holder efforts (module 1). The Papa Andina program
MODULE 4: THEMATIC NOTE 1: DESIGNING AGRICULTURAL RESEARCH LINKAGES WITHIN AN AIS FRAMEWORK 283
consisting of private, public, civil society, and producer Technology transfer and commercialization
actors. Most consortiums have a lead organization, and approaches to integrating private actors
each partner has a specific role and commits resources. Technology transfer is the foundation of many research pro-
Contributions from a range of actors, including private grams in agriculture-based countries and prevalent in trans-
enterprises, cover various aspects of R&D (demand forming and urbanized countries. Transforming and more
identification, R&D investment, technology transfer and mature innovation contexts increasingly rely on formal
adoption). Consortiums are often funded through com- transfers of technology from public research organizations,
petitive grants (which match funds to resources mobilized universities, and the private sector. Such technology may
by partners) for a limited period. require IP protection and/or other legal agreements that
Australia (box 4.8) and the Netherlands (box 1.14 in transfer property rights to commercial or international
module 1, TN 1) are examples of mature urban innovation partners. Many of the technology transfer and commercial-
contexts where a consortium approach helped R&D meet ization approaches in these countries build on approaches
specific challenges. Consortium approaches have shown introduced earlier, but they require a higher level of capac-
promise in transforming countries; see the discussions of ity with respect to advanced science and technology,
approaches in India (IAP 2) and Chile (IAP 3). complex regulatory systems, IP protection, sophisticated
Australia’s AIS is one of the most dynamic and success- demand to academic centers of excellence in joint
ful in the world. Direct engagement of producers problem-solving.
through their financing and oversight of commodity- Traditionally Australia has invested relatively heav-
focused (mainly applied) research was the primary ily in agricultural research through a blend of public
mechanism for gaining insight into the needs and and private (producer levy) funds, which were largely
demands of key user-groups. Sharpened priority set- used by federal and state government agencies with
ting, increasingly involving ex ante economic analysis some producer oversight through farmer membership
of competing proposals along with ex post impact on various advisory committees and an institutional
assessments, has been the hallmark of the approach. watchdog (the Productivity Commission for institu-
Agricultural research intensity has been maintained at tional learning and ensuring accountability). Producer
nearly 0.04 of agricultural GDP, among the highest lev- funding was matched equally by federal government
els in the world, and total factor productivity for agri- support of up to 1 percent of respective commodity
culture has been close to 2 percent per year since the GDP.
major reforms in the agricultural research system A key lesson is that a charismatic change leader with
began in the mid-1980s. a relevant vision is critical. In this case, it was a minis-
A key feature of the reforms is the creation of ter of primary industries, who was insightful and
Cooperative Research Centres (CRCs), which are joint effective (originally a farmer, then a research agricul-
agreements between research providers to undertake tural economist and a politician). The strong (albeit
R&D in particular areas. CRCs must comprise at least less than perfect) accountability mechanisms built
one Australian end-user (either from the private, into the new processes, such as the CRCs, surely
public, or community sector) and one Australian helped greatly. A major lesson for other countries
institution of higher education (or research institute is that, given the inherent complexity of the AIS, it is
affiliated with a university). These institutions work critical for public policy analysts to keep pursuing
for a limited period (generally seven years) to resolve their understanding of the realities and opportuni-
technological problems in a multidisciplinary fashion. ties in agricultural research as it evolves and to keep
The involvement of universities and their disciplinary a sharp eye on the effectiveness of institutional
expertise is especially important for linking industry arrangements.
Source: Jock Anderson, personal communication.
Technology transfer agreements. The classic example Commercialization programs. These programs cre-
of technology transfer agreements is the formal ate windows for private companies or entrepreneurs to
exchange of breeding materials for crop improvement, access public research outputs and move them into
typically from international research centers or univer- commercial use. Often this approach is used to move
sities in industrialized countries to national research improved breeding material from public research
organizations in developing countries. Scientists and organizations to private seed companies. For example,
research managers in developing countries require the Hybrid Parents Research Consortiums of the Inter-
additional skills to understand the increasingly com- national Crops Research Institute for the Semi-Arid
plex material transfer and intellectual property agree- Tropics have provided more than 35 Indian companies
ments that govern technology transfer; they must also with improved sorghum, pearl millet, and pigeonpea
expand their linkages to international and regional sci- lines for commercial use. The program for Sustainable
ence networks. Great success has been achieved with Commercialization of Seeds in Africa, the Eastern and
technology transfer programs (for example, for wheat Southern Africa Seed Alliance, and the West Africa Seed
and rice improvement in Asia, NERICA rice in Africa, Alliance are also designed to improve the private sec-
and orange-fleshed sweet potato in several postconflict tor’s access to breeding materials and strengthen its
countries in Africa). seed marketing capacity.
Source: Authors.
MODULE 4: THEMATIC NOTE 1: DESIGNING AGRICULTURAL RESEARCH LINKAGES WITHIN AN AIS FRAMEWORK 285
As discussed in the module overview, they are a useful nexus stakeholders (see module 6, IAP 1 for a matching grant
between the private sector and research institutes (particu- scheme to develop agribusiness in Zambia). Matching
larly universities), taking promising research products to grants require a financial commitment from the beneficiar-
market and providing backstopping for product modifica- ies (farmers, entrepreneurs) and therefore may be more
tion. Their diverse services include facilitating the creation effective than competitive research grants at enhancing the
of public-private partnerships for research, providing infra- dissemination and use of knowledge and technology. They
structure, and providing other services, including business are also better suited for funding overall innovation and
development. The scope of this note does not allow the activities requiring private sector engagement.
numerous science parks to be discussed in detail (including Both competitive research grants and matching grants
China’s agricultural demonstration and technology parks; involve short- to medium-term funding arrangements.
CIAT’s Agronatura, and France’s Agropolis); see module 5, They should complement, never substitute for, stable
IAP 1 on the incubator affiliated with the Agri-Science Park funding for long-term research, private sector develop-
of the International Crops Research Institute for the Semi- ment, human resource development, and infrastructure
Arid Tropics (ICRISAT). maintenance and development.
MODULE 4: THEMATIC NOTE 1: DESIGNING AGRICULTURAL RESEARCH LINKAGES WITHIN AN AIS FRAMEWORK 287
encouragement, or financing—from higher levels. In Lessons related to specific mechanisms:
designing and implementing strategies to facilitate inter-
actions and linkages, incentives and motivating factors ■ Pay careful attention to the design of multistakeholder
among staff and leaders of research organizations (and approaches and platforms, because they do not work in
other organizations with which they interact) must be all contexts. These platforms need good facilitation to
assessed with care. Organizations need to enhance support bring stakeholders (with their potentially divisive power
for risk-taking managers and collaborative teams experi- relationships, capacity differences, and levels of interest)
menting with learning approaches—but coupled with together. To sustain these programs, enhance negotiation
periodic external evaluations. Change of the kind and conflict management, improve the representation of
described here requires strong, long-term leadership and poor and marginalized farmers, fully fund communica-
political commitment in addition to incentives. tion and knowledge management, and clearly define
roles and functions of advisory committees, secretariats,
Lessons specific to particular innovation contexts: and members. Engagement of high-level policy makers is
often crucial.
■ In agriculture-based countries, improve researchers’ ■ It takes time to form and sustain networks or platforms.
responsiveness to farmers’ needs and increase access to These interfaces require clear priorities, roles, and mile-
global science and technology through a diversified, stones. Substantive capacity strengthening of all partners
cross-cutting approach to participatory research and in partnership design, trust-building, and effective com-
technology transfer. Strengthen individuals’ capacity to munication is required for these approaches to work,
use participatory approaches by building skills in facili- along with incentives for participation.
tation, negotiation, conflict prevention and resolution, ■ Consortium approaches have the advantage of a
building relationships and trust, and developing the rules problem-oriented focus. This focus permits the defini-
of the game. Broaden research organizations’ access to tion of partners’ objectives, goals, and responsibilities,
technology by expanding their links to international sci- which in turn permits better management and evalua-
ence networks and their understanding of complex tion of the collaborative effort. The disadvantage is that
material transfer and IP agreements. the reason for collaboration ends the moment that the
■ In transforming countries, use combined market/non- problem ceases to need attention.
market approaches (making use of the skills just ■ Innovation brokers play an important role in facili-
described) to engage the private sector more actively tating change in an innovation system. More formal
and encourage opportunity-driven entrepreneurship. approaches to innovation brokering include the use of
Public sector orchestration and financing are key to research coordination councils, committees, and other
addressing transaction costs (of collective action and bodies (see module 1, TN 2).
negotiation, for example), reducing risk, and providing ■ Analyze the pros and cons of new funding mechanisms
incentives. Innovation networks and platforms are vital carefully before introducing them. Matching grants
tools to identify opportunities, set priorities, and influ- may better suit innovation contexts where private sec-
ence the research agenda. tor engagement is crucial and where dissemination
■ In urban countries, policy makers and practitioners can requires significant attention. Competitive research
invest in sophisticated competitive funding mecha- grants can develop high-quality research portfolios,
nisms. The channels through which user groups articu- but they tend to have high operational costs and have
late their needs should be advanced enough to ensure been ineffective in engaging the private sector and
that science, technology, and innovation respond to mar- disseminating knowledge and technology. Small
ket opportunities and that public research organizations research systems may not allow sufficient scope for real
work alongside the private sector and other stakeholders. competition.
289
Box 4.10 Public-Private Partnerships and the Changing Roles of Public and Private Agents in
Agricultural Research
■ PPPs are more than an organizational solution ■ To develop and improve their image in line with
between market and hierarchy; they are arrange- public goals and respond to corporate responsibility
ments that maximize benefits by using the creativity criteria, private companies will partner with the
and synergy of collective action to respond simulta- public sector. Corporate social responsibility alone
neously to public and private needs. is not a good motivation for PPPs that want to pro-
■ Public-private partnerships (PPPs) generate social mote sustainable businesses, however.
benefits in the way that they leverage resources from ■ It is simplistic to reduce the private sector’s interest
the private sector and combine them with public in agricultural research to the development of pri-
resources. In this way, additional resources and vate goods that can be protected by IPRs. In fact,
capacities become available to address pressing private partners in only a small fraction of 124 PPPs
research issues. in agricultural and agro-industrial research in Latin
■ PPPs can be instrumental in increasing the overall America were interested in protecting property
volume of agricultural research, although develop- rights; the few examples occurred only in seed com-
ing countries may not replace public funds substi- panies. Apparently private companies benefit more
tuted by private funds (and match levels of private from the synergistic use of resources than from
investment in more developed countries). protecting the IP of research results.
Table 4.3 Types of Research Subject to Public- development and diffusion of a new pest-management
Private Partnerships technology simply because they are not informed about
their common interest and complementary capacities. In
Type of research Example
fact, potential partners from the public and private sector
Creative research partnerships that Biotechnological exploration
generate and explore new scientific of compounds in often fail to collaborate because each lacks knowledge
finding pharmaceutical plants about the other sector and the potential benefits of a part-
Applied research partnerships that use Development of a plant nership. A funding agency could improve information
an existing research methodology to variety that resists a
generate new solutions new pathogen
flows by financing meetings and a platform where these
Development-oriented research Development of a new players can start interacting and identify common interests
partnerships that focus on the potato chip to develop a common work agenda.
development of products
Second, PPPs constitute funding mechanisms in their
Diffusion-oriented partnerships that A seed multiplication
promote the dissemination of program supporting own right that enable a funding agency to engage with
developed knowledge and dissemination of a actors in agricultural innovation, particularly the private
technology particular plant variety sector. (See also IAP 2 and module 5, TN 2 and IAP 2.) For
Source: Author. example, a development agency or donor can use a PPP to
support the efforts of an international agribusiness spe-
cializing in dairy products to work with small-scale dairy
producers who initially lack the capacity to participate in
INVESTMENT OPTIONS FOR SUPPORTING
the dairy value chain. The funding agency would ensure
PUBLIC-PRIVATE RESEARCH PARTNERSHIPS
that activities under the partnership would also generate
PPPs become interesting subjects for investment in two social benefits, particularly for the small-scale producers.
ways. First, they constitute product development mecha- Quite a number of PPPs have been set up over the past
nisms that foster collaboration for innovation that other- ten or more years in developing country agriculture
wise would not occur. For example, a private company and (Hartwich and Tola 2007; Spielman and Hartwich 2009). In
a public research institute may not collaborate in the many cases the public and private organizations involved
Box 4.11 Public-Private Partnership for Participatory Research in Potato Production in Ecuador
An international potato chip producer operating in After some months of negotiation, the partnership
Ecuador could not procure enough potatoes of suitable was set up and a formal agreement signed. INIAP pro-
quality to use all of its local processing capacity. The vided research and extension capacities while the pri-
company tried to provide incentives to farmers through vate company provided funding. A national research
contract farming and higher prices, with unsatisfactory fund contributed additional public funds. The partner-
results. The company finally determined that on its ship ended after some years because the company had
own it could not persuade small-scale farmers to achieved its objectives.
deliver more and higher-quality potatoes. It partnered Factors that enabled the partnership to succeed
with the National Agricultural Research Institute included a good match of interests (INIAP sought to
(INIAP, Instituto Nacional Autónomo de Investiga- support small-scale farmers, from whom the company
ciones Agropecuarias) to focus on identifying, develop- wanted to buy quality potatoes). The partners’ compe-
ing, and distributing potato varieties with the required tencies were also well matched: INIAP was expert in
processing qualities. The partnership had an extension developing and disseminating improved potato vari-
component in which INIAP helped farmers adopt the eties, and the company had expertise in evaluating the
new varieties, grow them with appropriate manage- cost-reduction and product-improvement potential of
ment practices, and increase productivity and output. the potato varieties.
Source: Author.
MODULE 4: THEMATIC NOTE 2: BUILDING AND STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS IN AGRICULTURAL RESEARCH 291
Box 4.12 Public-Private Partnership for Processing Cashew Nuts in Northern Brazil
In the late 1990s, Brazil’s cashew nut sector was in EMBRAPA constantly exchanged information with
ruins. Competition and price variation on the world growers and the exporter about the appropriateness
market, along with poor product quality and misman- and readiness of the technology. Growers slowly
agement, caused the processing industry to go bank- became familiar with the technology and started to
rupt, taking a large number of small-scale producers adapt it to their own needs. Eventually farmers gained
with it. Producers’ crop remained without buyers, and substantial capacity in cashew processing and the
they had few alternatives to cashew production. commodity was once again, through the exporting
Brazil’s national agricultural research institute, partners and soon through competing exporters, sold
EMBRAPA, partnered with a cashew-exporting com- internationally. Farmer incomes benefited signifi-
pany and a number of organizations of small-scale cantly as farmers regained a market for their primary
growers to develop and diffuse microprocessing units product and profited from the value added by their
for cashews that would be owned and managed by the primary processing units. The exporting company
grower organizations. Researchers adapted large-scale also increased its profits, which benefitted employees
processing technology to develop much smaller pro- and shareholders. The partnership succeeded because
cessing units they called “minifactories” (minifabricas). EMBRAPA’s advance project identification and plan-
The export company provided knowledge of market ning were good, the market for cashews remained
demand, product quality, and processing requirements, strong, and EMBRAPA and the exporting company
as well as some quite limited funding for training had complementary knowledge and skills (processing
farmers. EMPRAPA covered the main costs of the technology in EMPRAPA and market information in
partnership, which involved laboratory research and the exporting company).
on-site testing of growers’ processing units.
Source: Author.
Note: EMBRAPA = Empresa Brasileira de Pesquisa Agropecuária.
Box 4.13 Public-Private Partnership for Research on New Wheat Varieties in Argentina
A private European company specializing in wheat, certain varieties that it had developed but not tested,
sorghum, and maize seed wanted to benefit from released, or multiplied. The two organizations entered
Argentina’s rapidly expanding market for cereal seed a partnership that envisioned the exchange of certain
but knew little of Argentina’s wheat breeding program genetic materials to develop and multiply seed of new
over the years. For example, it did not know which spe- varieties. The IP for the resulting varieties would
cific resistance and tolerance traits had been introduced remain with the public sector, but the seed company
(and failed) and which varieties, lines, and breeding would benefit from seed sales and pay royalties to the
strategies had been used to raise wheat yields. The public institute. The partnership was phased out after a
national agricultural research institute (INTA, Instituto number of years and the company (among others) now
Nacional de Tecnología Agropecuaria), partly funded caters to a well-established market for wheat seed. Fac-
through a levy on the agricultural sector, had down- tors that contributed to the partnership’s success
sized its wheat breeding program and was looking for included their complementary skills (INTA’s excellence
a partner with whom it could exchange information in wheat breeding and the company’s advantages in
and genetic material. It was also interested multiplying seed multiplication and marketing).
Source: Author.
MODULE 4: THEMATIC NOTE 2: BUILDING AND STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS IN AGRICULTURAL RESEARCH 293
private collaboration (or vice versa) are one instrument to Partnering may not always be the best option
develop PPPs. Evidence from competitive grant schemes
Public research organizations and development funding
for agricultural research in Latin America indicates that
agencies that seek to support partnerships need to separate
without a solid core budget, public organizations cannot
the wheat from the chaff. Promoting and financing part-
enter such partnerships from a sufficiently strong position
nerships simply for their own sake is not useful. Partner-
to negotiate an agreement that reflects their interests
ships may not produce good results, and in many situations
(Echeverría 1998a).
another solution is more appropriate. For example, a pub-
lic research agency may consider contracting the services of
LESSONS LEARNED a private laboratory. A private company may prefer to set
up its own research unit rather than collaborate with pub-
Despite the numbers of successful PPPs, the concept is still lic researchers.
under development. In many situations PPPs fail to meet
their potential to improve agriculture and rural livelihoods
in developing countries, for two reasons. First, the number Motivation matters
of PPPs is still very low and cannot match the opportunities Governments and funding agencies that want to support
to conduct research and develop innovations by means of partnerships need to assess prospective partners’ motiva-
PPPs. Second, many efforts to build partnerships among tions for entering a partnership. According to Spielman
public research organizations and the private sector fail to and Hartwich (2009), one can distinguish between:
bring sufficient benefits to both partners; usually one part-
ner profits at the expense of the other (Hartwich and Tola ■ Representational partnerships, in which one partner
2007). Nor do most PPPs use their complementary joins the partnership for prestige without contributing
resources effectively to produce substantial social benefits. knowledge and/or resources.
Planning can be weak. Prior to initiating their partnership, ■ Outsourcing partnerships, in which one partner seeks to
partners do not engage in the necessary negotiations to outsource research and diffusion activities to another.
clarify their common interests, each partner’s commit-
ments, and the redistribution of benefits. Usually these
partnerships collapse as soon as resources become scarce Box 4.14 Indicators for Evaluating
and/or accrued benefits are not shared equally. Public-Private Partnerships
Experience on the best strategies for supporting collabo- in Agricultural Research
rative agricultural research and PPPs is mixed (Hall 2006).
Specialists in plant breeding and biotechnology research
■ Costs of interaction among the partners,
stress the value of strengthening public institutions’ aware-
including time for negotiation as well as cost of
ness of and capacity to manage IPRs (Lewis 2000; Byerlee
communication and monitoring compliance.
and Fischer 2002). Other analysts emphasize the impor- ■ Contribution of each partner to the partnership
tance of negotiating not only IP issues but other aspects of in terms of human resources and expenditure.
benefit sharing and resource commitment (Rausser, Simon, ■ Strengths, weaknesses, opportunities, and threats
and Ameden 2000; Vieira and Hartwich 2002; Hall et al. of the partnership as perceived by partners, ben-
2003). The following sections discuss some of the most eficiaries, and other stakeholders.
important lessons from various studies and experiences. ■ Mapping of communication and information
flows among individuals in the partnership.
■ Anecdotal information on the history and func-
Public-private partnerships as funding opportunities tioning of the partnership as perceived by part-
ners, beneficiaries, and other stakeholders.
PPPs are a mechanism through which funding agencies can
■ Joint authorship of publications by partners.
build collaborative research as well as an arrangement into ■ Attribution of patents and user rights.
which they can inject public funds. In a partnership to ■ Intensity of use of research results by each of
develop wheat varieties such as the one in Argentina the partners.
described in box 4.13, public research funds (for example, a
competitive grant) would support the partnership finan- Source: Author.
cially while ensuring that social benefits are met.
MODULE 4: THEMATIC NOTE 2: BUILDING AND STRENGTHENING PUBLIC-PRIVATE PARTNERSHIPS IN AGRICULTURAL RESEARCH 295
PPPs in the context of innovation systems, suggesting that evolve spontaneously in the search of funding oppor-
that mechanisms of collective action, joint learning, and tunities or prestige.
complementary use of resources are all operational in the A public funding agency may find few of these partner-
development and diffusion of innovation. ships in place, however, and could consider helping to build
adequate partnerships. If after a period of support and bro-
In conclusion, investing in PPPs makes sense where kerage a PPP shows signs of complying with the criteria just
there is agreement on objectives, strong commitments, mentioned, it can be considered for further funding.
some added value through partnering, and a fair distribu- Finally, any PPP that is up and running can benefit from
tion of benefits. PPPs that are badly designed, fragile, continuous support to its management that helps sustain it
and/or result in a public subsidy to private organizations until the end. Given the complex relations prevalent in part-
do not represent value for public investment. Partnerships nerships, tension is to be expected, and a funding agency
should also have a limited time period. Funding agencies should consider the support for partnership management as
should particularly exclude from funding any partnerships a promising opportunity.
pontaneous self-organization will not be sufficient Regional agricultural research has a long history rooted in
297
Amazon,7 and in Central America and the Caribbean. Despite these issues, the need for collective regional activity
Successful regional commodity programs also developed. is greater than ever, because more problems and opportuni-
ties are transnational.
Every subregional organization evolves within its unique On the demand side, investment is needed in the
combination of constraints and driving forces. Latin Amer- capacity to exploit market-driven agricultural opportuni-
ica offers several rich experiences from which sub-Saharan ties and to negotiate rules and standards for better compe-
Africa can benefit. Latin American countries have used their tition. On the supply side, investment in knowledge for
middle-income status to invest in agriculture as a dynamic addressing emerging challenges, such as transboundary
sector. Strong rural organization and fiscal systems that diseases, climate change, water scarcity, and increased
leave resource-based revenues in the regions are often price volatility in global markets. All of these challenges
important elements in this strategy (box 4.15). have significant implications for the knowledge system
Many regional and subregional initiatives have strength- and do not recognize country borders. Moreover, oppor-
ened particular components of an innovation system at the tunities provided by advances in biotechnology require
national level, but they have been faced variously with concentrated investments in infrastructure, advanced
national free-riding, avoidance of responsibility or inability computing, and scarce human capacity that call for central
to carry out commitments to collective action, and sensi- hubs and platforms that offer economies of scale (as in the
tivities with respect to “equitable sharing of the benefits.” example in box 4.16).
Box 4.15 Subregional Organizations in Latin America: Strong National Capacity, Commitment to Research,
and Alignment with an Emerging Regional Economic Community as Drivers of Success
Created 1980, PROCISUR has been an autonomous economic activity in the region. Despite this success, in
regional organization since 1981, located with IICA in recent years, the smaller members of Mercosur have
the headquarters of Mercosur (the Southern Common increasingly resisted deeper economic and regulatory
Market). In its evolution, PROCISUR came to focus on integration. Finding a common policy has become
themes affecting all countries of the region, including more difficult.
biotechnology policy and intraregional trade. PRO- South America has also seen the emergence of
CISUR’s success in generating political and financial commodity consortia funded by the region to address
support for itself and its members reflects the influence special needs for research or integration with the rest of
of two strong research systems, Argentina and Brazil, as the innovation system. The Latin American Fund for
well as a functional regional economic community, Irrigated Rice (FLAR) collaborates with CIAT but takes
Mercosur. PROCISUR has been adept at championing responsibility for irrigated rice in temperate countries.
projects that bring together national universities and CONDESAN was created with the help of CIP to
national research institutes with regional and interna- involve more than 30 actors in the potato innovation
tional partners, thus closing a gap at the national level system. After 25 years of public research on cassava,
that may exist. (LOTASSA, a research project on forage CLAYUCA’s role has evolved into organizing public
legumes, is one example.) As the regional community, and private organizations to promote uses for cassava
MERCOSUR has several redistributive measures to in addition to food. The concept of a regional innova-
support the smaller members of the community. The tion system seems to be taking shape. Convergence of
integration of markets and realignment of production policies, market integration, and some equalization
have created incentives for investment and relocating measures are important factors.
Source: Author.
Note: CLAYUCA = Latin American and Caribbean Consortium to Support Cassava Research and Development; CONDESAN =
Consorcio de Desarrollo Andino/Consortium for Andean Development; FLAR = Fondo Latinoamericano para Arroz de Riego;
IICA = Instituto Interamericano de Cooperación para la Agricultura; LOTASSSA = Lotus Adaptation and Sustainability in
South America; Mercosur = Mercado Común del Sur, Mercado Comun do Sul; PROCISUR = Programa Cooperativo para el
Desarrollo Tecnológico Agroalimentario y Agroindustrial del Cono Sur.
The entry into biosciences research usually begins by has been controversial. Should it be based in a separate
developing capacity in a central location to serve a center, faculty of science, or faculty of agriculture?
number of clients, such as university scientists, com- The business models for sustainable research in
modity breeding programs, and often nonagricultural biotechnology differ in universities and national
research as well. Major indivisibilities in laboratory agricultural research institutes, and given scale con-
and computing facilities for genomic research, for siderations, stable funding arrangements will be a
example, mean that there are significant economies of determining factor. BecA estimates that it will have to
scale in creating a hub. Over time, and with the falling generate at least 50 percent of its funds from hosted
cost of more applied operations, decentralized capac- research projects to sustain its capacity. Growth will
ity is developed. One new platform for biosciences, the come through an expansion of target countries,
BecA-Hub (Biosciences Eastern and Central Africa), broadening the scope of activities, a good synergy of
benefited from major support from the Canadian African and international partners, and incubation/
International Development Agency to upgrade facili- innovation projects.
ties at the International Livestock Research Institute BecA currently supports staff from 6 international
(ILRI) in conjunction with the New Partnership for centers, has helped 60 MSc and PhD students advance
Africa’s Development (NEPAD). their research, and has hosted 41 projects (17 in crops
Located at ILRI’s Nairobi campus, BecA is one of and 24 in livestock). A NEPAD “BecANet” provides
three regional initiatives championed by NEPAD. The resources for national agricultural research systems
hub’s sustainability depends on whether it builds on its and university scientists to use these resources to sup-
role as an international facility, serves its clients in East port their own priorities. In West Africa, the Alliance
and Central Africa, and generates strong international for a Green Revolution in Africa supports the West
collaborative research program on animal disease. The Africa Center for Crop Improvement, a regional post-
location of a regional hub at an international research graduate training program at the University of Ghana,
center brings many logistical and administrative facil- Legon. The center, which benefits from a faculty insti-
ities in addition to economies of scale and scope. tute for biosciences and backstopping from Cornell
From the earliest days of biotechnology in devel- University, has attracted scientists from francophone
oped countries, the location of a biotechnology facility countries as well.
This TN discusses two central questions. First, how can elements are needed to ensure the necessary concentration,
investments in regional programs and institutions better connectivity, and continuity for a self-sustaining regional
strengthen national AISs? Second, how can they support the innovation system to emerge:
emergence of a regional AIS? This TN argues that if more
complex systems are to emerge, they will require (1) compat- ■ Support consensus on a regional vision and agreement.
ible organizations and institutions that can bond, (2) a timely The most important element is that participants in a
and adequate concentration of resources, and (3) a sustained regional arrangement share a vision of mutual benefit
infusion of resources over a sufficient period (Elliott 2010). and make a formal commitment. Support for this dia-
The agenda, science, and methods are changing rapidly at all logue and agreement on vision, research priorities, and
levels, and it is difficult to design organizations to deal with a cost and benefit sharing are needed prior to concrete
moving target. Spontaneous self-organization will not be investments. A mutual accountability framework must
sufficient for a strong regional AIS to emerge. be developed and provide incentives for all partners to
deliver on their commitments.8
■ Select a committed host organization. A regional
INVESTMENT NEEDED
research system must be led by a committed and capable
While there is no model for a regional research system that host institution, preferably the most effective research
is well integrated within an AIS, a few main investment organization in the region. The host institution needs a
MODULE 4: THEMATIC NOTE 3: REGIONAL RESEARCH IN AN AGRICULTURAL INNOVATION SYSTEM FRAMEWORK 299
business model that sustains the effort through a POTENTIAL BENEFITS
national core commitment, research grants, service fees,
Regional research efforts may create different types of ben-
and projects. In other words, the host organization
efits. Often such efforts are designed to gain efficiency in the
should have a sustainable research program that ensures
production of research for development in a given priority
its continued ability to serve a regional demand.
area, primarily through economies of scale and scope.
■ Support national partners. A successful regional
Participants can share costs for infrastructure, software,
research system requires sufficient national capacity for
laboratory equipment, and highly specialized scientists, as
research, dissemination, and coordination (national and
in BecA (box 4.16). Regional efforts also put institutional
regional) to avoid competition and duplication and to
arrangements into place that facilitate the use of research
reach synergies. Support is needed to address the human
results. Their financial sustainability requires special atten-
resource gaps, perhaps by investing in MSc programs at
tion, however.
the national and regional levels to give government,
NGOs, and aid organizations the staff they require to
participate in the initiative. POLICY ISSUES
■ Design a governance structure. The regional initiative
requires a board with representatives from participat- The policy issues that are particularly relevant to whether
ing countries, including financial decision makers, and how regional research might contribute to the emer-
political allies that ensure continuity, and other relevant gence of a regional innovation system are discussed in the
stakeholders. The board is expected to recruit strong following points. Perhaps the central issue is the tension
leadership, ensure a strategy is in place, oversee its between national and regional priorities and the consider-
implementation, and support the regional mission. Gov- able challenges of collective action at a regional level.
ernance structures have to be capable of changing strate-
gies and adapting governance itself to new conditions. ■ Achieving balanced growth of innovation system com-
■ Base a strong secretariat in the host organization. A sec- ponents through regional collaboration. Coordination
retariat performs the day-to-day administrative functions among NARIs, universities, and technology dissemina-
of a regional network, platform, or hub as mandated. The tion is often weak or even resisted at the national level.
secretariat must have staff and skills to support efforts to The source of this problem may be unbalanced growth
meet clients’ needs, generate and communicate new among the components, their sequential development,
information to members, and raise funds. different scales of operation, and different bases for
■ Maintain regional funding authority. A regional organization (agroecological, political administrative, or
research arrangement requires a regional funding centralized for economies of scope and scale). Regional
authority to maintain its scale of operations and com- facilities may allow a national knowledge system to
mitment to a regional role. National commitment and operate at a higher scale by avoiding the need for large
support from the host government are required. Reliance fixed investments in one or more sectors through
on donor funding is not a sustainable solution.9 regional borrowing.
■ Develop procedures for selecting, monitoring, and eval- ■ Partnerships in producing regional public goods.
uating regional research projects. Clear and transparent National research systems, subregional organizations,
procedures, taking notice of stakeholders’ concerns, are and international agricultural research centers all con-
needed to ensure both quality and relevance of research. tribute in complementary ways to the production of
Such procedures would permit the balanced articulation public goods. Pingali (2010) warns that an unintended
of demand, base the selection and approval of projects consequence of the CGIAR research centers’ shift toward
on strong and independent scientific evaluations, specify product adaptation and dissemination relative to inno-
the financial and reporting requirements, and outline vation and product development is a potential break in
requirements for objective ex ante evaluations, program the R&D pipeline that supplies public good research and
monitoring, and ex post evaluations. See module 5, TN 2 technologies to raise agricultural productivity in devel-
on innovation funds for details on sound procedures. oping countries. Improved partnership is the elusive
solution to issues of competition and crowding out, but
Box 4.17 presents an example of the challenges presented it requires behavioral and institutional change (Horton,
in developing a regional research system. Prain, and Thiele 2009).
The Regional Universities Forum in Africa (RUFORUM), it meet the needs of its 25 university member-owners?
initiated in 2004, grew out of the Rockefeller Foundation Second, should it consolidate activities at a meaningful
project (FORUM) to help 5 countries and 10 universities subregional scale, with tangible results for participating
specialize around particular themes, create university countries, or should it follow donor pressure to expand
centers of excellence, and train graduate students and assume additional functions? Third, how can it
from participating countries. Its challenge was “to build manage the sustainable addition of functions as it
a national and regional research for development moves from network to advocacy platform to possibly
(R4D) innovation system based on partnerships and dia- more intensive service functions?
logue between all actors, impact-oriented and well- RUFORUM’s Business Plan 2011–2016 describes
coordinated, where universities are an integral part.” how balanced growth would allow it to take on an
RUFORUM is recognized as an international nongovern- expanded function as a continental forum. Documen-
mental organization and is supported by the European tation of lessons from the “RUFORUM model” in
Community and the Bill and Melinda Gates Foundation. eastern and southern Africa would create legitimacy
Experience to date. RUFORUM planned to roll out and credibility beyond its current region. Continental
seven regional thematic programs, each assigned to a action would require both changes in governance and
lead university, and train more than 800 MSc and full cost recovery by new initiatives to avoid competi-
150 PhD students by 2013. Students from participat- tion with delivering RUFORUM’s flagship MSc pro-
ing countries would receive local tuition and living grams, which serve national and regional AIS needs
allowances. The attractiveness of the concept (and the directly. As seen with the effort to create a hub for the
absence of another body with a similar mandate) biosciences in East and Central Africa (box 4.16), sus-
caused membership to grow from the original 12 to 25 tainable financing for a platform or hub depends on
universities in Eastern and Southern Africa alone. In many things: a subsidy from the host country, contin-
2010 a strategic reflection meeting identified the uous donor commitment, or integration of national
challenging trade-off between a sharp focus and an and regional activities through products and services.
expansion in scope and scale, including a proposal for Regional efforts often founder when the national host
RUFORUM to expand to West Africa. A ministerial cannot or will not continue its regional role, so select-
Conference on Higher Education in Agriculture called ing the host for a center of excellence is a critical
for universities to (1) create a pan-African university, decision. Many major universities were created with
(2) contribute fully to NEPAD-CAADP processes,a support from Ford and Rockefeller Foundations and
(3) link to the private sector as a potential source of bilateral aid programs. A handful emerged to play
funding and internships, (4) engage in policy formula- sustained regional roles, whereas others’ regional
tion and implementation, and (5) coordinate with presence diminished in the wake of purely national
ministries in the national innovation system. Another decisions and crises or a host institution’s inability to
resolution that emphasized the AIS was to include sustain regional commitments beyond donor fund-
investment in agricultural higher education within the ing.b The Conference on Higher Education in Agri-
NEPAD-CAADP 10 percent budget allocation (pro- culture pushed for a continental forum rather than a
vided it did not dilute the commitment to agriculture). consolidation of action at the subregional level or a
Lessons. RUFORUM faces at least three large definition of subregional communities that are natu-
challenges arising from its initial success. First, how can ral partners.
MODULE 4: THEMATIC NOTE 3: REGIONAL RESEARCH IN AN AGRICULTURAL INNOVATION SYSTEM FRAMEWORK 301
■ Sustainable funding. A corollary of the previous point creating these institutions rather than designating coor-
is that R&D mandates have to come from funding bod- dinators is justified.
ies that can commit to sustained funding of regional
activities. Regional centers of excellence will be sustain-
LESSONS LEARNED AND GUIDANCE
able only if it is national policy to play a regional role
FOR FUTURE INVESTMENTS
and maintain that role through resources from the
government or institute. It helps if the governance The long experience with regional research efforts offers a
mechanism for agricultural research includes people considerable number of lessons and other guidance. The
with access to decision makers if not the decision mak- issues with the greatest relevance for regional research
ers themselves. Regional initiatives must be seen to gen- and innovation systems are discussed in the sections that
erate tangible benefits with clear value added to follow.
national efforts.
■ Shared regional goals and a policy-making frame-
High-level policy support
work. Regional policies presume there must be some
regional policy maker with the power to fund regional High-level policy frameworks such as the NEPAD-CAADP
challenges and organize regional collective action. The commitments are important if they succeed in raising real
current overlapping of regional economic communities financial contributions by national governments. Such
and lack of coherence with R&D structures needs to be high-level organizations have not previously been successful
resolved. Regional agricultural R&D priorities must be in implementing scientific programs, but if they raise
embedded in the strategic agendas of regional eco- national commitments or create frameworks for regional
nomic communities. economic communities to finance regional collective action,
■ Subsidiarity and equity considerations. Regional collec- they play their role.
tive action to deal with inequality, gender, and social
unrest across national borders is extremely difficult to
organize. Border populations are sometimes marginal- Appropriate level of coordination
ized within their own country or even in opposition to Ensuring that regional research programs integrate with the
the central government,10 so transboundary problems national AIS is a matter of how well the national system is
sometimes may not attract central policy makers’ con- integrated with its own subregional organization or benefits
cern. Gender mainstreaming is a widely accepted concept from alternative mechanisms. Contracts, networks, strategic
at the regional level but can be implemented only at the alliances, partnerships, and mergers are all ways of achiev-
national level. Finally, regional collective action takes ing coordination. Researchers can coordinate around tasks,
place in an environment of overlapping mandates and problems, target communities, commodities, and scientific
resource competition; the result is that sometimes a challenges. Their linkages with the farmers, the private sec-
national priority is underfunded because it is perceived tor, and advisory services will differ among activities and
as something that others will fund. countries. For this reason, innovation usually emerges
■ Policies for international markets. Whether regional through self-organization. Subregional organizations can
research contributes to the emergence of a regional design mechanisms to coordinate the activities of interna-
innovation system is linked to the development of the tional centers through regional programs but wisely do not
wider environment: regional economic communities, fight activities that escape their control.11 Attempts to
removal of trade barriers, and mechanisms to compen- impose “coordination” run the risk of imposing costs that
sate the losers for their participation in the wider exceed efficiency and relevance gains.
system. Seed policy harmonization, common standards,
and certification requirements have fostered seed indus-
Particular outcomes will be context-specific
tries within regions. Regional seed associations emerge
and often path-dependent
as seed markets grow; some national companies become
international; and many small companies flourish by The examples presented here describe a diversity of
finding a niche in areas where multinationals have little approaches designed to deal with issues of centralization
interest. Policies and institutions that widen regional and decentralization, governance and ownership of a pro-
markets can facilitate these developments. Investment in gram, political and financial sustainability, responsiveness
MODULE 4: THEMATIC NOTE 3: REGIONAL RESEARCH IN AN AGRICULTURAL INNOVATION SYSTEM FRAMEWORK 303
Table 4.4 Six Criteria for Assessing Prospective Regional Research Initiatives for Their Contributions to
Regional and National Innovation
Criteria and indicators Interpretation or specific examples
(1) Fit with regional vision, context, and priorities
Shared vision at national and regional levels – Do countries have the same perception of potential gains and losses from an initiative?
– Is it a shared challenge with the same sense of priority or urgency?
Potential for technical spillovers and spillins – How much of the recommendation domain is found in each member country?
– How much of the targeted area is found in each country?
Economic impact and incentives for – Are spillovers beyond the research area highly likely to occur without frictions?
regional action – Do mechanisms exist to share benefits of regional investments?
Evidence that policies, standards, and regulations – Is there clear analysis of spatial distribution of benefits along the value chain?
encourage spillovers and spillin benefits – Do regulations favor cross-border investment in markets, transportation, and freedom
of trade?
Components of innovation system are evolving in – Are institutional strategies addressing new issues such as climate change, adaptation
compatible way and in line with new challenges needs, water scarcity?
– Do educational institutions produce future researchers or competent technical staff?
Economies of scale can be gained in research – Can a centralized capacity draw on a wide testing network for rapid feedback on
from lumpy capital, specialized software, adapted or adaptable cultivars/results?
scarce human resources – Does the hub have a sustainable program of research that ensures its continued ability
to serve a regional demand?
Economies of scope can be realized from locating – Is there a mixture of disciplines and a balance of strategic and applied research to
the program in multi-interest center or cluster serve multiple commodities, themes, or functional groups?
Research taps into global knowledge cost-effectively – Do research contracts and partnership arrangements ensure cost-effective access to
global science and technology?
– What incentives linked to location, special skills, or environment attract foreign
partners?
– Can strong ICT compensate for size?
(3) Quality and relevance of science
Project approval based on strong and independent – Are program and project review subject to formal evaluation according to agreed
scientific evaluation criteria and processes?
– Do governance and management respect scientific evaluation?
Mechanism for project approval of projects includes – How are the private sector’s and farmers’ concerns included in analysis, consultation,
key stakeholder concerns and decision-making processes?
– Do processes help build participation and demand by key stakeholders?
The balance between long-term strategic and – Is scientific quality and feasibility ensured by peer review?
short-term problem-solving research is appropriate – Is relevance ensured by governance mechanisms or financial support by client?
Access to advanced breeding, biotechnology, or – How do regional platforms remain open to partners across public, private, and NGO
analytic techniques helps problem-solving research sectors?
– What internships, training awards, and fee structures make advanced facilities accessible
to downstream demand?
Mechanisms for objective ex ante evaluation, program – Does a functional M&E system provide objective evidence of performance against
monitoring, and ex post evaluation development objectives at the national level?
– What peer review from regional experts exists for regional program?
– What mechanism exists for subregional partners to ensure performance?
(4) Contribution to national capacity and functioning of national AIS
Regional initiative provides support for – Does regional program build national capacity in sustainable way?
long-term staff development at national level – How does regional program reinforce gender mainstreaming?
– Do standards for regional awards raise the standard for national research?
– How does program reduce net regional brain drain?
Regional program enhances ability of national – Does regional research meet a national as well as regional need?
research-for-development institutions to generate – Do regional projects enhance the reputation and credibility of national scientists?
political and financial sustainability – Do regional projects connect with the national agricultural innovation system or do
they work only on regional and global public goods?
Governance structure of initiative brings in financial – Are relevant ministries represented in governance of the initiative if necessary to
decision makers or political allies that ensure ensure political and financial support?
continuity – How are key stakeholders maintained as allies of the initiative?
– How are nongovernmental regional stakeholders included in the governance?
Regional hierarchy supportive of initiative? – To what degree can a regional innovation system emerge without a hierarchical
structure at the regional level?
– What arrangements by regional economic communities are needed to ensure a
favorable environment for uptake of research results?
Source: Author.
Note: The criteria in this table were identified inductively by the author from experience with strengthening agricultural research systems and used
deductively in applying an AIS perspective to regional research arrangements that are currently being initiated.
suppliers of knowledge and technology. Not all countries in Contribution to national capacity. National capacity is
a regional organization will have the same priorities, and often the scarcest factor. A regional program with large and
how priorities are funded is important enough to be a small members may help to build capacity in the smaller
separate criterion. Investment in strong M&E is necessary to units, if only to enable them to play their role in a regional
gain political support. The success stories of CGIAR effort. It is important to identify whether regional efforts
research centers usually focus on two things: either genetic compete among themselves or compete with the national
breakthroughs leading to increased productivity or programs for scarce scientific capacity and whether there is
successful control of plant diseases and pests (especially sustainable national support for this area of research. The
cassava pests). Better methodologies are needed to evaluate politics of higher education make it intensely national.
returns to natural resource management to ensure proper Investment in MSc programs at the national and regional
attention to this aspect of research at the national level. level is needed to give government, NGOs, and aid
MODULE 4: THEMATIC NOTE 3: REGIONAL RESEARCH IN AN AGRICULTURAL INNOVATION SYSTEM FRAMEWORK 305
organizations the staff they require (as discussed in box 4.17 Political and financial sustainability. Sustainability
on RUFORUM). of regional arrangements depends on the incentives for
participation by all parties. A regional role allows a host
Facilitation of collective action. Collective action—in country to move to a higher level of complexity in its sci-
the very specific sense that parties assemble to address shared ence. The collapse of regional organizations is precipitated
challenges that they would not or could not address alone— most often by national decisions by a member country that
should increase. It may often address transboundary free rides, shirks responsibility, becomes unable to carry out
problems of a regional public good nature, such as regional commitments to the collective action, or determines it is not
economic policies, transborder watersheds, diseases and sharing equitably in the benefits.
pests, and postconflict/postdisaster rehabilitation. At some These problems need to be addressed by governance and
stage, an innovation system may begin to emerge from the financing mechanisms, methods of ensuring access to and
interaction of components and reach a point where sharing of benefits, and some formal policing of commit-
components become aware of their connectedness and begin ments. Sustainable regional organizations will require a
to coordinate through information flows, markets, and new higher-order political and financial mechanism committed
organizations. The system may become “emergent” and to a regional strategy. Self-sustaining regional centers can
create new complexity. Various governments and donor emerge when a host-country institution accepts a regional
programs may consciously attempt to strengthen linkages or role and has a business model that sustains it through a
create human and institutional capacities to overcome national core commitment, research grants, service fees, and
binding constraints that exist at a given time, but the system projects. A mutual accountability framework that provides
may become conscious and self-correcting. A sequence of incentives for all partners to deliver on their commitments
many small investments leading towards collaboration, is necessary.
collective action, and stepwise integration is needed. In a Box 4.18 describes the continuing challenges of sub-
changing environment it is unlikely that a fully designed regional organizations in sub-Saharan Africa to secure
system can be imposed from above. funding.
Box 4.18 Subregional Organizations in Sub-Saharan Africa: Challenges with Secure Funding
and Collective Action
In Africa, the three subregional organizations— International Development or the World Bank. Free-
ASARECA, CORAF/WECARD, and SADC-FANR—are dom from regional political direction facilitated
quite different.a They shared a common goal of increas- research collaboration, even among countries whose
ing African ownership and control of research funded unstable borders provoked political conflict, but the
by donors and the centers of the Consultative Group on absence of political coverage limited financial sustain-
International Agricultural Research (CGIAR). Their ability and commitment to action. In 2007 ASARECA
separate evolution reflects the composition of their ini- created a mixed board (representatives of donors,
tial memberships, the role of donors under the Special national research institutes, and stakeholders), dis-
Program for African Agricultural Research (SPAAR), banded its networks, and consolidated their work into
and path dependency imposed by historical structures seven programs with donor funding through a trust
and objectives. Different SPAAR donors had different fund held in the World Bank. The national agricultural
motivations for creating subregional organizations, research institutes have not divided up management of
and the original memberships reflected their interest the new programs, which remain centralized in
and funding. Entebbe for administrative rather than scientific rea-
ASARECA. ASARECA was an association of 10 sons. Unlike Latin America, in sub-Saharan Africa no
directors of national agricultural research institutes; its single regional economic community is present to cre-
geographic spread was defined by countries included in ate the environment for wider market integration and
the regional offices of the United States Agency for policy harmonization.
(Box continues on the following page)
CORAF/WECARD. In West and Central Africa, the ment in Southern Africa (CCARDESA) was estab-
SPAAR strategy of base centers and regional programs lished in 2010.
was a familiar model, especially in the Francophone Lessons from Sub-Saharan African subregional
countries. The need to bridge Anglophone/Franco- organizations. No subregional organization has
phone structures involved integration on a North/South achieved significant financial support from its member
(interior/coastal country) basis within ECOWAS. governments. Political fragmentation, overlapping
Southern Africa. The Southern African Center for regional economic communities, and membership in
Cooperation in Agricultural Research and Training multiple regional units has prevented the subregional
(SACCAR), an autonomous center composed of organizations from taking on significant collective
frontline states, brought the CGIAR’s regional pro- challenges such as climate change, postconflict rehabil-
grams under a mixed board of national research insti- itation, and development of regional markets. It would
tute directors, university representatives, and a donor be a true example of “collective action” if the gov-
committee. Donors coordinated their efforts under ernments in each region had assumed responsibility
Cooperation for Development in Africa, subsumed for funding. Through their scientific networks, how-
under SPAAR when the World Bank became the dom- ever, the subregional organizations have successfully
inant donor to research. With the end of apartheid addressed some transboundary emergencies and chal-
and opening of South Africa, the frontline states lenges. For example, ASARECA helped Burundi
remained wary of SPAAR’s message of strong “base overcome a banana wilt attack with replacement culti-
centers” and “regional programs,” which implied cen- vars. The cultivars were developed and maintained in
tralization around a scientifically dominant South Uganda and multiplied with help from Kenya and
Africa. When SACCAR disbanded in 2001, its func- Uganda under reallocated funding from regional
tions were brought under a directorate of the SADC donors. Like PROCISUR, their next step (and an
Secretariat. It has taken almost ten years for a new sub- essential element in regional innovation) is to
regional research organization, similar to ASARECA strengthen technologies, institutional linkages, and
and CORAF, to replace SACCAR. The Center for policies of the regional economic communities that
Coordination of Agricultural Research and Develop- integrate markets.
Source: Author.
a. ASARECA = Association for Strengthening Agricultural Research in Eastern and Central Africa. CORAF/WECARD = Con-
seil Ouest et Centre Africain pour la Recherche et le Développement Agricoles (West and Central African Council for Agricul-
tural Research and Development). SADC-FANR = Southern Africa Development Community–Food, Agriculture, and Natural
Resources.
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T H E M AT I C N O T E 4
308
Table 4.5 Key Approaches or Brands Fitting under the Codesign Umbrella
Approach Key references Key features and focus Examples
Participatory technology or Veldhuizen, Waters-Bayer, and Systematized steps and methods to develop PROLINNOVA program
innovation development de Zeeuw (1997); Sanginga et al. production or natural resource management (www.prolinnova.net)
(PTD/PID) (2008) innovations, with a strong focus on local people,
knowledge, and resources
Participatory action-learning Liu (1997); Almekinders, Negotiating common goals and setups, combining ASOSID (box 4.20)b
and action-research (PAR) Beukema, and Tromp (2009); production of knowledge and problem-solving
Hocdé et al. (2009); Faure et al.
(2010)
Participatory market Bernet et al. (2006, 2008) Add value by creating interactions and coordination Papa Andina Box 4.21
chain approach among stakeholders along an existing or
new value chain
Companion modeling Bousquet, Trébuil, and Cerf (2005); Combining and representing different types of New irrigation
(ComMod)a Béguin and Cerf (2009) knowledge and exploring scenarios for collective arrangements in
action in natural resource management northern Thailand
Source: Author.
a. See http://cormas.cirad.fr/ComMod/en/index.htm.
b. Asociación para la Agricultura Sostenible en base a Siembra Directa (Association for Sustainable Agriculture Based on Direct Seeding).
In codesign, the concurrent and explicit application of ■ At least some of the concerned stakeholders have prior
these four principles contrasts strongly with more conven- experience with the skills necessary for the negotiation,
tional R&D and other so-called participatory or collabora- facilitation, and coordination of multistakeholder efforts.
tive approaches, even though the latter may appear to share ■ Codesign requires a positive, open attitude, motivation,
some characteristics of codesign. and sufficient degrees of freedom among individuals and
While this module treats general issues related to the role institutions toward multistakeholder collaboration. This
of research in AIS, this TN focuses on how research may condition implies, among other things, that stakeholders
engage in AIS in practice, drawing from recent experience can recognize the legitimacy of all other stakeholders in
with codesign approaches to improve agricultural produc- being part of the process, an incentive structure com-
tivity, develop market chains, and manage natural resources patible with codesign exists, and participants have the
in developing countries. ability to operate outside the established rules and para-
digms within each institution.
INVESTMENT NEEDED
Conducting an effective codesign innovation process typ-
Ideally, codesign approaches should be applied only when ically involves organizing three main interlinked and over-
the context, the problems to be solved, and the stakeholders lapping phases: (1) exploratory phase, (2) implementation
are well suited to such approaches (table 4.6). Usually the phase, and (3) a dissemination and exit phase. Investing
circumstances are right when one or several of the following heavily in capacity-building of all stakeholders involved,
conditions are met: with regard to specific thematic issues as well as the princi-
ples and approach of codesign, will be necessary (Triomphe
■ Concerned stakeholders face changes in their socioeco- and Hocdé 2010). Box 4.19 summarizes the associated costs
nomic or biophysical environment, or problems that and investments.
typically cannot be solved by one of them alone, because
of the complexity and/or scale involved. Examples
Exploratory phase
include managing a dwindling common natural resource
or adjusting to new policies or to changes in how markets Three goals may be pursued: (1) diagnosing the situation
function. faced by stakeholders; (2) identifying and characterizing con-
■ A shared understanding of the problems and their solu- cerned stakeholders, their demands, and needs; and (3) nego-
tions can be reached. tiating the overall goals of the codesign process and the
■ Current scientific and technical knowledge and pre- related institutional and operational mechanisms and
designed solutions to address the issues at hand are inad- arrangements, all of which influence the effective imple-
equate or inaccessible. mentation of codesign activities during the next phase.
MODULE 4: THEMATIC NOTE 4: CODESIGNING INNOVATIONS: HOW CAN RESEARCH ENGAGE WITH MULTIPLE STAKEHOLDERS? 309
Table 4.6 Examples of Problems, Corresponding Potential Innovations, and Key Potential Components of a
Codesign Approach Adapted to Address Those Problems
Examples of components of an adapted
Types of problems or issues Types of innovations codesign approach
– Reducing costs or increasing profitability – New cropping or farming systems – Joint experimentation
of cropping or farming systems, making – New arrangements and institutions – Creation of multistakeholder alliances and platforms
farming more environmentally friendly – Multiscale networking
– Unequal access to irrigation among different – New irrigation or grazing techniques – Joint experimentation
types of farmers in a given watershed – New rules or institutions at – Role-playing games
– Conflicts for common resource use community watershed level – Participatory and simulation modeling
(such as pastureland)
– Reducing deforestation – New farming systems – Territorial multistakeholder committees
– Managing erosion and natural resources – New land uses and new policies – Participatory land use and policy planning
(such as biodiversity) and/or regulations for land use – Creation of multistakeholder alliances,
platforms, and similar mechanisms
– Responding to farmers’ and consumers’ – New germplasm – Participatory plant breeding
needs related to crop and food quality – Geographical indications
– Limited access of poor farmers to – Infrastructure development – Approaches for pro-poor market chain innovation
high-value markets – New food processing techniques (such as development of geographical indications)
– Farmer organization for marketing – Supply chain coordination
– Public-private partnerships
Source: Author.
Codesign approaches require that proper funding (or 7. The establishment and implementation of a formal,
cofunding) be made available for a number of specific rigorous, and participatory monitoring and evalua-
expenses, especially: tion system, which is necessary to provide feedback
to guide the direction and content of the codesign
1. Holding all necessary initial negotiations among process.
concerned stakeholders: travel and meetings. 8. Sufficient funding should be made available to doc-
2. Enlisting researchers from several disciplines ument the codesign process and its major outcomes
(biophysical and social sciences), as required. in diverse media, from classical scientific and tech-
3. Ensuring sufficient staff involvement from key nical publications to videos, Internet-based prod-
stakeholders, and funding the time of those who are ucts, and policy briefs. There should be as many for-
not in a position to support themselves. mats and products as types of stakeholders involved
4. Expenses related to the proper functioning of multi- or concerned by the problem.
stakeholder coordination instruments and mecha-
nisms, such as multistakeholder platforms, steering Other costs typically associated with a codesign
committees, and facilitation costs, without forget- approach may not differ much from the costs of other
ting the funding needed for corresponding commu- approaches: the cost of running a multisite, on-farm
nications strategies. experimentation scheme, costs of a large-scale dissem-
5. Resources to hire a full-time or at least part-time ination strategy, costs of specific research activities,
facilitator or innovation broker (these resources
and so forth. It may be possible to share some of the
might be especially critical).
costs among the partners, and as encouraging results
6. A multifaceted capacity-building program directed
at strengthening the capacities and skills of each and are generated, it may be possible to leverage further
every stakeholder on a variety of topics over the investment.
duration of the codesign process.
Source: Triomphe and Hocdé 2010.
MODULE 4: THEMATIC NOTE 4: CODESIGNING INNOVATIONS: HOW CAN RESEARCH ENGAGE WITH MULTIPLE STAKEHOLDERS? 311
■ Expanding the codesign/innovation process to new Some stakeholders might not wish to collaborate further;
areas and new stakeholder groups, or institutionalizing they may view the costs and time as too high or too uncer-
the corresponding approaches within existing or new tain. What is important under such circumstances is to min-
institutions. imize the potential long-term damage that an unmanaged
failure (usually in the form of a conflict or crisis) might
At times, a codesign approach may also need to be cause to future collaboration.
terminated before a satisfactory outcome has been achieved, For examples of codesign processes in Mexico and the
because conditions for continuing are no longer favorable. Andean Region, see boxes 4.20 and 4.21.
How it started: identifying a common problem and a eted conservation agriculture program in the Bajío. It
potential solution. In early 2000, a small group of inter- soon became apparent that such a program would be
national researchers met with representatives from the complex, involving numerous diagnostic activities, tri-
private sector and the government of Guanajuato State als and demonstrations, the introduction of new
in Central Mexico. They discussed the opportunities equipment, training of technicians and farmers, and
and challenges of a joint effort to develop and diffuse monitoring and evaluation, among other activities. In
conservation agriculture in the Bajío (lowland) region, 2002, all stakeholders agreed that the rather informal
where a crisis in environmental sustainability was coordination started in 2000 had to make way for a
underway. Thousands of mechanized smallholders pro- more formal one in the shape of a nonprofit associa-
duced high-yielding cereals (wheat, barley, maize, and tion, ASOSID AC.a The key stakeholders were the
sorghum) in the Bajío using large amounts of fertilizer founding members of ASOSID, which became the rec-
and irrigation water. Production costs had soared, mak- ognized agency for implementing the program.
ing the profitability of grain production uncertain. The role of research and the results obtained.
Competition for scarce irrigation water was increasingly Throughout the process, research played key roles.
fierce. Conservation agriculture, internationally her- Unusually, it was a major innovation champion in the
alded for its potential to reduce costs and save water, was initial stages, assuming the role of innovation broker by
seen as a relevant solution. Conservation agriculture enrolling key stakeholders and tirelessly negotiating
had been successfully tested for years in the region, but (bilaterally, multilaterally) the common objectives and
residual technical problems and poor coordination approach. At the same time, it produced technical, eco-
among stakeholders prevented its significant adoption. nomic, and social knowledge about the situation, devel-
Launching the codesign process. Researchers did oped new cropping systems in close collaboration with
not add to the pile of experiments showing the poten- farmer innovators, and helped shape the enabling envi-
tial or drawbacks of conservation agriculture. Nor did ronment to establish ASOSID. It strengthened stakehold-
they develop a participatory scheme to fine-tune and ers’ capacity—an investment that continues. Aside from
test even more locally adapted conservation agricul- the creation of ASOSID (a major institutional innova-
ture with a handful of farmers. Instead, research broke tion), key results included the increasingly wide adoption
away from well-established paradigms. A flurry of of conservation agriculture and related water-saving
negotiations followed with key local or national stake- techniques. The capacity and reach of farmers’ local and
holders in the Bajío, including farmer-managed local regional water-user associations expanded. The associa-
and regional water associations, the state extension tions decided to venture beyond their original mandate to
agency, high-level policy makers from the state gov- manage irrigation water and gradually got involved in
ernment, the private sector (input providers, no-till advisory services and alternative crop marketing.
equipment manufacturers), national research, and Although it has gone through several stages, ASOSID is at
funding agencies. A major objective was to establish a work ten years later, long after international research
means of coordinating and implementing a multifac- ceased to be a major force in its agenda and activities.
Source: Author, based on Triomphe, Hocdé, and Chia 2006 and www.asosid.com.
a. Asociación para la Agricultura Sostenible en base a Siembra Directa (Association for Sustainable Agriculture Based on Direct
Seeding).
Papa Andina is a regional partnership funded by the fresh potatoes for the wholesale market, a new native
Swiss Agency for Development and Cooperation and potato chip product and brand, and the first brand of
other donors. It involves the International Potato Cen- high-quality native potatoes to be marketed in
ter (CIP) and national agricultural research organiza- Peruvian supermarkets. Technological innovations
tions in Bolivia, Ecuador, and Peru. Since its inception improved pest and disease management and the selec-
in 1998, Papa Andina has shifted its focus from imple- tion of harvested produce. A national platform,
menting a regional research agenda to developing a CAPAC-Peru,b was established to promote the market-
regional learning agenda and strengthening national ing of quality potato products and innovation, in
capacities for innovation. which local actors are gradually taking more responsi-
Organizational interface. Papa Andina’s participa- bility as their capacity and trust increases. CAPAC
tory market chain approach (PMCA) features facili- helped organize small-scale farmers to supply potatoes
tated, face-to-face meetings that involve diverse market meeting the more demanding market requirements.
chain actors, researchers, and other agricultural service When a multinational entered the market, Papa And-
providers in exploring options for market chain innova- ina began to work on corporate social responsibility to
tion. The facilitating R&D organization then conducts balance corporate interests with the interests of com-
or arranges for R&D on specific innovations. A project munity suppliers and the environment. Other indirect
team based at CIP (with external funding) has contin- results include the popularization of native potatoes
ued to facilitate interactions between researchers, mar- in Peru’s urban cuisine and the establishment of
ket actors, and decision makers at various policy levels Peru’s annual National Potato Day, which caused the
(in theory this task should eventually pass to the market United Nations to declare 2008 the International Year
actors). This group sees itself as an innovation broker of the Potato.
and plays a lead role in a Learning Alliance that has been
established to promote exchanges among different Key lessons
groups working on market chain innovation and devel-
opment in Peru. Full-time facilitators and innovation ■ Approaches such as PMCA require substantial time
brokers reduce some of the transaction costs and coor- and resources for capacity development if they are
dination issues related to partnerships and networks. to strengthen linkages between researchers, eco-
Financial sustainability beyond donor funding remains nomic actors, and policy makers.
controversial and problematic for Papa Andina, both in ■ Traditional evaluation approaches based on objec-
CIP and in national research organizations. tives and logical frameworks do not work for
Outcomes. PMCA and stakeholder platforms have innovation processes and innovation brokers’ per-
achieved higher prices for native products, increased formance. The processes and tasks involved are too
farmers’ revenues, developed more stable markets for complex and results often take some time to be
producers of native potatoes (partly through successful apparent.
branding and marketing), and increased farmer’s self- ■ A pro-poor focus is vital to market chain approaches
esteem. In Bolivia, new potato products sold to super- and innovation networks, which run the risk of ben-
markets enable farmers to receive 30–40 percent higher efiting those who are better able to take advantage of
prices than they received in traditional markets. The new market opportunities and innovations. In Peru,
innovation network in Ecuador (Plataforma) enabled native potato varieties have evolved from “poor peo-
farmers to raise yields by 33 percent, improve input- ples’ food” to a source of national pride, and the
output ratios by 20 percent, and increase gross margins main beneficiaries have been the smallholders from
per hectare fourfold.a the high Andes who preserved and grew them over
New products and markets. Other key outcomes thousands of years.
include the creation of a new brand of high-quality
MODULE 4: THEMATIC NOTE 4: CODESIGNING INNOVATIONS: HOW CAN RESEARCH ENGAGE WITH MULTIPLE STAKEHOLDERS? 313
POTENTIAL BENEFITS for different stakeholders’ livelihoods or their respective
places and influence in the institutional and political land-
Benefits of codesign are diverse and depend greatly on the
scape. In some cases, codesign empowers the weakest stake-
specific goals of each codesign experience. Generally speak-
holders, but empowerment is not automatic; it may be
ing, benefits include a mix of:
necessary to overcome tensions arising from the resistance
and inertia of traditionally powerful stakeholders.
■ More suitable and diverse innovations that are more
Codesign may affect the strategic positioning of research
appropriate, easier to adopt, and developed more rapidly
and its role in the innovation landscape. Research may
than innovations generated through conventional
decide it is legitimate to go beyond its traditional role as a
approaches.
producer of neutral knowledge and invest explicitly in such
■ Involved stakeholders, whose individual and collective
areas as innovation brokering or documenting stakehold-
capacities for action, research, and problem-solving are
ers’ positions and rationales in conflicts over resource
strengthened. If attention has been duly paid to the
management.
weakest stakeholders, their technical, social, and at times
Public research organizations may also need to become
political endeavors may be empowered.
better acquainted with innovation development initiatives
■ Institutions develop better routines and capacities to
and modes of collaboration led by private stakeholders, who
implement their respective missions and goals, owing to
often exhibit more responsiveness than public stakeholders
their involvement in codesign.
to emerging opportunities and who possess the skills and
■ New institutional arrangements allowing better coordi-
tools to deal with consumers and markets. On the other
nation and synergies among stakeholders.
hand, research may play a vital role in innovation programs
■ A virtuous, sustainable circle through which, at the end
by ensuring that public goods are identified, produced, and
of the codesign process, the various stakeholders are
protected and that political agendas and concerns relating to
more willing and able to keep innovating as needs or
sustainability, poverty reduction, and equity are duly
opportunities arise. In short, a greater capacity for stake-
reflected in the collaboration.
holders to take their destiny into their own hands.
MODULE 4: THEMATIC NOTE 4: CODESIGNING INNOVATIONS: HOW CAN RESEARCH ENGAGE WITH MULTIPLE STAKEHOLDERS? 315
T H E M AT I C N O T E 5
316
Table 4.7 Priorities for Investment to Support Organizational Change
Organizational element Priority for investment and change
Capacity development and Develop new competencies related to communication, facilitation, and mediation needed to work with diverse
change management stakeholders in identifying and developing new opportunities for technical and institutional innovation
Strategy formulation Shift from production of research outputs to fostering innovation processes that contribute to broad
socioeconomic goals
Accountability and governance Include representatives of diverse stakeholders, including smallholders, market agents, and consumers, in
governance bodies
Partnership policies Formulate policies for working with partners, including the objectives and types of partnership and principles
for decision making, communication, and sharing of costs and benefits
Planning and priority setting Develop practical procedures for systematic planning and priority setting, which combine stakeholder inputs
with analysis of costs and benefits
Monitoring and evaluation (M&E) Develop learning-oriented M&E systems that clarify “impact pathways,” monitor progress in relation to these
markets, and use results to improve the design and implementation of ongoing and future work
Incentives for change Reward teamwork and partnerships that produce practical results. Develop competitive grant schemes for
innovation projects
Administration and finance Increase flexibility in arrangements to allow adaptive management and responsiveness to emerging needs and
opportunities
Organizational arrangements Develop mechanisms or units to manage inter-organizational partnerships with multiple lines of accountability
Beyond the agricultural research Develop specialized innovation brokerage units outside of the national agricultural research organization
organization
Source: Author.
the organization is needed to formulate appropriate goals and crops and livestock. In an AIS, the mission and strategy
strategies, improve policies and management systems, and should focus on fostering innovation processes that address
adjust organizational structures where appropriate. broader social goals, including poverty reduction; improved
Organizational change is a highly political process, food security; improved health and nutrition; and sustain-
because there are winners and losers. For that reason, change able management of natural resources.
initiatives need to have a powerful guiding coalition and Reformulating the strategy of an organization is not the
local support. Effective capacity development and change job of a management consultant or senior manager. It needs
management require experts, local and international, who to be done in a participatory fashion, involving representa-
possess not only technical expertise but skills in coaching, tives of a cross-section of management and staff, to build a
process facilitation, and management development. strong coalition for change within the organization.
For agricultural research organizations to shift their focus
from doing research to using research to foster innovation, they
Accountability and governance
are likely to need changes in the following areas: strategy
formulation; accountability to end-users and beneficiaries; Accountability refers to the processes and practices that an
partnership policies; planning and evaluation systems; organization uses to keep its stakeholders informed, take into
incentives; administration and finance; and organizational account and balance their interests, and ensure adequate
arrangements. Box 4.22 describes how a Tanzanian capacity- responses to their concerns (Blagescu and Young 2005) (box
development program addresses some of these needs. 4.23). In agricultural research institutes, accountability proce-
dures usually focus on meeting the needs of funding bodies
(the public treasury and donors) and pay little attention to
Strategy formulation
the needs and interests of partners and intended users of
Reformulation of the basic goals, values, mission state- research products and services (development programs,
ments, and strategy documents of agricultural research farmers, market agents, consumers). In particular, small-scale
organizations can be a crucial area for investment, because farmers have little voice and influence in decision making.
this information influences the motivation and guides the Investors can encourage agricultural research organiza-
behavior of all the organization’s members and programs. tions to include representatives of different stakeholders,
The mission and strategy of agricultural research organiza- including smallholders, in their governance bodies (see
tions traditionally focused on producing research for major module 1, TN 1) and to incorporate principles of good
MODULE 4: THEMATIC NOTE 5: ORGANIZATIONAL CHANGE FOR LEARNING AND INNOVATION 317
Box 4.22 Strengthening Capacity in Tanzania through a Client-Oriented Approach to
Managing Research and Development
Tanzania’s Ministry of Agriculture and Food Security District Agricultural Development Plans. Researchers
wanted to internalize a strong orientation to clients in participated in Farmer Field Schools and farmer
all of its services. The ministry’s Client Service Charter, groups, including farmer research groups. The capacity
adopted in 2002, required the ministry to establish ser- to develop effective research proposals for national and
vice contracts with clients. The national agricultural international research funds improved.
research system adopted a Client-Oriented Research and Lessons. Lessons from this capacity-strengthening
Development Management Approach (CORDEMA) program include:
in 2003. Under the multidonor Agricultural Sector
Development Programme (2006–13), public and pri- ■ A comprehensive framework is needed for change
vate providers of agricultural research use the management. It should include regular reflection
CORDEMA approach to provide more relevant and based on close monitoring of the framework, insti-
effective services. Funding for services comes from tutional support, flexibility, and links between all
performance-based contracts and Zonal Agricultural
management areas.
Research and Development Funds (ZARDEFs) (com-
■ Build awareness of the need for a client and service
petitive grants).
Organizational change involves training public orientation at all levels, among staff of the research
researchers and their partners, who also develop a col- organization at the national level, ministerial deci-
laborative, market-focused agenda for R&D. Funding sion makers, and national policy makers. Broad,
is available to plan and competitively fund collabora- effective awareness cannot be achieved by zonal and
tive R&D. Change management focuses on developing district champions alone.
capacities in (1) human resource management, ■ Provide resources for training and sustained learn-
(2) financial management, (3) partnership and linkage ing with follow-up funding. To maintain the
management, (4) planning, monitoring, and evalua- momentum for change created during training, fund
tion, and (5) output orientation, dissemination, and at least part of the subsequent organizational change
information management. activities as well as win collaborative research pro-
The capacity development program includes all
posals. Otherwise the momentum is lost.
24 research managers (national and zonal), 30 zonal
■ Durable change in research organizations concerns
CORDEMA facilitators, and more than 280 researchers
and partner agencies competing for grants. It began not only researchers but all staff. It includes service
with the development of a National Facilitation Team units and financial administrators as well as support
and subnational training teams. The curriculum was staff and field assistants.
developed collaboratively by the Ministry of Agricul- ■ Trained and competent facilitators are needed
ture, a university, a farmer networking organization, nationally and locally. To avoid conflicts of interest,
and the Royal Tropical Institute of the Netherlands. facilitation should not be combined with resource
Results and benefits. Although it is too early to ver- management or implementation.
ify whether agricultural innovation has increased and ■ Monitoring organizational and institutional
influenced the impact of research on development, the change is essential to maintain momentum and
CORDEMA program has improved awareness that
inform decision-makers.
research should be managed as a performance-
■ Research organizations need autonomy for full
oriented, demand-driven service. Among other results,
the program increased interaction between research, institutionalization of CORDEMA. In Tanzania,
the private sector, and farmers. These “innovation tri- implementation was slowed by a hierarchy of policy
angles” benefited from research funds available makers, many of whom were not directly involved
through the grant program and activities related to with or committed to the change process.
Sources: Personal communication from Willem Heemskerk (KIT), Ninatubu Lema (Department of Research and Training), and
Zainab Semgalawe (World Bank); www.agriculture.co.tz; www.kit.nl; DRT 2008; Hawkins et al. 2009; Heemskerk et al. 2003; Lema,
Schouten, and Schrader 2003; Schrader et al. 2003.
Source: One World Trust, www.oneworldtrust.org. Planning and priority setting. Planning and priority
setting assume even greater importance in the changing
context for public agricultural research. As competitive
accountability into the rules and procedures of their boards grants come to replace core funding and block grants for
of trustees and other governing bodies. agricultural research, as the goals of agricultural research
organizations proliferate and become more complex, and as
Partnership policies
agricultural research organizations work with more partners,
they need more systematic planning and priority-setting
Although agricultural research organizations already work procedures that combine stakeholder inputs with analysis of
with partners, whose numbers will only grow as AIS the research costs and benefits. Module 7 in this sourcebook
approaches become mainstreamed, few agricultural research provides guidance on planning and assessment approaches
organizations have formal partnership policies, leading to and bodies (such as research-innovation councils, research
frequent confusion, inefficiency, and conflict. A priority for networks, and subsector networks, platforms, or asso-
organizational reform and for investment in this area is to ciations) that can perform planning and priority setting. The
support the formulation of appropriate policies for working sourcebook on planning agricultural research (Gijsbers et al.
with partners in research and innovation processes. Partner- 2001) and the collection on prioritizing agricultural research
ship policies need to define: (Raitzer and Norton 2009) provide useful approaches and
methods for planning and priority setting. The value of well-
■ The objectives the organization seeks by engaging in facilitated priority-setting exercises goes beyond their
partnerships. empirical results. By engaging partners and external
■ The main types of partnerships employed by the organi- stakeholders in a process of shared reflection over the
zation. validity of assumptions underpinning impact pathways,
■ Principles for working in partnership, including decision priority-setting exercises also promote collective learning
making, communication, and sharing of costs and bene- and strengthen relationships among stakeholders. (Raitzer
fits (including intellectual property). and Norton 2009, 2).
Since there is little experience in this area to date, the Monitoring and evaluation. As noted, agricultural
payoff to investment projects that support development of research organizations typically employ monitoring and
MODULE 4: THEMATIC NOTE 5: ORGANIZATIONAL CHANGE FOR LEARNING AND INNOVATION 319
evaluation to satisfy accountability requirements and report institutional evaluation systems for agricultural research
to external funding bodies. M&E programs are seldom organizations are discussed in the inception report for
designed to draw lessons from experience to improve the establishing a CGIAR independent evaluation arrangement
design and implementation of programs. Similarly, ex post (Markie and Compton 2011).
impact assessment is done mainly to document results of
past investments and justify future funding, rather than to
Incentives for change
learn from experience with a view to improving future
programming (Kelly et al. 2008; see also module 7). Another priority for investment projects is to ensure that
Improving M&E systems is an important area for invest- researchers have adequate incentives to communicate and
ment. Innovative evaluation approaches are needed to: work effectively with others—other researchers in other dis-
ciplines, development professionals, agricultural service
■ Articulate “theories of change” and “impact pathways” providers, and farmers and other market chain actors—to
for projects and programs, with clearly defined progress promote agricultural innovation. There are two main ways
markers. to provide such incentives. The first is through human
■ Monitor and evaluate progress and results in relation to resource management policies and practices that reward
these markers. teamwork producing practical results. The second is through
■ Use the results to improve the design and implementa- competitive grant schemes for innovation projects. Without
tion of ongoing and future research and research-related such incentives, individuals are more likely to continue pro-
activities. ducing research publications, regardless of their relevance,
than to work with partners to ensure that research results are
Module 7 provides guidance on M&E, and useful relevant and useful. Module 5 describes various approaches
approaches are also presented by Raitzer and Norton (2009) for implementing competitive grants schemes; box 4.24
and Walker et al. (2008). Issues and ideas for developing below provides an example from Peru.
Box 4.24 Promoting Agricultural Innovation through a Competitive Funding Scheme in Peru
During the 1990s, Peru took important steps to liberal- administratively independent of the national agricul-
ize the economy, but smallholders did not share in the tural research institute (INIA, Instituto Nacional de
benefits. Public expenditures on research represented Innovación Agraria). INCAGRO’s innovative features
only 0.2 percent of agricultural GDP. In 1999, the Gov- included:
ernment of Peru and the World Bank initiated a pro-
gram to increase the competitiveness of the agricultural ■ An approach and tools for rigorous and transpar-
sector through the adoption of environmentally sound ent funding (clear rules, an independent vetting
technologies generated and disseminated by a decen- committee, and an efficient and transparent moni-
tralized technology innovation system led by the pri- toring system).
vate sector. The new program relied on a competitive ■ Empowerment of producer groups to plan and carry
funding scheme to promote innovation. A Fund for out agricultural innovation projects and demand
Technical Assistance supported extension services for extension services.
producer groups and field-level adaptive research. A ■ Use of business plans to estimate expected economic
Strategic Services Development Fund supported benefits.
research as well training for extension providers. Fur- ■ Cofinancing of innovation projects through pro-
ther support aimed at developing institutional capacity ducer groups and/or alliances.
in the public sector to formulate and implement ■ Establishment of regional offices with staff to facil-
agricultural innovation policy in conjunction with the itate and coach the producer groups and alliances.
private sector. INCAGRO, the program coordination ■ Innovation project budgets that include funds for
unit, resided in the Ministry of Agriculture and was hiring technical experts as innovation brokers.
(Box continues on the following page)
■ A database management system that covers all aspects of these institutional innovations remain to be
aspects of the project cycle. worked out and the future of INIA is uncertain, the
competitive funding model to promote agricultural
Results. The program reached most regions of the innovations has proven effective.
country and appears to have increased the volume and Lessons. The main lessons from this experience
quality of available extension services. The research include:
fund also appears to have contributed to setting
national priorities for research funding, developing a ■ Institutional success did not depend on designing an
research agenda, strengthening researchers’ capacities institutional model for agricultural innovation for
for innovation, strengthening producer organizations, the country but on sound implementation of the
and achieving research impacts. An ex post cost-benefit competitive funds themselves (in other words, the
study found that a sample of 171 agricultural extension power of the model was that it created institutional
subprojects financed through INCAGRO had an aver- capacities on the demand side).
age internal rate of return of 54 percent. ■ Despite the significant risks involved in promoting
Not unexpectedly, establishing the competitive innovative approaches from outside the predomi-
funding mechanism outside of INIA created resistance, nant institutional structures, specific circumstances
and a 2008 law placed INCAGRO under INIA. Even so, can justify such an approach.
INCAGRO had helped create institutional capacity in ■ Transparent policies and selection and monitoring
the regions, including producer organizations and procedures are keys to successful competitive funds.
public-private alliances which could compete for new INCAGRO’s operating procedures, information sys-
cross-sectoral innovation funds established by the gov- tems, and communication strategies were important
ernment. The largest fund was based on the INCAGRO in implementing the program effectively.
model and designed by former INCAGRO staff. ■ Placing INCAGRO staff throughout the country
A recent law requires INIA to promote the establish- supported national decentralization goals. Other
ment of a national, pluralistic, demand-driven agricul- competitive funding programs in Peru noted the
tural innovation system. Though many practical strength of this decentralized approach.
Sources: Klaus Urban, FAO (personal communication); Días Avíla, Salles-Filho, and Alonso 2010; INCAGRO 2010; Fresco 2010;
Vargas Winstanly 2010; López Heredia 2010; http://www.incagro.gob.pe/WebIncagro/inicio.do.
Note: More nuanced findings on the Peruvian case are presented in World Bank Independent Evaluation Group (2009).
http://lnweb90.worldbank.org/oed/oeddoclib.nsf/InterLandingPagesByUNID/DB83D0B3CC8500D085257 8330014721A.
Administration and finance regional, thematic, or value chain mandates can help bring
administration and finance “closer to the field.” Another
As innovation processes are inherently dynamic and unpre-
option is to establish semiautonomous bodies (such as foun-
dictable, working to promote pro-poor innovation requires
dations) that may use administrative and accounting proce-
considerable flexibility in administrative and financial
dures that are simpler and more flexible than those which are
arrangements. Yet flexibility can be difficult to achieve in
common in the national agricultural research organization
traditional public administrative systems, which demand
within the public sector. PROINPA in Bolivia is a successful
considerable forward planning of activities and expendi-
example of a foundation dedicated to agricultural research
tures. Working to promote innovation processes also
and development (Gandarillas et al. 2007).2
requires extensive work “off campus” that is difficult to
monitor.
Agricultural research organizations that support or
Organizational arrangements
engage in pro-poor innovation may need to adjust their
administrative and financial procedures to gain more flexi- By themselves, changes in organizational structure are unlikely
bility and responsiveness to unanticipated needs and oppor- to produce the behavioral changes for agricultural research
tunities. Decentralizing decision making to units with organizations to promote innovation more effectively,
MODULE 4: THEMATIC NOTE 5: ORGANIZATIONAL CHANGE FOR LEARNING AND INNOVATION 321
although some new organizational arrangements can be use- the full cost of their operations—hence the key role for public
ful. They include specialized units responsible for spanning investment.
institutional boundaries and for innovation brokering.
The National Agricultural Innovation Project (NAIP) is gave public sector scientists direct experience of the
a major reform initiative implemented over six years challenges involved in partnering with a wide range of
(2006–12) by the Indian Council of Agricultural nonconventional partners critical for innovation. Les-
Research (ICAR), with funding from the Government sons from this experience have not been systematically
of India and the World Bank. NAIP seeks to accelerate documented to date, but interactions with scientists
the collaborative development and application of agri- involved in NAIP suggest the following organizational
cultural innovations involving public research organi- and institutional outcomes:
zations, farmers, the private sector, and other stake-
holders. ICAR is responsible for catalyzing institutional ■ Greater appreciation of the range of skills needed
change through initiatives in the areas of policy, strat- for innovation and the complementary roles of
egy, governance, financial management, and accounta- diverse partners.
bility mechanisms and through a massive human ■ The importance of broad consultations with a range
resource development initiative. NAIP has established of actors before conceiving project ideas and devel-
51 market-oriented collaborative research alliances of oping concept notes.
public, private, and nongovernmental organizations as ■ Better understanding of how to develop large-scale
well as farmer groups and international organizations. projects with multiple partners, which can achieve
Applied research focuses on technological innovation significant impact.
in disadvantaged rural areas. Basic/strategic research ■ More frequent project reviews with partners at reg-
focuses on such areas as biotechnology, nanotechnol- ular intervals.
ogy, and postharvest technology. Nearly 60 percent of ■ Improved facilitation of partnerships and brokering
the research funding provided under NAIP is chan- of innovation processes.
neled through competitive grants to research partner- ■ Increased confidence of scientists to work with
ships involving public, private, and nongovernmental private and nongovernmental organizations.
organizations.
ICAR faced several challenges in implementing Lessons. Externally funded programs such as NAIP
NAIP because of the scale of the project, its broad provide useful opportunities for researchers to learn
vision of joint technology development by public and how to work with the wide range of actors needed for
private organizations, and the formation of coalitions innovation, but such partnerships are challenging for
with a wide range of partners. It addressed these chal- organizations with a long history of working in isola-
lenges through extensive awareness campaigns prior to tion. Aspects of research project management (review,
initiating the grant program; a helpdesk to support financing, procurement, and so forth) in public
potential project partners; a sophisticated monitoring organizations must change to provide the support and
and evaluation system; and partnership guidelines that flexibility for partnerships to flourish. Systematic
provide for management of intellectual property and assessment of and reflection on the experience gained
sharing of capital expenditures. through NAIP will yield valuable insights to further
Results. The project’s main results and benefits reform the national research system and enable good
relate to organizational and institutional change. NAIP practices fostered by NAIP to take root and multiply.
Sources: Rasheed Sulaiman V, Centre for Research on Innovation and Science Policy (CRISP), Hyderabad (personal communica-
tion); Mruthyunjaya 2010; NAIP 2010.
MODULE 4: THEMATIC NOTE 5: ORGANIZATIONAL CHANGE FOR LEARNING AND INNOVATION 323
commitment to change, and the possibility that broader rizes useful lessons on what works and why (World Bank
reforms may be needed to support innovation. Independent Evaluation Group 2008).
MODULE 4: THEMATIC NOTE 5: ORGANIZATIONAL CHANGE FOR LEARNING AND INNOVATION 325
I N N O V AT I V E A C T I V I T Y P R O F I L E 1
he International Livestock Research Institute The objective—redesigning ILRI to support livestock devel-
326
Box 4.26 Building Capacity in Livestock Innovation Systems: Early Results from the
International Livestock Research Institute and Partners
A starting point for building capacity in livestock inno- ■ Partners from public, private, and nonprofit
vation systems is to make it easier for the actors to organizations developed and tested index-based
innovate—through organizing, partnering, and linking livestock insurance in Kenya’s Marsabit District in
in a number of ways. This form of capacity building is a project initiated in 2009. The insurance proved
a major element of recent projects by the International commercially viable and will be scaled up for use
Livestock Research Institute (ILRI) and its partners. in Ethiopia. The first pilot involved Equity
Networking actors. The Fodder Innovation Project Bank of Kenya, UAP Insurance, and Swiss-Re as
(funded by the UK Department for International commercial partners. More than 2,000 contracts
Development) works with partners within and outside have been issued, covering livestock worth over
government in India and Nigeria to form innovation US$1 million and attracting premiums exceeding
networks that enable actors in local livestock systems to US$77,000.
organize for innovation. Working with a diverse set of ■ A vaccine against East Coast fever has existed for
actors in the system made it possible to address broad more than three decades. Highly effective and in
system constraints rather than narrow technical issues. great demand, the vaccine has been produced in
Partner organizations have started to institutionalize ILRI’s laboratories, but more widespread distribu-
this approach (see box 4.27 for details). tion would require an effective cold chain. To scale
Designing interventions around a service hub. The up production and make the vaccine more widely
East Africa Dairy Development Project, initiated in late available, the Global Alliance in Livestock Veteri-
2007, has built upon ILRI’s experiences in Kenya and nary Medicines is partnering with ILRI and private
elsewhere to design interventions around a “service companies to establish viable commercial produc-
hub” that develops a network of actors to introduce, tion and delivery systems (module 6, IAP 2).
test, and offer a range of services, technical options, and
information. New partnerships broaden the participation of the
Forming public-private partnerships to reach poor. Several new projects respond to zoonotic diseases
clients. Several projects engendered new partnerships such as avian influenza by building the capacity of vet-
between public and private agencies: erinarians and public health officials in early detection,
diagnosis, and response. The projects mitigate disease
■ The Livestock, Livelihoods, and Markets project risk by improving coordination at the national level. An
(LiLi), started in 2007 with the International Crop “ecohealth” project initiated in 2009 in Southeast Asia
Research Institute for the Semi-Arid Tropics, pro- develops community-led options to prevent and con-
motes better delivery of livestock services and market trol emerging zoonoses. A group of regional health and
participation of smallholder goat and cattle keepers disease surveillance networks and institutions catalyzed
in Southern Africa. Through an innovation platform this effort. Under the Safe Food, Fair Food Project, ini-
facilitated by the Namibia National Farmers Union tiated in 2008, ILRI and its partners promote risk-based
in the LiLi Project, AGRA (a commercial agricultural approaches to improve food safety and the participa-
cooperative) sponsors a veterinary outlet as part of tion of the poor in informal markets for livestock prod-
its Social Responsibility Outreach Program. ucts in West Africa.
Source: Authors; www.fodderinnovation.org; http://www.ilri.org/ibli/; www.GALVmed.org; http://www.ilri.org/EcoZd;
http://www.ilri.org/SafeFoodFairFood; http://www.slideshare.net/ILRI/using-hubs-to-increase-smallholder-farmers-access-
to-services-experiences-from-the-east-africa-dairy-development-project; http://mahider.ilri.org/bitstream/10568/1787/1/
InnovationPlatformMozambique.pdf.
actions globally and in target regions, facilitates and con- ■ Reorganizing and refocusing research. There is no
venes livestock R&D actors around pro-poor livestock perfect way to organize human resources, but ILRI rec-
issues, and identifies gaps in knowledge and technologies ognized that impact depended on replacing discipline-
to fill. based and geographically specific research projects with
The Fodder Innovation Project provided practical tasks. Traditional logframes and monitoring and
guidance for implementing other projects with an evaluation systems are inadequate for measuring
innovation systems orientation: many of the indeterminate outcomes of innovation
systems (see module 7, IAP 6 and Lilja et al. 2010).
■ Fodder was too narrow a theme for building a net- ■ Financial management and planning must be
work. It is more appropriate to build networks and flexible and adept at accommodating emerging
innovation capacities around crop-livestock value opportunities and challenges.
chains that mobilize wider coalitions of partners ■ Engage policy actors from the beginning to identify
and more interest. Appropriate technology intro- windows for influence and for ownership of
duced through partnerships that ILRI had made research results. Policy stakeholders have observed
prior to the project proved to be a useful catalyst to that the evidence of impact is very valuable but the
involve new stakeholders and raise and address evidence base is too small.
broader system constraints.
■ Building true partnerships, facilitating stake- In its examination of the Fodder Innovation Project
holder platforms, and building innovation capaci- (among others), the “Linking Knowledge with Action”
ties take time. These processes and projects need study concluded that projects are more likely to link
longer time frames to mature and gain currency in knowledge with action when they (1) recognize that
policy debates and organizational change. scientific research is just one “piece of the puzzle,’’
■ Innovation processes need one or more organiza- (2) apply systems-oriented strategies, and (3) engage
tions or individuals to assume the critical roles of the partners who are best positioned to transform
broker, connector, and catalyst. An organization’s knowledge jointly created by all project members into
ability to do this depends on its particular situation. actions (strategies, policies, interventions, technolo-
The history of the partners and stakeholders, their gies) leading to better and more sustainable livelihoods.
social capital, and the legitimacy and credibility they The knowledge flows both ways between practitioners/
bring are all critical factors. implementers/policy makers and researchers—making
■ Monitoring and evaluating the processes and the emphasis on linking with action rather than linking
resulting changes are essential but far from trivial to action an important one.
are skilled at supporting collaboration and interactive It seems much more logical that ILRI should focus
processes that involve different types of stakeholders. A instead on building the capacities of key partners to play
critical function of brokers is to manage and deal with large these roles. This approach poses its own challenges: The
asymmetries of power among actors. Brokering roles can skills required cannot be mastered easily in formal training
be played by local government, extension services, CSOs, alone. They require substantial coaching and mentoring on
national research systems, or even the private sector, the job. Two vital questions for project designers to answer
depending on the constellation of skills, capacities, social are who is best placed to play this role, and who is responsi-
capital, legitimacy, and credibility they possess. Engaging ble for setting arrangements in motion.
nontraditional partners like the private sector is still a Researchers will need to hone their skills to assume the
challenge for NGOs and government as well as public roles that the innovation system requires, and researchers
research institutes. ILRI has found that assuming these from complementary disciplines rarely found in traditional
brokerage roles is not always the best solution, given that research organizations will need to be engaged: anthropolo-
these intensive, long-term, and local processes demand gists, political economists, communications specialists, and
continuous engagement that is rarely supported by short project managers, among others. New institutional arrange-
project periods. ments will make it possible to work more effectively with
331
sustainability of selected agricultural value chains. Liveli- contributions lead to significant synergies and value
hood research alliances focus on strategies to sustain secure addition in the design and implementation of their
rural livelihoods in about 110 disadvantaged districts, research projects. ICAR and NAIP management have
mostly in rainfed, hilly and mountainous, dryland, tribal, invested considerable time in building partnerships and
and coastal areas. Basic and strategic research alliances focus providing support through meetings, workshops, and
on well-defined areas of frontier science with potential the Helpdesk.
applications for problems in Indian agriculture. ■ Helpdesk. The Helpdesk was established to support the
Promising consortiums and research alliances are new and more challenging partnerships that the con-
selected through a competitive process, and NAIP funds sortiums represent. The project outsourced Helpdesk
their proposed research. Members of each consortium are functions to one national institute and informed the
jointly responsible for the governance, design, and imple- prospective consortiums that it was there to help them
mentation of their research programs; maintaining satisfac- in a number of ways: by providing guidance for
tory fiduciary and safeguard arrangements; applying the preparing concept notes and full research proposals,
resulting innovations; and disseminating new knowledge assisting in matching consortium partners, and help-
through conferences, innovation marketplaces, networks, ing to overcome initial problems in managing the
and communications strategies. consortiums. The Helpdesk does not charge for its
services. The experts managing the Helpdesk under-
stand all of the process and details involved in forming
INNOVATIVE PROJECT ELEMENTS
consortiums; developing, selecting, and approving
India has one of the world’s largest public agricultural concept notes and full proposals; and the priority
research systems.2 In this context, NAIP produced three research themes. Users found the Helpdesk effective in
critical innovations: scenario planning, new kinds of part- facilitating the proposal selection process and forming
nerships, and the Helpdesk. consortiums. The Helpdesk used a number of tools in
its work: the Helpdesk portal, e-learning and multime-
■ Scenario planning. ICAR and World Bank teams con- dia modules, databases of potential partner institu-
ducted a scenario planning exercise that identified and tions and organizations, case studies of agricultural
analyzed critical policy and institutional challenges fac- projects using direct e-mail responses to potential con-
ing the agricultural sector and identified corresponding sortium members.
reforms that would strengthen the research system’s abil-
ity to meet those challenges. Scenario planning enabled
BENEFITS, IMPACT, AND EXPERIENCE
ICAR management to assess the consequences of alter-
native reform scenarios, including their likely benefits NAIP was approved in April 2006 and the approval of con-
and impact, and identify specific reforms to be sup- sortiums was completed only in December 2009. The sec-
ported through NAIP. This process has not only tions that follow describe some of the early results. Readers
increased government ownership of the reforms but also interested in tracking the project’s progress are directed to
its commitment to implement them. the NAIP website (http://www.naip.icar.org.in).
■ Expanding capacity and resources via partnerships.
The underlying principle of NAIP is the formation and
Overwhelming national interest
management of consortiums that bring research institu-
in the consortium approach
tions together with those who use research results. The
collaborative arrangements developed by these stake- The number of consortiums was three times the number
holders optimize the use of research resources in an anticipated, far exceeding expectations. The overwhelming
enhanced process of innovation, value addition, com- response enabled consortium leaders to assemble the
mercialization, and technology transfer that solves consortium partners with relative ease. From a total of 188
specific agricultural development problems. Research consortiums, 142 were selected through a two-stage com-
proposals prepared by the consortiums clearly define the petitive review, and the remaining 46 were sponsored. The
roles of the consortium leader and the other partners, average consortium budget is about US$1.4 million, of
including the budget for each institute. The broad array which approximately 62 percent of the committed amount
of participants and clarity about their specific roles and went to the 188 consortium leaders and 38 percent to the
Table 4.8 Consortium Leaders and Partner Institutions in the National Agricultural Innovation Project, India
Institutions as Institutions as Share of participating institutions
Type of institution consortium leaders (%) consortium partners (%) in the NAIP budget (%)
ICAR institutes 46.5 37.2 50.8
State and central agricultural universities 30.9 22.9 26.3
International institutes 2.7 1.4 1.9
Central institutes 8.0 7.1 6.6
State institutes – 2.0 0.6
Private agencies 3.2 10.4 3.9
Other universities 3.2 2.3 2.4
NGOs 2.7 13.3 6.3
Other institutions 2.7 3.4 1.2
MODULE 4: INNOVATIVE ACTIVITY PROFILE 2: AN INNOVATIVE APPROACH TO AGRICULTURAL TECHNOLOGY DEVELOPMENT 333
Box 4.28 Issues and Experience of Partners in Consortiums Funded by the
National Agricultural Innovation Project
The 188 consortiums consist of 188 consortium lead- Not Satisfactory. Milestones were developed to upgrade
ers (one leader for each consortium) and 646 part- their performance. Instances of problems with staff
ners, coming from about 370 public, private, and commitment, staff skills, and the flow of funds to part-
nongovernmental organizations. (Together, the con- ners have occurred. Most consortium partners had
sortium leaders and their partners comprise 834 problems with World Bank fiduciary requirements
project-implementing units.) Many consortium part- (procurement and financial management), environ-
ners are working together for the first time in addition mental and social safeguard requirements, and moni-
to participating in a World Bank-funded project for toring and evaluation. They find the requirements too
the first time. In this situation, implementation chal- rigid, especially the reporting requirements. Often
lenges are expected. They are being addressed as part funds have been delayed. Most of these issues have been
of the learning process for the consortium approach. or are being addressed. Finally, capacity has been
The coordination of the consortiums generally strengthened through training, workshops, the
appears to be working well, but some partners have Helpdesk, and manuals. Although some problems con-
experienced problems arising from poor coordination. tinue, the project implementation team is committed
The performance of 188 consortiums was rated in 2010 to addressing them and learning how to make the con-
using a scorecard system, and 15 (8 percent) were rated sortium approach more sustainable for all involved.
Box 4.29 Achievements by the Bioethanol and Banana Pseudostem Consortiums Funded
under the National Agricultural Innovation Project, India
A value chain model for producing bioethanol from structure of the unit is designed to manage the supply
sweet sorghum in rainfed areas through collective chain. One ton of stalks produces 269 liters of juice and
action and partnerships. This consortium is led by the 50 kilograms of syrup. Syrup production costs were
International Crops Institute for the Semi-Arid Tropics reduced by increasing juice recovery, syrup recovery,
(ICRISAT) and six partners (five research institutes, and labor efficiency. The syrup is sold to the bioethanol,
one private company). Although it is only partway food, and pharmaceutical industries. Although farmers
through its research program, the consortium has who cultivate sweet sorghum and raise livestock have
increased awareness of sweet sorghum’s multiple uses benefitted from this arrangement, the profitability of
in the project area (food, feed, fodder, and fuel) and bioethanol production ultimately depends on crude oil
organized farmer groups to produce the sweet sorghum prices.
crop. Farmers increased sweet sorghum yields by grow- A value chain of banana pseudostem for fiber and
ing improved varieties and using better management other value-added products. This consortium is led by
practices, and new farm equipment provided under the a university and four other partners participate (one
project reduced the drudgery of farm operations. research institute and three private business partners).
Farmers now use sorghum grain for food and feed, Banana pseudostem is generally regarded as a waste
stalks for syrup production, and bagasse for fuel and product and source of pollution after bananas are har-
fodder. A crushing unit (owned by the private partner) vested. In seeking to develop a value chain for banana
using ICRISAT’s bioethanol conversion technology was pseudostem, the university and research institute have
established to produce syrup and the organizational focused on the backward linkages (to banana farmers)
(Box continues on the following page)
and the private sector has focused on the forward link- prospects for various products (and conducting exper-
ages (developing useful, marketable products from iments on producing yarn from banana and synthetic
banana pseudostem). Consortium members have fiber). Farm income has improved because farmers
already been able to produce fiber, yarn, paper, candy, have been able to sell pseudostem through the project,
woven fabric, artificial leather, cellulose powder, vermi- and the conversion of banana pseudostem into various
compost, and liquid fertilizer from banana pseu- products has generated employment.
dostem; the machinery needed to produce these value- These examples demonstrate achievements that
added products has already been designed, fabricated, would not have been possible without the complemen-
and commissioned under this project (although not yet tary resources provided by each consortium partner.
commercially available in India). Having demonstrated These examples also demonstrate substantial economic
that these products are technically feasible, the consor- and social impact through value addition for all the
tium is currently analyzing the financial and economic stakeholders and the country.
Source: Based on information provided by NAIP Project Implementation Unit and the consortiums.
Box 4.30 Preliminary Results of the National Agricultural Innovation Project, India
Catalyzing and managing change in the national foods, and maize and maize products—among others.
agricultural research system. Knowledge can be a pow- Preliminary results for most of these value chains
erful change agent, and NAIP has given considerable appear promising with respect to the new technologies
attention strengthening research capacity through the used and the potential economic gains. For example, it
provision of knowledge. Students, teachers, and scien- may be possible to develop a new industry involving a
tists now have access to a much deeper knowledge large number of small-scale entrepreneurs in produc-
base. Over 2,000 scientific and professional journals ing and distributing briquettes.
can be accessed in 124 libraries; 155 of 368 e-courses Research on more sustainable and secure rural
have already been developed; 6,000 PhD theses have livelihoods. Subprojects encompass a wide range of
been digitally uploaded; electronic information on topics, including: scaling up crop production technolo-
agriculture is available through an “agro-web”; and gies; increasing water storage capacity through
10 business planning and development units have been improved natural resource management (extremely
established. Significant formal training should have a important in drought-prone parts of India); backyard
long-term effect on the human resources available to poultry production; generating employment through
the national research system (and wider AIS): already various natural resource management interventions;
1,611 experts have been trained (1,441 nationally, 170 expanding irrigated area; improving grain storage
internationally). capacity through storage bins; vermi-composting units;
Research to strengthen value chains. The project rice-fish-poultry farming; drought mitigation mea-
supports research for value chains representing a wide sures; and water harvesting. A few consortiums report
spectrum of potentially high-value agricultural prod- early results in improving yields of maize (by 30 per-
ucts: banana pseudostem, briquettes from industrial cent), rice (37 percent), soybeans (22 percent), wheat
residues, industrial agroforestry, oceanic tuna, potato (32 percent), sorghum (24 percent), and cotton (126
and potato products, natural dyes, bioethanol, coconut, percent). Improved resource-use efficiency and
seed of spices and flowers, millet foods, sorghum increased productivity are likely to raise incomes
(Box continues on the following page)
MODULE 4: INNOVATIVE ACTIVITY PROFILE 2: AN INNOVATIVE APPROACH TO AGRICULTURAL TECHNOLOGY DEVELOPMENT 335
Box 4.30 Preliminary Results of the National Agricultural Innovation Project, India (continued)
among marginal and small-scale farmers. To main- improve agricultural productivity, quality, and value
stream the best practices they develop, some consor- added in staple crops, horticultural products, livestock,
tiums are establishing sustainability funds. and fish. Promising results include the identification of
Basic and strategic research (frontier science). 30 genes specific to cotton fiber development; 10
Results from these subprojects are expected to advance herbal extracts to control ticks in cattle; a chip-based
scientific knowledge and yield economic benefits for biosensor and a micro-well chip platform to detect
farm families, the agricultural sector, and the economy ultra trace concentrations of pesticides and adulter-
as a whole. Subprojects focus on natural resource ants in milk; and a prototype rubber dam for small-
management innovations as well as innovations that scale watersheds.
Source: Information provided by NAIP Project Implementation Unit and consortiums.
outside their system. ICAR has started to mainstream the but complex to develop, review, revise, and approve. The
consortium approach and competitive selection process involvement of new partners from diverse backgrounds and
throughout its institutes. If these actions continue on a large inclusion of research issues that the public research system
scale, the process, interventions, and impacts initiated is formally pursuing for the first time (value chains and sus-
through NAIP are likely to be sustained and substantial. The tainable livelihood security) also extended project selection
consortium approach has encouraged partner institutes to and approval. If future projects fund a larger-than-expected
consider new strategies for solving real agricultural prob- number of subprojects, they must make appropriate
lems. The technical solutions emerging from the consor- arrangements to handle the increased workload for man-
tiums appear to have benefited from increased interaction agement, procurement, financial management, monitoring,
and creativity, given their quality, economic potential, effec- evaluation, and safeguard management. Otherwise imple-
tiveness, and level of appropriateness to clients’ needs. mentation will be delayed.
From the start, all consortiums must be aware that they
are required to follow agreed procurement procedures and
LESSONS LEARNED AND ISSUES
receive appropriate procurement training. The procure-
FOR WIDER APPLICATION
ment of goods (especially scientific equipment and sup-
The formation of consortiums, partnerships, and the plies), services, and works must keep pace with the imple-
competitive selection process has been a major but time- mentation of the project and research subprojects.
consuming achievement. Innovation is needed to shorten Procurement under NAIP was very slow, especially in the
this process without sacrificing quality and pluralism. All beginning. Most consortium partners had never worked
heads of research organizations must be encouraged to with Bank-funded projects. It took some time to convince
reach out to scientists whose work complements the pro- and train them to use World Bank procurement procedures.
ject’s research themes and overall benefits—a strategy that The Helpdesk seems to be a best practice to adopt in col-
should be pursued for all agricultural research, irrespec- laborative programs for agricultural research. In NAIP, the
tive of the funding source. Based on experience to date, Helpdesk portal has been extremely useful in forming con-
the consortium approach is likely to emerge as a best sortiums and preparing proposals, and it should be available
practice for agricultural research, if indeed it ensures high to address implementation problems as they arise, especially
returns to investments in agricultural research and pro- considering the large array of consortiums and organiza-
motes collaboration throughout the wider AIS. tions involved in the project. It could also be useful for dis-
Project teams must develop a strong sense of the number seminating success stories.
of proposals that are likely to be submitted and plan accord- At the beginning, establish an effective M&E system for
ingly. Subproject selection and review in NAIP were delayed internally tracking the project’s progress and performance
by 18 months by the high number of proposals submitted as well as its likely impact. A good M&E system provides
for consideration. The proposals were not only numerous regular feedback to project management about potential
MODULE 4: INNOVATIVE ACTIVITY PROFILE 2: AN INNOVATIVE APPROACH TO AGRICULTURAL TECHNOLOGY DEVELOPMENT 337
I N N O V AT I V E A C T I V I T Y P R O F I L E 3
338
and global business communities, thereby improving com- Public agencies3 fund and manage the consortium pro-
petitiveness and opening new business opportunities gram. The maximum contribution of the public sector to a
(Álvarez et al. 2010). Their specific objectives are to: single consortium is US$6 million, and each consortium
can operate for up to five years. The maximum yearly pub-
■ Increase national competitiveness by encouraging com- lic contribution to a consortium’s total budget is 25 percent
panies to invest in research, development, and innova- for research activities, with an additional contribution of
tion. 10 percent for human capital development and 15 percent
■ Implement programs for research and development that for research infrastructure. This funding is matched by
target long-term profits. cofinancing of 50 percent from nonpublic consortium
■ Encourage links between science and industry. members. Box 4.31 describes the conditions that consor-
■ Develop and strengthen scientific skills and techniques. tiums must meet to receive public financing.
Like a corporation, a consortium is run by a board com-
A consortium is defined as a technology company in posed of representatives from academia and industry in a
which one or more companies agree to carry out joint proj- number according to their capital ratio. Their responsibility
ects with universities, institutes, and/or technology centers is to define the consortium’s strategic aims, determine
to develop new technologies that can improve and add value which research projects to pursue, and allocate funding to
to production processes and products (Álvarez et al. 2010). each. A general manager reporting to the board is responsi-
The theoretical justification for this type of instrument is to ble for consortium administration and management. The
discover solutions for market failures limiting innovation manager’s main responsibility is to coordinate all activities
by an enterprise and encourage partnership strategies to of the consortium. Several consortiums have also estab-
incorporate knowledge externalities, coordinate the use of lished technical committees (appointed by the board) com-
complementarities, and share the risk of investment in tech- posed of researchers and business professionals who are not
nology innovation. involved directly with the research; their role is to monitor
Box 4.31 Characteristics and Conditions for Business-Technology Consortiums to Receive Public Financing
The consortiums and the projects under them must: The following conditions are expected to be met:
■ Produce results that contribute to economic growth ■ The objective justifies the need for different enter-
in Chile. prises and research institutions to undertake a sus-
■ Create permanent capacity for research, develop- tained R&D effort through the consortium.
ment, and innovation in Chile. ■ The consortium’s work will significantly strengthen
■ Use mechanisms to generate, transfer, and adopt existing industries and stimulate the emergence of
knowledge that will achieve the anticipated impacts. new ones.
■ The projected work requires public funding to be
■ Identify suitable participants for collaborative work,
performed.
based on their capacity (including managerial
■ The resources requested are consistent with the
skills), the proposed mode of collaboration between projects and their anticipated results.
universities, research institutes, and private compa-
nies, and the level of commitment to achieve the Consortiums are generally formed by enterprises that
desired results. seek to use cutting-edge research to satisfy the needs of
■ Provide sufficient cofinancing. The commitment of their particular productive sector. An integral part of the
the partners is expressed in the proportion of cofi- business model for these enterprises (and usually a pre-
nancing they are prepared to commit and the requisite for their participation in a consortium) is the
returns they envision as a result. development of patentable results that can be licensed and
generate spinoffs (in the form of new businesses).
MODULE 4: INNOVATIVE ACTIVITY PROFILE 3: THE AGRICULTURAL TECHNOLOGY CONSORTIUM MODEL IN CHILE 339
research and ensure that it is being conducted as planned, risen considerably since the consortiums were estab-
evaluate new research proposed by the consortium, make lished.
related recommendations to the board. ■ Consortiums have demonstrated the capacity to identify
and implement projects relevant to business or industry
and to achieve economies of scale in applied research.
INNOVATIVE ELEMENT
■ Industries’ and companies’ demands for specific applied
Technology consortiums have several novel aspects. The research spurred the formation of appropriate institu-
institutional setup of the consortiums was a major inno- tions and stronger research teams to develop technology.
vation because it gave a market orientation (from the ■ Participants gained access to knowledge that otherwise
companies) to research on technical solutions (to the would have been very difficult for them to acquire.
science-based institutions). This intermediate approach ■ In some initiatives, the participation of experienced and
does not imply that research and business should change emerging businesses allowed the companies to learn
in any fundamental way; it is simply a means to from one another. In the wine industry, for example,
strengthen the relationship between private enterprise most developing vineyards work with more established
and science. Companies and research centers forge links companies.
by pursuing applied research for profit. Members act ■ The trust engendered in the course of the research is
together “upstream” when they develop technology but likely to have important long-term implications for the
act in competition “downstream” in the marketplace. actors involved, increasing the potential for further col-
Companies determine the priorities and corresponding laboration.
research projects, which are executed by research insti-
tutions (either as consortium members or externally Given the consortiums’ short duration and the applied
contracted agencies). When a group of companies or an research they generally conduct, applications for IP protec-
industry identifies common priorities, problems, or tion are still very low. For the same reason, the companies in
opportunities and sets priorities, resources are allocated the consortiums have not yet achieved major technological
more efficiently to address them. Greater trust and under- breakthroughs.
standing among the actors will increase their propensity
to share information and achieve synergies for industry
LESSONS LEARNED AND GUIDANCE
and advances for research.
FOR THE FUTURE
MODULE 4: INNOVATIVE ACTIVITY PROFILE 3: THE AGRICULTURAL TECHNOLOGY CONSORTIUM MODEL IN CHILE 341
Box 4.32 A Vine-and-Wine Consortium: Vinnova Merges with Tecnovid in Chile
The quality and prestige of Chilean wine have risen to logical disorders in Merlot grapes; the fermentative
the extent that Chile now ranks among the top five capacity of various strains of yeast, and winemaking
nations in global wine sales. Two consortiums, Tec- processes that yield higher levels of antioxidants in the
novid and Vinnova, have joined forces to maintain and final product.
enhance this position and achieve the economies of The anticipated benefits and results of the collabo-
scale required for successful R&D. The R&D require- ration include: positive and synergistic interaction
ments are set by the companies and executed by uni- between academia and the wine industry (all teams
versity research teams. The consortium ultimately seeks consist of business professionals and university
to become a viable enterprise that manages continuous researchers); a competent professional team attuned to
innovation in the wine industry, from processing to corporate and business requirements channels the
marketing. industry’s needs for research and innovation; and
Through their merger, the consortiums will improve research that not only solves scientific problems but
the productivity of the wine industry, develop pro- produces results that can be incorporated into an enter-
grams for disseminating and adopting knowledge that prise’s management and marketing.
will enable the wine industry to use research results Lessons include the importance of sound leadership,
quickly and efficiently, and develop the human capital of working with mature enterprises, and of focusing on
needed to innovate at high scientific and technological innovations that are important to the national econ-
levels. The research programs focus on improving the omy and the industry. To meet global challenges, the
quality, productivity, and differentiation of wines and wine industry increasingly needs collaboration
on developing sustainable production practices. For upstream in R&D, needs to acquire additional technol-
example, researchers are studying which wines are most ogy and knowledge, and needs to increase its competi-
competitive among consumers, nationally and interna- tiveness in the wine market. If the best expertise to
tionally; strategies to ensure that planting material is reach those goals does not exist in Chile, industry must
free of disease and pests; the origins of certain physio- seek it abroad.
Potatoes, an important part of the Chilean diet, are (representing 1,500 small- and medium-scale farmers
grown by 15,000 producers on 50,000 hectares, mostly who operate 4,500 hectares in various locations) and 2
on small farms. The potato subsector contributes only are research entities: the Instituto de Investigaciones
a fraction of agricultural GDP. A business-technology Agropecuarias (Institute of Agricultural Research) and
consortium has been formed to improve the competi- Los Lagos University.
tiveness of Chile’s potato industry through stronger The Consortium has five lines of action: developing
participation in the international market for potato technology, strengthening human capital, adding
seed, potato for consumption, processed products, and value, management, and transferring and diffusing
potato varieties. The Consortium has taken the form of technology. It pursues research to develop production
a new company, Consorcio Papa Chile SA, through technologies adapted to particular agroecological con-
which a large part of the potato industry (mainly ditions and market requirements and is developing
small-scale producers) entered into a formal associa- new potato varieties with better postharvest character-
tion with technology institutes. The company has 17 istics and traits that match consumers’ preferences. It
shareholders, of which 15 are producer organizations has implemented a market intelligence system as well.
(Box continues on the following page)
The main benefit of the Consortium, aside from assem- actors, for which the products generated are essentially
bling commercial and public partners to produce public goods. A second important lesson is that a cor-
innovations requested by the industry, is that it is likely porate structure does not seem to be the best match
to increase private investments in science and technol- for a subsector with these characteristics. Finally,
ogy for the subsector. given the characteristics of the subsector and hetero-
One lesson from the potato Consortium that may geneity of the partners, a special program is needed to
prove useful elsewhere is that it is quite difficult to foster trust between partners (producers, companies,
launch a consortium in an industry with multiple, and technology institutions) if they are to work
diverse, geographically dispersed, and heterogeneous toward a common goal.
Source: Potato Consortium and author.
Finally, the role of public agencies in designing, imple- whole must be reviewed. The technical, administrative, and
menting, and evaluating the work of consortiums must be financial procedures used in consortiums should also be
reconsidered. The specific capacities required in personnel analyzed with a view to learning which practices enable con-
charged with tracking and monitoring consortiums as a sortiums to produce the best research outcomes.
MODULE 4: INNOVATIVE ACTIVITY PROFILE 3: THE AGRICULTURAL TECHNOLOGY CONSORTIUM MODEL IN CHILE 343
I N N O V AT I V E A C T I V I T Y P R O F I L E 4
344
Box 4.34 Advantages and Impacts of Learning Alliances
Learning alliances rely on an iterative learning process ■ Cumulative and shared knowledge about
jointly undertaken among multiple stakeholders with a approaches, methods, and policies that work in dif-
common interest or goal. Typically, stakeholders might ferent places, cultural contexts, and times (as well as
include research organizations, development and those that do not), and the reasons for success or
cooperation agencies, universities, policy makers, and failure.
private businesses. Learning alliances facilitate the ■ Learning opportunities across organizational and
development of cumulative, shared knowledge between geographical boundaries through the establishment
these stakeholders about what works, what doesn’t, and and support of communities of practice around spe-
why in temporal and spatial contexts. Shared and acces- cific topics.
sible knowledge in this sense contributes to improved ■ Synergy among multiple actors by providing a vehi-
development outcomes as lessons are quickly identified cle for collaboration, helping to highlight and develop
and learned. Improved links among research and devel- diverse solutions to problems that may appear
opment actors improve both research focus and devel- intractable to the individual actors.
opment practice. As funds diminish, increased effi- ■ Contribute to healthy innovation systems by build-
ciency becomes paramount in achieving positive ing bridges between islands of experience, helping to
livelihood change. Finally, jointly developed proposals assess how these results were achieved, and what
are also more attractive for funding agencies as they others can learn from these experiences.
have a higher potential for scaling out and up and ■ Capacity development for implementing, scaling
therefore to achieve broader impact. out, and improving innovative approaches and
A well-functioning learning alliance achieves the methods.
following outputs:
2 Developing new methods, tools, Action-research that generates methodological guides based on good practice, which
and approaches is then validated through capacity-development learning cycles
3 Generating information that can Conventional socioeconomic research to understand principles and lessons across
lead to policy influence experiences
Common principals applied by the development issues to research hypotheses. Partners select a
market-oriented alliance small number of these options for development as full
Collaborative processes require agreement on certain basic learning cycles. Attempts are made to target areas where
principles to govern collective work. Table 4.9 lists and partners have both an interest and ongoing projects, to align
describes these principles. the learning process with concrete results that are useful for
improving existing projects or contribute to the develop-
ment of new proposals.
Agenda setting
MODULE 4: INNOVATIVE ACTIVITY PROFILE 4: LINKING RESEARCH AND DEVELOPMENT ACTORS THROUGH LEARNING ALLIANCES 345
Table 4.9 Key Principles for an Effective Multipartner Learning Alliance
Principal Description
Clear objectives Multiple stakeholders have different objectives and interests. A learning alliance is based on the identification and
negotiation of common interests, needs, and capacities of participating organizations and individuals. What does each
organization bring to the alliance? What complementarities or gaps exist? What does each organization hope to
achieve through the collaboration? How can the alliance add value to partner activities?
Shared responsibilities, Organizations and individuals participate in learning alliances when: (1) they perceive benefits from this association,
costs, and benefits (2) transaction costs are lower than expected benefits, (3) benefits from collective action are perceived to be
greater than those obtained individually, and (4) results do not conflict with other key interests. Learning alliances
seek to benefit all parties. Therefore, transaction costs and responsibilities, as well as benefits and credit for
achievements, are shared among partners in a transparent fashion.
Outputs as inputs, Rural communities are diverse and no universally applicable recipe for sustainable development exists. Learning
documentation, and alliances view research and development outputs as inputs to processes of rural innovation that are place- and time-
experience sharing specific. Methods and tools will change as users adapt them to their needs and realities. Understanding why
adaptations occur, the extent that these lead to positive or negative changes in livelihoods, and documenting and
sharing lessons learned are key objectives.
Differentiated but linked Learning alliances have a diverse range of participants. Identifying each group’s questions and willingness to participate
learning mechanisms in the learning process is critical to success. Flexible but connected learning methods are needed.
Long-term, trust-based Rural development processes stretch over many years or decades. To influence positive change and understand why
relationships that change has occurred requires long-term, stable relationships capable of evolving to meet new challenges. Trust is
the glue that cements these relationships, but develops gradually as partners interact with each other and perceive
concrete benefits from collaboration.
practitioners in new methods through short, one-off ■ National learning fairs are based on the Most Significant
training courses. It involves establishing a series of “learn- Change method developed by Davies and Dart (2005).
ing spaces,” typically over 12–24 months (Best, Ferris, and ■ Web-based tools are used principally for documentation
Mundy 2009). and dissemination among partner agencies.
The development of feedback loops and space for reflec-
tion as a way to improve practice is the final method used by
INNOVATIVE ELEMENT: LEARNING
the learning alliance. It is implemented through face-to-face
ALLIANCE PROCESS AND TOOLS
meetings as well as web-based tools.
The learning alliance approach is made up of four inter-
■ Capacity-strengthening workshops are used to train related strategies:
local partners for implementing new approaches and
methods developed by learning alliance partners based 1. Capacity development activities seek to strengthen or
on best practice and action-research. Follow-up is pro- improve partners’ capacities in the selection, use, adapta-
vided by learning alliance partners. Results are docu- tion, and improvement of specific approaches, methods,
mented and feedback given to improve these new and tools. This process is directly linked to specific learn-
approaches and methods. This process is critical for ing cycles. Capacity building is not limited to training
action-research and strategic research results to be scaled workshops but focused on practical, field-level use, fol-
out and up. low-up, adaptation, and improvement, with continuing
■ Backstopping is carried out by an alliance member with support as partners implement the prototype. As a result,
more experience with a specific tool or approach who partners strengthen their ability to use specific tools and
pays periodic visits to other partners who are adapting approaches, adapt them to their needs, and discern when
the tool to their needs. specific methods might or might not be useful.
■ Write shops are used to help distil lessons learned into 2. Targeted action research responds to specific knowledge
documents. They are especially useful with partners who gaps identified with partner agencies. In this strategy, key
have difficulties finding time to write up results from research questions are identified and fieldwork designed
their work. The learning alliance adapted methods and and implemented in collaboration between research
tools developed by IFAD (Berdegué et al. 2002) and and development agencies. Outcomes and findings are
Douthwaite et al. (2007) for this purpose. shared with other partner agencies, selected decision
MODULE 4: INNOVATIVE ACTIVITY PROFILE 4: LINKING RESEARCH AND DEVELOPMENT ACTORS THROUGH LEARNING ALLIANCES 347
Box 4.35 How Learning Alliances Change the Work of Development Agencies: The Example of
Catholic Relief Services
The learning alliance approach has been successfully sets required the integration of several sectors (e.g.,
adopted within Catholic Relief Services’ (CRS) Agricul- microfinance, agriculture, water, and enterprise devel-
ture and Environment Program. It highlighted the opment).
interdependence of development actors and how, A research-development partnership was estab-
through partnership and collaboration with appropri- lished between CRS, CIAT, and the International Insti-
ate research and development actors, real gains can be tute of Tropical Agriculture–FOODNET in which they
made in achieving common goals. The reasons that led pooled agroenterprise skills and expertise with the
to CRS’s adoption of the learning alliance approach methodologies and tools that they had been developing
included: to help smallholder farmers link to markets. Together
they mapped out an iterative process of learning,
■ A desire to demonstrate the benefits of market-led putting into practice what had been learned, and then
approaches in relief and development. analyzing and reflecting on the results. From small
■ Frustration with the effectiveness of traditional beginnings in East Africa and Central America in
training programs. 2002–04, CRS is now involved in agroenterprise devel-
■ A disappointing record of adoption of innovations opment learning alliances in 5 regions, with participa-
in methodologies, technologies, and partnerships tion of around 30 countries.
based on traditional training methods. In countries where the learning alliance has been
■ A lack of feedback in more typical learning processes. most active, CRS agriculture programming has under-
■ Insufficient impact assessment and follow-up. gone a radical change. Where formerly CRS’s attention
was narrowly focused on a low-input/low-output, sub-
Prior to adopting the alliance approach, almost all sistence farming-oriented approach to food security,
the farmer training undertaken by CRS and its part- now CRS programs integrate the goal of enabling
ners dealt with a single skill set (for example, how to small-scale producers to enter competitive markets by
increase production of a particular commodity, or identifying market opportunities, strengthening rural
basic business and marketing skills). CRS and the Inter- enterprise, and converting poorly coordinated supply
national Center for Tropical Agriculture (CIAT) came chains into value chains. Many learning alliance partic-
to understand that self-sustaining growth and develop- ipants sum up this change by saying that they are help-
ment of farmers requires multiple sets of skills. The ing farmers transition from “struggling to sell what
learning alliance partners also realized that these skill they have produced, to producing what sells.”
Sources: Author and Best, Ferris, and Mundy 2009.
experience brought to the work of CIAT and Catholic Relief systems where “the competition” also participates. Second,
Services are detailed in box 4.35. clear and shared objectives, applicable results, personal
commitment, and flexibility are key elements. An effective
innovation system adds value to individual participants in
LESSONS LEARNED AND ISSUES
diverse ways by leveraging a collective motivation to work
FOR WIDER APPLICATION
smarter, learn, and share with others. Finally, the facilitation
Several important lessons can be extracted from the learning of an innovation system is an art in itself. The learning
alliance for innovation systems work. A key lesson is the need alliance taught the partners to value diversity of opinion
to increase connectivity and information flows between indi- and tension as a crucible of creative ideas.
viduals in a transparent fashion, facilitated by an honest In the hopes of contributing to more effective innovation
broker. This process is critical to build trust among partici- systems in the future, there are also several critical issues
pants. The experience highlights the importance of individ- and/or errors that can be taken from the learning alliances.
uals as opposed to organizations as well as the need to avoid These include: (1) the difficulty of selling a process in a proj-
organizational standard bearers who feel threatened by open ect- and outcome-driven context; (2) a lack of causality in
MODULE 4: INNOVATIVE ACTIVITY PROFILE 4: LINKING RESEARCH AND DEVELOPMENT ACTORS THROUGH LEARNING ALLIANCES 349
NOTES Thematic Note 3
Module 4 Overview 1. Asian and Pacific Association of Agricultural Research
Institutes.
1. New Zealand reformed its agricultural research system
in the early 1990s, creating separate research institutes 2. Association of Agricultural Research Institutes in the
under a research funding foundation based on short-term Near East and North Africa.
contestable grants. By 2005 government policy was 3. The Southern African Center for Cooperation in Agri-
reformed: “The aim appears to be a move away from short- cultural Research and Training.
term contestable funding and a move toward long-term 4. Association for Strengthening Agricultural Research in
commitment of resources to individual providers to plan Eastern and Central Africa.
their own priorities” (Johnson 2006:8). 5. CORAF/WECARD = Conseil Ouest et Centre Africain
2. By 2009, only Chad, Ethiopia, Madagascar, Malawi, pour la Recherche et le Développement Agricoles (West and
Mali, Namibia, and Niger had met the target, but for many Central African Council for Agricultural Research and
if not most of these countries (Malawi, for example), the Development); ASARECA = Association for Strengthening
new funds were directed more to short-term interventions, Agricultural Research in Eastern and Central Africa.
especially fertilizer subsidy programs, rather than to longer- 6. Programa Cooperativo para el Desarrollo Tecnológico
term investments in agricultural research. Agroalimentario y Agroindustrial del Cono Sur (Coopera-
3. In Sub-Saharan Africa nonfarm rural income is about tive Program for Technological Development in Agrifood
34 percent of total income, compared to 51 percent in Asia and Agroindustry in the Southern Cone).
and 47 percent in Latin America (Reardon, Berdegué, and 7. Cooperative Agricultural Research and Technology
Barrett 2007). Transfer Program for the Andean Subregion (Programa
4. IBGE, Instituto Brasileiro de Geografia e Estatística. Cooperativo de Innovación Tecnológica Agropecuaria
para la Región Andina) and the Cooperative Program
on Research and Technology Transfer for the South
Thematic Note 1
American Tropics (Programa Cooperativo de Investi-
1. For other definitions and functions, see the Interna- gación y Transferencia de Tecnología para los Trópicos
tional Association of Science Parks, http://www.iasp.ws/ Suramericanos).
publico/intro.jsp. 8. The ASARECA priorities assume potential benefits
2. Examples include cofinancing through trade organiza- across frontiers are counted equally. They may not be real-
tions and farmer associations to pay for research and steer ized if trade is banned during periods of drought and mar-
priorities toward the needs of farmer-members. Examples ket access is restricted by informal barriers.
include research interfaces with such organizations as La 9. Regional economic communities need to assume
Fundación Nacional del Arroz (FUNDARROZ, National responsibility for funding regional public goods, whereas
Rice Foundation) in Venezuela. For such arrangements donor funding may be channeled through funding author-
to work, the associations must develop the capacity to ity for specific activities/projects.
articulate their needs. The provision of research and 10. Efforts by CGIAR research centers in Eastern and
extension services will need to be pluralistic (that is, Southern Africa to develop a postdisaster and postconflict
involving many potential providers with the skills to pro- program classified 17 of 25 countries as belonging to these
vide those services). categories, but countries were very resistant to becoming
involved in their neighbors’ internal problems or found bor-
der areas too difficult to target.
Thematic Note 2
11. Many well-focused, tightly organized initiatives by
1. The conventional rationale for investing in agricultural CGIAR research centers and the Bill and Melinda Gates
research suggests that governments and development agents Foundation do not come through subregional organizations.
should finance agricultural research when the private sector 12. Economies of scale occur when the cost per unit of
“underinvests.” This condition is usually given when tech- research output fall with the number of units of output pro-
nology is a public good—in other words, when others can- duced, usually through better use of major fixed investment
not be excluded from its use and the private sector cannot or specialized skills. Economies of scope occur when the
recover the costs of developing it (Anderson 1998; Pray and cost of a desired output falls with an increase in the number
Umali-Deininger 1998; Day-Rubenstein and Fuglie 1999). of different research outputs being produced. These gains
2. Horton, Prain, and Thiele (2010) discuss PPPs in the occur when there is cross-commodity or cross-disciplinary
broader context of partnerships. learning as an external economy.
Incentives andand
Coordination Resources forAction
Collective Innovation
for
Partnerships and Business Development
Agricultural Innovation
OV E RV I E W
EXECUTIVE SUMMARY
Support for business incubation helps to scale up small
overnments in developing countries increasingly
G
and often newly formed enterprises that bring innovative
intervene actively in supporting private sector technologies and services to market. Developing countries
development through diverse means. Public invest- require broader, less intensive, and more diverse incuba-
ments in business development can direct private invest- tor services to develop entrepreneurial, innovative cul-
ments towards areas of significant public interest and areas tures and business environments. Agricultural clusters
where the private sector alone would generally underinvest. foster innovation through proximity; they encompass
They can facilitate or stimulate private investment through a interdependent firms in a value chain, service providers,
conducive policy, legal, and institutional environment. Pub- and associated institutions. Cluster-based approaches
lic investments for business development can also comple- have increased agricultural productivity, innovation, and
ment private investments (for example, by funding services business formation.
or basic research). Such public-private partnerships need to The key policy issues for agricultural business develop-
become a strategic element of the agricultural development ment and PPPs involve their potential for altering develop-
agenda. Formal technology transfer mechanisms (IPRs, ment priorities, the potential welfare effects of agricultural
licensing) offered through specialized technology transfer innovation and growth driven by private interests, welfare
offices are critical to engage effectively in PPPs and dissemi- concerns related to gender and social equity, and prospects
nate technology through market channels. for building a “shared responsibility system” capable of
The appropriate funding mechanisms to support innova- balancing the sometimes divergent interests of the public
tion by collaborating public institutions, private entrepre- sector, private sector, and civil society. Finally, in an envi-
neurs, and other actors depend on the public good to be ronment characterized by increasing private involvement in
produced and the role of the public sector. Useful alterna- agricultural innovation, very clear criteria will be needed to
tives include specialized innovation funds and matching determine when public intervention is justified and at what
grants to provide incentives for collaboration and risk tak- level. Every publicly supported partnership or business
ing. The use of venture capital funding has been limited in development program must have a clear time frame and exit
developing countries, but small and medium agricultural strategy. If the temporary nature of public involvement is
enterprises require risk capital to capture opportunities pre- not clear at the outset, private investors’ decisions and busi-
sented by agricultural innovation. ness plans will be biased. The sustainability of social and
361
environmental services, on the other hand, is often assured growth in several ways. They can direct private investments
only through long-term public support. towards areas of significant public interest and areas where
the private sector alone would generally underinvest. They
can facilitate or stimulate private investment through a con-
RATIONALE FOR PUBLIC INVESTMENT
ducive policy, legal, and institutional environment. Public
The power of the private sector to innovate and foster eco- investments for business development can also complement
nomic growth is a critical driver of long-term, sustainable private investments (for example, by funding services or
development in agriculture. Development programs apply basic research).
two major instruments to engage with the private sector for The agricultural sector is characterized by specific mar-
this purpose: agricultural business development, which aims ket failures that are less prominent in other sectors, includ-
to stimulate general economic growth, and public-private ing the problem of scale, the time lags, and the multitude of
partnerships (PPPs), which aim to address development partners. To overcome these and other initial obstacles to
issues in conjunction with the private sector. private investment and enable new products or technologies
Agricultural development aims to achieve three objec- to be introduced, the public sector can provide incentives
tives: national food security, income for rural people, and the such as tax incentives, grants, and guarantees. Many govern-
sustainability of natural resources. These interdependent, ments support investments in new agricultural products or
sometimes conflicting objectives must be finely balanced; production systems until they can be commercialized or
for example, food security must not be attained regardless support the commitment of actors throughout an industry
of the cost to the environment. The private sector’s primary (in production, processing, and marketing) until a secure
goals are to generate income and economic growth, and its and mature business foundation develops. Most of the
involvement in agricultural development carries the risk recently subsidized biofuel production programs were justi-
that development will be inequitable. The challenge is to fied on these grounds.
find the common interests that will enable the private sector A typical problem in developing agribusinesses is that
to use its many advantages to encourage balanced agricul- the number and diversity of market players in a given value
tural development and innovation. chain is often high. A chain’s production base often consists
Public sector support for and cooperation with the pri- of large numbers of small-scale, unorganized, geographi-
vate sector are generally considered justified, valuable, or cally scattered producers. In circumstances such as these,
even necessary to: (1) compensate for market failures that which the market alone cannot improve, it makes little sense
prevent or hinder necessary private investments, (2) stimu- to introduce new production processes and products.
late growth and help businesses become established; (3) gen- Public funds are needed to facilitate the vertical and hor-
erate and/or direct innovation in areas considered important izontal linkages that will make the value chain efficient—for
for society; or (4) reduce some of the risk inherent in com- example, to organize farmers into cooperatives and associa-
mercializing new technologies. tions and create platforms for institutional cooperation. For
example, China’s government supports farmer-company or
farmer-company-researcher arrangements, in which farmers
Support for agricultural business development
organize to partner with investors in processing/marketing
For agricultural business development, the most important industries, contract research institutions to develop certain
objectives are to generate qualitative and innovation-led products, or move into processing and marketing their
economic growth and income opportunities. “Qualitative products themselves (see IAP 2).
growth” is associated with a range of additional public
goods that especially reduce extreme poverty, provide food
Support for public-private partnerships
security, narrow structural inequalities, protect the environ-
ment, or sustain the growth process itself (Thomas et al. Public support for PPPs in agriculture moves beyond busi-
2000). “Innovation-led” growth is based on innovative tech- ness development and facilitation and makes direct use of
nologies, processes, products, markets, or organizational individual private sector actors to generate public goods. Many
arrangements rather than on large additional uses of natu- governments and development agencies recognize that it
ral resources. can be more effective and sustainable for the public sector to
Public investments for business development are impor- work with the private sector to generate public goods in
tant because they can accelerate and improve the quality of ways that enable each sector to build on its comparative
or private sector partnerships, they can also be tailored to than small firms will benefit proportionately (World Bank
particularly stimulate and direct private sector development 2006). Even though the use of tax incentives is widespread
for R&D and innovation. (over two-thirds of OECD members have tax incentives, as
well as many developing countries), evidence of their cost
Tax incentives for R&D and innovation. R&D tax incen- effectiveness is not clear. Box 5.1 describes the experience in
tives have been used to encourage more spending on R&D. Chile, which has yet to undergo a closer impact evaluation.
Such tax incentives are usually provided in the form of tax In general, tax incentives tend to benefit larger companies
deductions based on the amounts spent in financing agri- with large-enough revenue streams. Small and start-up
cultural research and innovation. They can be a suitable companies may have difficulties benefiting from tax deduc-
instrument to overcome market failure resulting in under- tions because their revenue base is limited.
investment in R&D as they motivate companies to invest in Other forms of tax incentives used in some countries
innovation. Although such incentives may not always be include personal income tax deductions for individuals
limited to large corporations but include small and medium investing in startup businesses (effective only if the investor
enterprises, clearly large enterprises that pay more tax is paying any substantial income tax) and tax relief on
innovations
of public interest
Intermedia te
funding, but recovery difficult Tax breaks and other financial Initial public Matching grants
service fee incentives (e.g., subsidies, funding
collection public sector credit replaced by Competitive grants
important for guarantees) are common service fees
sustainability Risk capital
Commercial financing
Matching grants
Source: Author.
Note: BDS = business development services; TTO = technology transfer office; PPP = public-private partnership.
Chile was one of the first Latin American countries to ■ Thirty-five percent of the payments private compa-
introduce competitive funding programs for agricul- nies make to the research center against an R&D
tural research. These programs have helped to increase contract are considered a credit against corporate
the volume and quality of Chilean agricultural and taxes.
nonagricultural research significantly. Another step was ■ The remaining 65 percent of the payment is auto-
to introduce tax incentives. matically considered expense for tax purposes.
The main objectives of the incentives are to: The main requirements to qualify are:
■ Increase private investment in R&D. ■ Research centers need to be registered. The criteria
■ Strengthen the link between research centers and to be included in the registry include years of oper-
companies. ation, research capabilities, and good accounting
practices to ensure appropriate enforcement.
The R&D tax incentive works as follows: ■ Contracts need to be approved by CORFO, the
Chilean development and innovation agency.
■ Companies hire registered R&D centers through a
■ The company and research center cannot be related.
previously approved R&D contract.
Market assessment and reasoned justification of any and independently monitored and evaluated. The two
public intervention. Well-intended government inter- subsystems of service provision (funding and delivery)
ventions may be harmful for the long-term develop- need to be evaluated according to different perfor-
ment of markets for business services and business mance criteria. Within the organization that manages
development services, because they may distort the funds, the cost-benefit ratio of the previously
prices, create bad habits, and crowd out private com- established objective(s) should guide the evaluation.
petitors. For this reason, intervention, rather than At the level of service delivery, the evaluation should
nonintervention, in markets for business develop- focus on the proven impact and efficiency of links
ment services has to be justified on the basis of a clear between the provider and small and medium enter-
analysis of the situation. prises (SMEs).
Separating funding from service delivery. Major Establishing a direct link between performance
problems arise with subsidized service provision and resource allocation. Monitoring and evaluation
when the service provider and the organization are not objectives in their own right but should be
managing and administering the funds are identical. used for continuously improving the system. The
Without relatively complex external supervision most effective way to ensure the system’s responsive-
arrangements, it is nearly impossible to commit this ness is to link the allocation of funds directly to the
“system” to an efficient and cost-sensitive execution of performance of those who supply services. The suc-
its tasks. Inefficiencies often result from an explicit or cess of effective service providers is largely based on
implicit obligation to spend funds in a given period, incentive systems that provide financial rewards for
disregarding careful targeting and the best possible good performers.
cost-benefit ratio. Separation of funding and delivery Compulsory cofinancing. To ensure that SMEs feel
functions will reduce the risk of crowding out private some ownership of the services they receive, every
suppliers, especially when private companies can apply transaction should be partly financed by the customer.
for public funding to provide services. This kind of The proportion of cofinancing will depend on the
competition increases the transparency of service mar- character of the service and the final objective of ser-
kets and provides additional information on whether vice provision. Additional factors to consider include
there still is a case for public intervention. the business environment and changes in the institu-
Improved accountability. Many service providers tional setting. Services with predictable and appropri-
offer a more or less ample set of services, often without able outcomes should be largely financed by the
having established an accountability system to measure customer, while in some strategic areas it will be neces-
the cost and the income generated by each service sary to step up the share of funds transferred. When
offered. It is highly important to improve account- SMEs operate under conditions of economic growth or
ability and enable service providers to monitor market at least stability, a higher proportion of private financ-
success and cost-related aspects of each and every ser- ing should be expected. On the other hand, when
vice offered. Service providers with a public function or macroeconomic conditions are volatile and competi-
mission may then decide to cross-subsidize different tion is becoming life-threatening for many companies,
services to maintain important services that cannot be governments or other funding organizations may opt
provided on a cost-covering basis. for a higher share of subsidies, stressing short-term
Monitoring and evaluating performance. Public impact and outreach and temporarily sidelining
service provision must be continuously, transparently, aspects of financial sustainability.
entrepreneurial and innovative cultures and business envi- Technology parks and clusters. Technology parks (also
ronments. For more information on how an incubation known as science parks or research parks) are usually linked
approach may contribute to business development and with educational or research institutions and provide infra-
innovation in agriculture, see TN 3. structure and support services for businesses, particularly
Before entering into any partnership project or pro- introducing new technologies, or competitive and
gram, the rationale for the investment must be fully matching grants to “buy” public goods from the pri-
understood, along with the problem(s) to be fixed or vate sector. For environmental and social services,
outcomes to be achieved. These considerations have temporary or permanent subsidies are more com-
critical implications for the choice of: mon instruments. For creating an enabling business
environment, legislative instruments are comple-
■ Institutions and partners. If delivery of a public mented by direct investments in services, infrastruc-
good is the main objective of the partnership, it ture, and facilities.
must involve organizations that are capable of gen- ■ Exit strategy. Every support program must have a
erating the good (or that can undergo institutional clear time frame and exit strategy. The public sector
development to acquire this capability). This issue is intervenes to support private investment until
explored in the discussion of institutions and part- industries mature or technologies are proven and
ners later in this module. adopted. If the temporary nature of public involve-
■ Financing instrument. The appropriate financing ment is not clear at the outset, private investors’
instrument depends on the type of public good to be decisions and business plans will be biased. The sus-
produced and the role of the public sector. When tainability of social and environmental services, on
governments act as brokers in these sorts of partner- the other hand, is often assured only though long-
ships, common instruments include government term public support.
guarantees, risk or venture capital for developing and
Source: Author.
been used widely outside agriculture to support business- Food supply versus rural incomes
driven development, but its application in agriculture has
Building on business development and business-driven
been limited. Small and medium agricultural enterprises
innovation, agricultural development is likely to see pri-
require risk capital to fully capture the opportunities pre-
orities shifting toward growth and income generation and
sented by agricultural innovation, however. TN 6 sum-
possibly away from regional and global food security.
marizes experiences with and applicability of risk capital
Business development is driven by the interest of pro-
investment models for agriculture in developing and
ducers, processors, or traders of agricultural products in
middle-income countries.
generating profits (for example, by increasing factor pro-
ductivity, adding value, or developing new products and
markets) and capturing a meaningful proportion of these
KEY POLICY ISSUES
gains as additional income rather than passing them on to
The key policy issues for agricultural business devel- consumers.
opment and PPPs involve their potential for altering Increasing factor productivity in primary agricultural
development priorities, the potential welfare effects of agri- production is the main approach to increase food produc-
cultural innovation and growth driven by private interests, tion, but increased factor productivity does not always
welfare concerns related to gender and social equity, translate into higher profits for producers over the long run.
and prospects for building a “shared responsibility system” Historical trends show that after early adopters of a tech-
capable of balancing the sometimes divergent interests of nology achieve their initial high gains, most of the ensuing
the public sector, private sector, and civil society. Finally, in productivity gains are passed on quickly from producers to
an environment characterized by increasing private consumers in the form of absolutely or relatively lower
involvement in agricultural innovation, very clear criteria prices for foods. This scenario offers little to interest key
will be needed to determine when public intervention is business actors, with the possible exception of the input
justified and at what level. supply industry (box 5.4).
From an economic welfare perspective, additional agri- new demands for agricultural food and nonfood prod-
cultural economic growth and ultimately additional ucts. For example, agricultural raw materials like maize,
welfare in a society are generated by higher levels of pro- sugarcane, or cassava could be used in new ways for
ductivity, which in turn depend strongly on innovation. energy production; consumers’ changing preferences
Technologies that increase the volume of production could be served through market differentiation, brand-
(such as a higher-yielding crop variety) would shift the naming of products, and so on; an agricultural raw
supply function to the “right” and increase welfare, but material could serve as the basis for chemical or phar-
this shift would largely come at the expense of producers maceutical products; or agricultural products could be
because of a price-decreasing effect. Technologies that designed as functional foods. While the vast majority of
reduce the cost of production (such as insect-resistant Bt agricultural production is still destined to meet the
cotton, which reduces the use of costly pesticides) would world’s basic requirements for food, market differenti-
shift the supply function “downward” again, with a sig- ation and new products and uses will increasingly play
nificant welfare gain that would in this case be shared a role in raising the overall value of agricultural pro-
more equally between consumers and producers. duction, especially in middle- and higher-income
An alternative option for growth is possible by countries, with production coming from developed
actively addressing the demand function or creating and developing countries.
Source: Author.
Distributional effects of business-driven erations, with the risk that a growing role of the private sec-
agricultural growth tor could further erode social equity in agricultural devel-
The distributional aspects of agricultural innovations are opment. For example, women make up most of the rural
related to the food security issue just mentioned. As workforce (70 percent), but in comparison to men, women
explained in box 5.4, the nature and type of innovations and still have far fewer resources (land, capital, and access to
technologies influence both absolute growth and welfare knowledge) to carry out their tasks (World Economic
gains as well as the distribution of welfare gains between pro- Forum 2011). The growing influence of civil society and
ducers and consumers. Agricultural innovations and growth shared responsibility for social and gender issues by the
driven by business interests not only open new growth public and private sector are positive, continuing develop-
opportunities but are likely to move agricultural develop- ments, but on their own they will not ensure that gender
ment in a different direction. Although innovation generated and equity considerations are reflected in agricultural
by the private sector can be important in securing continued development. Governments need to incentivize the private
gains in agricultural productivity, particularly from the agri- sector and promote and safeguard gender and social equity
cultural input side (in the form of new seed or chemicals, for in all business development activities, PPP contracts, ser-
which royalties can be sufficiently protected), the private sec- vices, and access to resources and knowledge. Specifically
tor will probably give much more attention to adding value targeted PPPs can make an important contribution to gen-
in agricultural production and production systems. This der and social equity goals (for an example, see IAP 2 on
emphasis will favor agricultural industry (companies sup- the China Technology Transfer Project).
plying inputs and processing or marketing products) and
possibly farmers as the primary producers, but it could put A shared responsibility system with
poor consumers of staple foods at a disadvantage. new roles for stakeholders
A well-functioning society provides a range of checks
Gender and social equity
and balances to keep the agricultural development agenda in
Compared to the public sector, private interests are not line with the desired priorities. Many companies have started
equally sensitive to gender or other social equity consid- to integrate social and environmental responsibilities in their
Civil society itself has developed a wide range of instru- are a win for consumers, business, and society, yet only
ments to express its interests and preferences and influ- 53 percent feel that companies effectively encourage
ence governments, development agencies, and private them to speak up on corporate social and environmen-
companies. “Mature and sensitive” societies signifi- tal practices and products. A majority of consumers
cantly influence the direction of technology develop- want to be engaged on four key pillars of responsible
ment and business opportunities. For significant num- business, including how a company conducts its
bers of consumers in these societies, the value of a food business (85 percent), its products and packaging
product lies not only in its taste, nutritional value, and (83 percent), its support of social and environmental
chemical and physical properties but in the resources issues (81 percent) and its marketing and advertising
used to produce it, the impact on the environment, the (74 percent). Consumers are prepared to dedicate time
contribution to global warming, and the social condi- and money to help influence corporate social/environ-
tions and safety of farm or factory workers. mental practices through surveys and research (70 per-
According to the 2010 Cone Shared Responsibility cent), buying or boycotting a company’s products
Study, 84 percent of Americans believe that their ideas (44 percent), or through email, phone, or employee com-
can help companies create products and services that munications (32 percent), among other activities.
Sources: Author; Cone 2010.
Public investment decisions need to be based on an eco- Additionality is a key consideration in programs to
nomic and a financial analysis. The economic analysis support private sector development. Certainly com-
determines whether an investment is likely to generate panies will enjoy public support and will give any
additional benefits at minimum rate of return for pub- assurance to donors that they would not have
lic capital investments. The financial analysis shows invested without such support. This assertion needs to
whether public funds are required at all. It helps to be proven. Especially in matching grant programs, the
ascertain, for example, if an investment is unattractive risk is high that public funds will simply replace
to private investors, and it determines the level or private funds. This substitution is not only inefficient
amount of public funds needed (the share of public but disturbs and biases competitiveness among pro-
grants or level of subsidy, for example). ducers or businesses.
Source: Author.
of the world’s poorest people live in rural areas, agricultural and advisory services, business incubators, technology
development goals are often torn between delivering low- parks, and cluster development. Formal technology transfer
cost food using increasingly scarce and more expensive mechanisms, such as intellectual property protection and
resources and providing income for poor farmers. Effective legal agreements that transfer property rights to commercial
partnering and business development must be guided by a or international partners, are becoming critical to engage
vision for agricultural development that sorts through these effectively in PPPs and disseminate technology through
issues, sets priorities, and makes strategic and often difficult market channels. TTOs are an interesting option, especially
choices. if they are affiliated with research organizations or universi-
The roles of the public and private sector must also be ties or host incubation services—in other words, if they
defined clearly. Business-driven agricultural development, focus on nurturing businesses that aim at commercializing
combined with PPPs, will require a definition or redefinition technology.
of the roles and responsibilities of the public and private sec- Working in isolation, public institutions and private
tors. Many governments already find it challenging to define companies are less and less likely to address global, regional,
and implement clear policies of what the public sector or even local agricultural development challenges. New
should do in relation to the private sector. Ministries of partnerships need to be encouraged, from global strategic
agriculture and their subordinate institutions often still partnerships and alliances to innovative PPPs and individ-
engage directly in enterprises related to agricultural produc- ual stakeholder partnerships. Such partnerships need to
tion, such as input supply or food processing facilities. They shift from being ad hoc initiatives to becoming a strategic
will need to reassess these enterprises with a view to facili- element of the agricultural development agenda.
tating participation by the private sector and partnering With the growing diversity of partners and institutional
with private entities. arrangements, the demand for more innovative funding mech-
A fundamental role of government is to create conditions anisms is growing as well. The significant experience with
enabling the private sector to generate economic growth some of these mechanisms, such as competitive research
through innovation and the development of new busi- grants and matching grants, can be built upon; at the same
nesses. The lifeline of an enabling business environment is a time, new applications for other funding mechanisms, such as
strong legal and institutional framework capable of protect- risk capital funding, are beginning to emerge.
ing investors and intellectual property. Module 6 gives
examples of strategies to develop an enabling environment
MONITORING AND EVALUATING INVESTMENTS
for agricultural innovation.
The public sector also intervenes actively in supporting Tracking and attributing the results of a business innova-
private sector development through business development tion or partnership program is highly challenging. The
374
laboratories to regulate biosafety hazards, control animal
Box 5.7 A Public-Private Partnership to
Implement Labor Standards in Asia diseases, detect genetically modified ingredients in food,
and enforce restrictions on seed imports or exports, among
other activities.
Many international companies produce goods in
developing countries where international labor
standards are not followed and in any case are IMPLEMENTATION ARRANGEMENTS
challenging to monitor. A public-private partner- AND INVESTMENT NEEDED
ship run by GIZ and Tchibo GmbH engages work-
ers in factories in Bangladesh, China, and Thailand Countries require a governance framework that brings
in implementing the International Labour Organi- together the capacities for designing and executing PPPs. In
zation’s core labor standards and improving work- most countries, line ministries or lower-level government
ing conditions. Since the project started, 13 local institutions execute PPPs, which may require public officials
training providers have acquired the specialized to master new skills. They must know how the private sec-
knowledge and tools to advise suppliers on setting tor operates and design collaborative programs accordingly.
up company structures for dialogue and imple- They must assess the risks and incentives that make collab-
menting social standards. Forty firms are taking oration attractive and do not waste taxpayers’ money. They
part in the pilot, and the number is rising. All have need skills to negotiate and manage contracts, and to avoid
designed and implemented action plans, including
disturbing markets, they need to be able to assess the long-
plans for electing staff representatives, avoiding
term implications of their partnership programs for indus-
forced labor, and reducing overtime.
try structure and competiveness. A new way to provide these
Source: GIZ 2009. capacities is to establish PPP units within cross-sectoral
Note: GIZ = Deutsche Gesellschaft für Internationale ministries such as finance or planning (Dutz et al. 2006).
Zusammenarbeit. These units can operate in several ways. For example, they
can provide information and guidance to other government
departments for designing and preparing PPPs, provide
PPPs have also helped governments or development advisory support and funding to line departments or agen-
organizations direct innovation toward specific areas of cies, or directly approve PPPs.
public interest. Governments or development organizations The execution of PPPs entails numerous steps, beginning
either acquire innovations directly from the private sector with the selection of private sector partners. For most PPPs,
or, through competitive research grant schemes or idea specially convened committees—whose membership comes
competitions, challenge the private sector to pursue innova- from government and the private sector but should not be
tive ideas and technologies of public interest. Efforts could dominated by the government representatives—select the
be as specific as identifying a solution to a particular plant private partners. Depending on the nature of the partner-
disease or as general as improving energy use in agricultural ship envisaged, the committee may also include farmers
production systems. (See table 5.1 in the module overview; or representatives of farmer organizations, agricultural
see also module 4, IAPs 2 and 3, for examples from India education, extension, or NGOs. Competitive application
and Chile.) and selection procedures are common. The objectives of the
A number of countries have started to use private organ- partnership program, the conditions for application, and
izations or NGOs to provide specialized services (such as the funding arrangements are publicly advertised. One or
agricultural advisory services) that public agencies once more rounds of proposals follow. In evaluating proposals,
provided. Development organizations have turned to com- the selection committee often calls upon additional exper-
mercial or noncommercial NGOs to deliver extension or tise in the form of a technical expert group or individual
training to farmers or train cooperatives and agricultural experts. These experts might prepare a short list of candi-
processors. For more detail, see module 3. dates, but the final decision remains with the committee.
With technologies and production processes becoming After selecting the private and public partners, it is a good
more complex and technically demanding, governments practice to formalize the partnership through a contract or
increasingly use private sector capacity for regulatory con- signed memorandum of understanding.
trols and enforcement. Partnerships have been formed with Generally PPPs are managed by project implementation
leading enterprises or specialized private companies and units established for this purpose and supported by a
The Chinese government maintains important genetic for visitors. The higher prices of meat from these pigs
stocks for animal breeding at a number of stations compared to conventionally produced pigs reflect the
throughout the country. In Anhui Province, the govern- higher costs of the more environmentally and socially
ment contracted a medium-scale company engaged in oriented process used to produce them. The govern-
pig breeding and processing to protect an endangered ment provided a share of the initial financing for the
pig variety called Wei Pig, which was close to extinction. company and its contract farmers. This partnership
The company undertook to commercialize the variety made it possible to close a government facility and
as a niche product while continuing with its mainstream sustainably protect genetic resources without public
pig production business. The market strategy for Wei funding, once the cofinancing ended. The partnership
pig involved a special “near nature” production process, succeeded owing to a combination of private technical
in which poor, small-scale farmers in mountainous know-how and experience, an innovative business and
areas raised pigs under contract for the company, which marketing concept, and significant private financial
operates a breeding center that also functions as a park resources, complemented by public startup funds.
Source: Author.
capacity gaps that may need to be filled, and arrangements for improve its reputation by demonstrating social or envi-
M&E are also important to consider before the partnership ronmental responsibility), but in most cases the desired
begins. Details of these guidelines, lessons, and issues follow. benefits are legitimate financial profits. It is important to
understand the benefits required by all partners to pre-
vent the partnership from being abused. For example, the
Guiding principles for partnership
real incentive for private partners may be to gain closer
Guiding principles for PPPs involve the clarity of their polit- ties to government to pursue a hidden agenda such as
ical objectives, potential mutual benefits, additionality, influencing political decisions or obtaining an unfair
competition and transparency, and sharing of risks and advantage over competitors.
responsibilities: ■ Additionality. Public funds should support PPPs only
when the private sector would not undertake a similar
■ Consistency with political objectives. The public partner activity to achieve the same outcome, either on its own or
must clearly define the larger political objective that as required by law.
motivates the partnership. For example, government ■ Competition and transparency. Like other forms of
may want to stimulate agricultural growth as an instru- public investment, PPPs must give all competent private
ment to address rural poverty and reduce increasing partners an equal opportunity to compete for the
income disparities in a society (equitable growth). It may business opportunities supported. Setting priorities for
want to protect specific natural resources and future funding, selecting partners and programs, allocating
livelihood systems (such as forest products for tradi- resources to partnerships, implementing and monitoring
tional medicine), support specific vulnerable groups (by partnership programs, and all other decisions must be
improving labor conditions, promoting pro-poor transparent.
growth, or improving gender equity). It may want to bol- ■ Sharing risks and responsibilities. In PPPs the commit-
ster national food security. ment of partners is generally demonstrated by an appro-
■ Mutual benefits. As discussed, all partners must benefit priate sharing of risk and responsibilities. A major differ-
sufficiently from the partnership to honor their commit- ence between PPPs and traditional public contracts such
ments for as long as required. The public sector benefits as infrastructure contracts is that the participating pri-
if the PPP proves to be effective and efficient at generat- vate companies contribute financial and/or human
ing the desired public goods. Benefits to the private resources (for example, through cofinancing, matching
sector can be indirect (for example, its participation will funds, and other arrangements).
The economic effects of public-private partnerships also important for determining whether PPPs are the
(PPPs) can be very large. For example, many govern- right instruments for achieving certain objectives (for
ments responded to skyrocketing energy prices by example, taxes or regulations could be used instead of
launching programs to generate and support innova- PPPs to induce compliance with social or environmen-
tions in renewable energy. Some of these programs tal goals).
related to biofuels have had far-reaching consequences Policy-level evaluations of PPPs can also determine
for agriculture and food production that remain con- whether more extensive policy measures might be war-
troversial and are not yet completely understood. ranted. For example, the China Agricultural Technology
Another example of the economic effects of PPPs comes Transfer Project supports a number of PPPs with private
from China, where the government promoted PPPs companies to develop and test new technologies for
(among many other strategies) to develop a modern manure treatment. Cattle manure treatment plants of
dairy industry. The result was an enormous overstimu- different sizes, using different fermentation processes,
lation of milk production. The subsequent collapse of are being tested in Heilongjiang Province; special tech-
the dairy market and bankruptcy of many producers nology to treat duck manure was developed in Anhui
was accelerated by scandals over contaminated milk but Province. Aside from introducing and testing technical
was probably inevitable, given the inappropriate level of solutions, partners in these projects are analyzing their
market interference. commercial and financial parameters to learn, for exam-
Most PPPs will not have such vast economic effects, ple, how the competitiveness of the livestock industry
because they are small and locally confined, but the would be influenced if manure treatment were to
positive or negative macroeconomic and policy impli- become mandatory. In other words, aside from stimulat-
cations even of small programs should be analyzed ing technical innovation, these PPPs are preparing the
and understood. Policy-level M&E and analysis are ground for decisions about future policy measures.
Source: Author.
Innovation Funds
Josef Ernstberger, Consultant
Riikka Rajalahti, World Bank
381
technology transfer and adoption, private economic activ- give grants to reduce the high costs of production caused
ity, and overall innovation, often by including multiple by their absence.
stakeholders. By focusing greater attention on demand and ■ The lack of economies of scale. No single enterprise is
use from the very beginning, basically by attracting users of large enough to make the lumpy investments needed to
technologies and knowledge in partnerships (and requiring overcome this problem. In this case, grants do not auto-
a matching commitment), MGs may be more effective than matically help, although it may help for governments to
CRGs at enhancing the use of technology and knowledge by support collective action for making lumpy investments.
farmers and other entrepreneurs. Funds from the granting ■ High risk, arising (for example) from the long gestation
organization (usually a public agency) are matched with periods for certain investments, political instability, lack
funds from the beneficiary. Table 5.4 compares the three of transparency in government policy, or natural disas-
financing modes. ters. Private insurance schemes can handle some risks,
The use of MGs in particular warrants caution. They and governments should first deal with any deficiencies
should be used for public good investments, such as gener- in their own policies and performance before consider-
ating technical or institutional innovations with positive ing grants.
economic, social, or environmental externalities or revers- ■ High costs of protecting property rights. In general, gov-
ing market failures. They can thus be used for addressing ernments should establish and protect property rights
knowledge gaps and reducing the risk for investment when and provide subsidies (grants) only where the costs of
the market fails to produce a necessary or desirable good, enforcing those rights are too high.
but at the same time other public sector instruments may be ■ Lack of commercialization of the economy. In such an
more effective and less costly. economy, the development of financial services is espe-
The following list indicates when grants may or may not cially slow. Grants should not be used in these cases for
be a good choice (van der Meer and Noordam 2004; Dono- subsidizing credit, but they may be justified for training,
van 2006): developing management information systems, or helping
to expand rural outreach of credit providers and install
■ The lack of public goods such as infrastructure, legisla- new technologies.
tion, or information. In this case, the appropriate solu- ■ Lack of technology, information, or trained staff. Grants
tion is to invest in these public goods. It will not help to may be useful to solve these problems.
Table 5.4 Comparison of Competitive Research Grants (CRGs), Matching Grants (MGs), and Core (Block) Funding
Issue CRGs MGs Core (block) funding
Primary Basic, strategic, and adaptive research – Demand-driven, near-market technology Long-term strategic
objectives (and extension) development, dissemination, and adoption research and
and activities and overall innovation processes institution building
– Private sector activity, including agribusiness and strengthening
and productive partnership creation
Key stakeholder Primarily research system actors, increasingly Farmers, private sector, NGOs, research Public research
also private sector institutes, extension services, other service organizations
providers based on objective
Capacity – Requires a critical mass of staff and a steady – More flexible with capacity requirements Little additional capacity
requirements operational budget to allow true competition of participants or the administrative burden required
for success and result in improved research quality – Business understanding, ability to partner,
– Capacity to compete and administer and monitoring and evaluation requirements
(including technical review) crucial for success great
Cost sharing Limited, due to ownership issues High for demand-driven activities Limited to in-kind
resources
Overhead and Significant, due to management and monitoring Varies; can be significant depending upon the Low or nonexistent
transaction and evaluation degree of decentralization of the program
costs and the overall purpose and actors involved
Incentives for Fair, depending on criteria High Limited
partnership
Sustainability Limited unless complement long-term funding Limited unless complement long-term funding High
Box 5.10 Getting the Most from Matching Grant Schemes: The Turkey Technology Development Project
Perhaps the most notable legacy of the Turkey Technol- In 1992, TTGV began to cofinance R&D subprojects
ogy Development Project (a US$100-million project in the private sector with the assistance of the World
approved in 1991) was the construction of the Tech- Bank. Proposals were solicited twice yearly. Of 273 pro-
nology Development Foundation of Turkey (TTGV). posals submitted by April 1998, 103 (37.7 percent) had
The Foundation provided funds for Challenge Pro- been approved for funding. The funded projects
grams, which stimulate applied research and technol- elicited US$99 million in funding—US$44 million
ogy development by industry through a mix of match- from TTGV and the remainder from private matching
ing grants, income notes, and conditional loans. TTGV funds. The majority of the approved subprojects (84)
stimulates private investment in the development of were for technology development; 67 of these sub-
industrial technology by providing seed capital (match- projects had concluded by the time the project’s Imple-
ing funds) for market-driven research and develop- mentation Completion Report was submitted in 1998.
ment (R&D) subprojects in a host of critical industrial A large majority of subprojects funded through those
sectors, including agro-industry. grants succeeded technically as well as commercially.
Box 5.11 Colombia Productive Partnerships Project: Incentivizing Market Inclusion through Matching Grants
The Colombia Productive Partnerships Project creates was terminated only in 13 percent of partnerships.
favorable conditions for large buyers and small sellers A particular set of incentives, infrastructure, and mar-
to establish mutually beneficial and sustainable rela- ket conditions is needed to create and sustain well-
tionships. It offers matching grants to complement functioning, productive partnerships. The key lessons
producers’ own resources and/or funding from other for success were:
sources (local governments, municipalities, commer-
cial partners). Producer organizations use the grants to ■ A stronger producer organization yielded a more
obtain technical assistance and build their capacity (for successful partnership. Social cohesion and business
example, to meet quality standards, bargain, or skills were difficult to achieve and are emphasized
enhance their entrepreneurial and negotiating skills). more strongly in the second phase of the project.
Through the grants, producer organizations gain the ■ A rigorous, transparent, and competitive selection
ability and incentives to invest in collective goods such process ensured the credibility and integrity of the
as storage facilities and packing facilities. The grants grant scheme.
also enable individual small-scale producers to invest in ■ Technical service providers as facilitators were fun-
productivity-enhancing infrastructure and gain startup damental to building trust with the commercial
capital to meet buyers’ requirements. The types of part- buyers.
ners have varied: over half have been food processors, ■ Management and support of partnerships should
one-third wholesalers, and the remainder supermarkets be outsourced to local service providers at the end of
and retailers (for domestic and international markets). the project.
By the end of the project’s first phase, of 136 part-
nerships financed initially, 118 were sustainably oper-
This project was the first World Bank project of its
ating in a wide range of markets. The average income
of small-scale producers had increased by 77 percent type in Latin America and the Caribbean. Since its incep-
and their employment by 70 percent. Success varied, tion, similar projects have been initiated in Brazil, Bolivia,
but the relationship between the buyer and producer Guatemala, Honduras, Jamaica, Panama, and Peru.
Do not just finance research; strengthen the capacity the strong and the weak. Competition between alter-
of research organizations. Competitive funds can be an native service providers breaks down when the range of
important vehicle for financing research, piloting new providers is limited and many potential providers lack
ways of working, or focusing research on new topics, the skills to prepare viable proposals.
but they are most likely to make a sound and lasting The competitive model itself has not spurred large
contribution when they complement a relatively strong growth in the role of the private (for-profit) sector as a
public sector framework for research. Public funding is provider of agricultural research and extension, but it
essential for agricultural innovation systems. Private has contributed to the broader process of private sec-
funding complements rather than substitutes for tor development. Commercial firms have played a
higher levels of public funding. smaller role as providers relative to public and private
To compete for funding, research institutions nonprofit agencies. To the extent that commercial firms
require a minimum core budget and critical mass of have played a role, they have largely done so outside the
staff. All institutions need some core funding to main- framework of competitive grant schemes. On the other
tain and improve their physical and human resources. hand, under the competitive schemes, through the
The sustainability of the public research apparatus and medium of subproject copayments, producers have
competitive funding alike will depend on continuous provided private funds as a complement to public sec-
public funding. Grants usually fund operating costs tor grants; they have received training in the prepara-
over two to three years. A grant model is unlikely to tion of business plans; and they have become more
flourish in a climate of fiscal austerity because there is market-oriented owing to partnerships with producer
only limited scope for private funds to substitute for associations that have been facilitated by competitive
public money. funding agreements. In this sense, the competitive fund
The competitive fund model is more likely to model has contributed to the broader goal of private
strengthen the strongest agencies providing research sector development without entailing a major role for
and extension than it is to reduce disparities between commercial firms as service providers.
Source: Authors.
BACKGROUND AND CONTEXT Box 5.14 Services That Incubators Can Provide
388
Table 5.6 Business Incubator Typology and Overview
Context and features Strengths (broad) Challenges (broad)
Mixed portfolio business incubation
– Targets high-growth firms in a range of – Can align with regional and national strategies, – Where new competitive sectors are under
sectors germinate new areas of competitive capacity, development, time to achieve impact and
– May select sectors that align with the and provide a locus for innovation in this scale may be long
overall regional or national regard – Where there is little entrepreneurship,
competitiveness strategy – In environments with little entrepreneurial attracting clients with high growth
– May exist in environments with little activity, may include extensive “pre-incubation” potential can be a challenge; it may not be
entrepreneurial activity and education to source entrepreneurs and possible to operate at the scale necessary
businesses to support the incubator’s business model
Technology business incubation
– Targets high-growth technology firms – Can be an economic resource by attracting – May be challenging to scale businesses
– Requires foundation of strong technology and developing research, skills, and businesses beyond seed stage because of lack of
and human capital infrastructure – Can develop technology as a new source of financing and difficulties entering
– Where this infrastructure and human competitive capacity international markets
capital are weak, may require extensive
pre-incubation activities
– May exist in economies in transition
Business incubation with university relationships
– Frequently the university or academic – Opportunity to bridge the gap between – Can create “cultural” tensions if academics
institution has a role as founder and is research and commercialization or seen as good researchers but poor
a source of resources such as research, technology transfer managers or if the university is seen as
expertise, space, and/or funds – Access to intellectual property and the too bureaucratic or risk-averse
– Typically targets technology firm, potential to develop competitive businesses
but may work with other sectors from it
– Often provides financial stability for incubators
Agribusiness incubation
– Targets firms in the agricultural sector – Can often have significant economic and – Requires both business and community
– Aim is to commercialize innovative social impact by improving the livelihoods of development skills
practices or transform sector firms from communities – May be challenging to enter markets
slow growth to growth – Can have an agritechnology focus and focus beyond local communities
on commercialization
an overview of the types of business incubators that can be ■ In a mixed-portfolio model, the incubator will incubate a
deployed in different markets. business in any sector, pursuing any business activity
from technology to agriculture, as long as it believes that
the business is scalable. (Scalability is key to ensuring that
INVESTMENT NEEDED
the incubatee will be able to pay for rent, services, and
The incubator must be designed based on market demand, possibly royalties.) A mixed-portfolio incubator is often a
which is reflected in a detailed ten-year business model that more appropriate choice in developing countries, because
outlines how the incubator will be sustainable. In estab- the pool of scalable SMEs in a specific sector is limited,
lishing a business incubator, the main issues and areas of and a sector-specific model is not viable without a sub-
investment include selecting the appropriate model, estab- stantial and ongoing subsidy. For examples, see Fundación
lishing a successful management and governance appara- Chile, which is a unique, one-stop business incubator, and
tus, and accumulating the appropriate physical assets.2 Technoserve of Mozambique, which leverages BDS to
The broad choice in selecting which type of incubator to transform entire sectors (infoDev 2011).
develop is between a mixed-portfolio incubator and a sector- ■ A sector-specific incubator is appropriate if there is a
specific incubator, such as an incubator for technology or sufficient pool of clients (incubatees) and demand for
the agricultural sector (subsector) (table 5.6). For the agri- agribusiness development. It will be important to lever-
cultural sector, both models can be relevant and can support age other actors in the sector, including well-established
businesses that provide services, products, or new technolo- enterprises that can be potential clients for the enter-
gies contributing to agricultural innovation. prises being incubated. For examples, see box 5.20 on
Revenue from tenants and other clients. Rent (40–60+ This model can help ensure the incubator’s sustainabil-
percent) is the most common source of revenue in this ity while aligning both the incubator and client busi-
model, but fees for the business support provided ness to growth of the business and its revenue. The
(business incubation fees) and for the use of facilities model requires stakeholders to have a long-term vision,
and other services can be just as important. Hot-desk- because it can take ten years to develop revenue streams
ing fees (renting a desk and computer connected to the that will sustain operations into the future. The model
Internet by the hour) can be important for broader also requires managerial sophistication, a well-
incubation models. This model is financially self-suffi- developed business environment (to form and protect
cient, given that the incubator relies on “free” buildings, an investment), and functioning capital markets (if it
has minimum economies of scale, and often has anchor relies on brokerage fees from finance raised).
tenants. Ongoing government or donor funding. A long-
Revenue from sharing in clients’ success. This term commitment from government, a donor, and/or
model is based on small equity positions or royalty other organization finances the incubator. This model
agreements on gross sales and brokerage fees on raising is potentially risky, because it has no additional revenue
finance. For example, ParqueSoft in Colombiaa requires streams. If funding is discontinued, the incubator is
clients to pay 20 percent of their sales as commission. likely to close.
The Agri-Business Incubator@ICRISAT (ABI), launched tion, with a focus on seed ventures, biofuels, and
in 2003, estimates that its various programs have bene- farm systems solutions.
fited more than 40,000 farmers. ABI is an initiative of ■ Technology commercialization. ABI is a platform
the International Crops Research Institute for the Semi- for commercializing technologies developed by
Arid Tropics (ICRISAT) in partnership with the Depart- public institutions through the creation of agribusi-
nesses. ABI also facilitates the commercialization of
ment of Science and Technology (DST), Government of
technologies and services that have been developed
India. It promotes technologies developed exclusively by
by entrepreneurs and benefit the agricultural sec-
ICRISAT, jointly developed with collaborators, or agri- tor. Products and technologies incubated by ABI
cultural technologies developed by R&D centers of include sweet sorghum for ethanol production,
excellence, universities, and other institutions. ABI insect-resistant transgenic cotton, and pesticide-free
develops agricultural enterprises by providing various crops produced through organic farming.
services and facilities: ■ Services and facilities. ABI offers technology con-
sulting, business development, and training services,
■ Entrepreneurship development. ABI offers entre- as well as office space, laboratories, and agricultural
preneurs support from concept to commercializa- land to test new technologies and services.
Source: Agri-Business Incubator@ICRISAT.
The Rutgers Food Innovation Center, based in New capabilities, enter new markets, train their workforce,
Jersey, provides business and technology expertise to and expand and improve their operations.
small and midsize food and agribusiness companies in ■ Retail and food service establishments seeking to
the Mid-Atlantic and Northeast regions of the United improve their operations and purchase locally
States and, through its outreach capacity, to food and grown New Jersey products.
agribusinesses throughout the world. The Center cre- An extensive feasibility study in 1999 helped iden-
ated over 1,000 new jobs by incubating new businesses tify the prospective client base. The center developed
and over US$200 million in revenue growth for clients, a detailed business plan based on significant primary
in addition to millions of dollars in local tax revenue. It and secondary market research, a national bench-
has assisted more than 1,200 companies and entrepre- marking study on best practices in food business
neurs since it began operations in 2000, including: incubation, a comprehensive strategic plan, and a
seven-year financial pro forma. Based on this plan,
■ Farmers and agricultural cooperatives desiring to the Food Innovation Center began operations in
create new businesses based on value-added agricul- 2000. A very important consideration was that the cen-
tural products and/or developing new markets for ter did not begin its program with a dedicated facility
their existing commodities. but held back until its program was fully developed.
■ Startup food companies coping with challenges The center operated out of a rented office for eight
such as financing, technology, regulations, market years before moving into a full-scale facility. During
development, and infrastructure requirements. this period it tested its model, fully developed its pro-
■ Existing small and midsize food companies seeking grams and services, gradually hired staff, and estab-
to access new technologies, upgrade quality assurance lished a network of resources to meet the needs of a
broad clientele. It ensured that sufficient demand and analytical support from concept to commer-
existed for its services before investing in a building cialization. A Shared-Use Processing Area uses an
(funded entirely through grants). array of food-processing technologies to produce a
The Center’s facility consists of a Client Services broad range of value-added agricultural and food
Area, where clients receive marketing, development, products.
Source: Rutgers’ Food Incubator, http://www.foodinnovation.rutgers.edu/incubatorlinks.html.
Figure 5.1 Financing Gap for Small Enterprises assistance, only office space is required. If the incubator
also provides office space and shared equipment (office
Problem areas: banks do not
US$ lend easily and the money equipment and agricultural processing equipment, for
(‘000) required is too small for the
venture capitalists to consider example), it needs an appropriate space to house them. If
Second
3,000 expansion the incubator plans to offer access to the latest agricultural
information and/or to enable virtual mentoring and col-
First
1,000 expansion laboration between enterprises, it will need the appropriate
IT equipment. For an example, see box 5.21.
Development
Early
stage
500 Lessons from financing arrangements
Colombia’s network of ParqueSoft Centers comprises largely self-sustaining, though it must seek grants and
14 incubators situated throughout the country and contributions in addition to revenues. Its growth to
managed from a headquarters in Cali. The founder is a 14 centers proves it is scalable, and it has required very
highly charismatic individual who used his expertise limited public sector support other than real estate.
in information and communications technology to The ParqueSoft brand is known internationally and
establish ParqueSoft and promote social development is associated with high-quality services. An association
through business creation. More than 270 businesses with ParqueSoft allows the startup companies to obtain
participate in ParqueSoft. These interlocking business larger contracts that are effectively subcontracted to the
entities provide internal as well as external consulting, member companies. The use of cubicles in ParqueSoft
marketing, and training support. Member companies buildings permits more intense networking and inter-
pay a 20 percent commission on each sale to ParqueSoft, action by the companies. Although this setup builds the
which also receives grants, in-kind donations, rents, and ParqueSoft brand and makes each company seem com-
service fees. This revenue allows ParqueSoft to pay for petitive with larger, more established companies, it
advertising, maintain its building in Cali, and cover should be pointed out that it also diminishes the efforts
other overhead expenses. Local universities provide of individual companies to establish their own identi-
office space in each location except Cali. ParqueSoft is ties and brand equity.
accommodation. They run the risk of either failing finan- companies or for locations where exit mechanisms are
cially or having to cut costs until they are really nothing unclear. In that case, royalties may be a better approach.
more than real estate operations. More commonly, business Business models that rely on sharing clients’ success have
incubators attempt to rent buildings at a purely symbolic proven somewhat problematic. Returns from the equity posi-
rate (for example, US$1 per year) or to obtain funds to pur- tion, royalties, and brokerage on finance cannot be relied
chase or construct their own facilities, both of which are upon for financial sustainability in the short term. It can take
more reliable strategies for securing on-going support. ten years to realize returns, and a portfolio of at least 20 com-
Taking a small proportion of equity or a royalty on gross panies is required to spread the risk. A high level of manage-
sales for a period can be a very good way for an incubator to ment expertise is also required.
receive payment for its value-adding services once the com- Aside from a sound financing model, incubators need to
pany being assisted has succeeded (not up front, when the “walk the talk” and demonstrate high levels of financial man-
company is short of cash). This success-sharing strategy agement capability to incubated enterprises. Financial man-
aligns the business incubator’s mission with that of its agement consists of planning, overseeing, and controlling
clients. Increasing numbers of technology incubators take a the incubator funds, whether they are brought in through
small equity position or negotiate royalty agreements as a services or provided by partners and investors. Mechanisms
condition for membership in an incubator. Realistically, tak- need to be developed that allow the incubator manager to
ing equity applies only to high-growth and generally intel- know accurately the amounts available, the needs, and the
lectual property-driven companies, in situations where clear investment capacity. Additionally, financial management
exit mechanisms (such as initial public offerings or trade should focus on bringing in new sources of funds for the
sales) exist. This option makes little sense for most service incubator.
Agricultural Clusters
Florian Theus, World Bank Institute
Douglas Zeng, World Bank
396
networks. Given that developing countries have very limited ENABLING INVESTMENTS TO SUPPORT
financial resources, selectivity and efficacy are important AGRICULTURAL CLUSTERS
guiding principles of competitiveness strategies. Focusing
The cluster approach involves many actors whose roles are
on a cluster approach mirrors these principles, helps in scal-
always evolving, which makes the role of the state complex
ing up to the industry level, and fosters regional innovation
and location specific. Roles of the public and private sectors
systems. A value chain may be too narrow a domain when
are becoming increasingly blurred. The private sector in
the surrounding innovation ecosystem is underdeveloped.
many developing countries is providing quasi-public
On the other hand, the national innovation system may be
goods, such as training smallholders in the use of technol-
too broad a domain, and its top-down approach (unlike the
ogy, instituting quality control, or providing finance
bottom-up approach possible with a cluster strategy, dis-
(Larsen, Kim, and Theus 2009). Cooperation and collab-
cussed in “Lessons Learned”) would increase the risk of
oration schemes have been implemented in virtually all
making mistakes on a large scale.
spheres that originally might have been the domain of the
public sector (see the discussion of PPPs later in this note).
Clusters versus value chains Three broad areas of investment are commonly needed
While a value chain approach2 can be used in the absence of to support the development of agricultural clusters. They
a cluster approach, value chains must be supported for a clus- include investment in infrastructure and the policy envi-
ter approach to work. Cluster development and value chain ronment, investment in a regulatory framework, and
enhancement must go hand in hand if a cluster aims to pro- investment in formal and informal institutions (and their
mote innovation-based competitiveness in developing coordination).
countries, where (1) value chains are often very unstruc-
tured throughout their segments (transportation, distribu- Importance of improved infrastructure
tion, enabling environment), thus requiring intervention by and policy environment
numerous stakeholders who cannot resolve these problems
alone; (2) trust among stakeholders is weak, and a special Cluster programs and investments are effective only where
effort is needed to build social capital; and (3) obstacles minimum conditions of macroeconomic and physical stabil-
need to be addressed by multiple stakeholders and value ity, hard and soft infrastructure for doing business, and basic
chain segments (USAID 2008). institutions for supply-side functions are met. Government
plays an important role in this regard, often supported by
donors. Economic reforms such as deregulation of domestic
Spontaneous versus orchestrated clusters
markets, removal of explicit and implicit trade barriers,
The most dynamic clusters spring up spontaneously, with- ending distortions in exchange rates and taxation, as well as
out direct intervention by external actors (McCormick and the development of a sound property rights regime are some
Mittulah 2005). On the other hand, agricultural clusters in of the measures that need to be taken. For instance, the
developing countries may be fostered by local and/or Kenyan cut flower cluster succeeded owing to the enactment
national government as well as donor support. of legislation setting up promotional schemes (such as man-
In supporting the transformation of clusters into inno- ufacturing under bond, export compensation, and export
vation systems, evidence points to the importance of com- promotion zones for horticultural exports), protecting intel-
plementary policies, programs, and financial mechanisms lectual property rights, and enforcing quality standards
that can foster new linkages and create opportunities for (Zeng 2010). The public good character of infrastructure—
sustained growth. Where these links and opportunities are especially the transport, hygiene, and cooling facilities criti-
not established, stagnation and decline in the face of crisis cally important for many food products—makes govern-
and challenges often followed (Zeng 2010). Regulatory ment and donor involvement imperative.
frameworks and extension agencies also play important
roles in agricultural cluster development.
Regulations, quality assurance, and standards
It is obvious that cluster development is a long-term,
multifaceted approach that is unsuited to short-term invest- Local governments often try to improve services and regu-
ment projects. External support is often provided during lations in ways that help to generate business, enable clusters
later phases of cluster development, when clusters have to operate normally, and maintain dynamic growth. In
demonstrated their potential. addition, governments enact specific regulations, especially
Generating and accessing financial resources. Learning and training. Various industry-specific modes
Throughout developing countries, the lack of financial of learning and training—formal and informal—are
Line ministries
Business
Business associations
registrar Lawyers
Export
promotion Arbitrators
R&D
Industrial zones
The South African wine industry has grown signifi- a key coordinating role as the hub of an extensive
cantly since the early 1990s in an extremely competitive network of industry actors and scientists and techni-
global market. Exports rose from 20 to 177 million liters cians from the universities and ARC. Winetech serves as
between 1992 and 2002. Over the same period, table an advisory council to the South African Wine and
wine production increased by 33 percent. This phenom- Brandy Company (SAWB), a nonprofit company that
enal change came about through a combination of insti- represents wine producers, workers, and wholesalers. It
tutional, structural, and market factors. has an explicit commitment to enhance the competi-
Two policy initiatives underlay the wine cluster’s tiveness of every aspect of the industry through innova-
success. First, the abolition of the quota system precip- tion. SAWB designated the private organization Wines
itated a shift toward varieties for which global demand of South Africa (WOSA) to act on behalf of some 320
was increasing. Incentives promoted extensive new South African wine exporters to promote South African
planting and replanting. In 2002, 37 percent of vine- wines internationally. The competitive realities of the
yards were less than eight years old, and grape quality global market reinforced the roles of SAWB and WOSA,
had increased. Second, broad macroeconomic policies because marketing the country’s brands had become
aided the growth of the cluster, including the liberaliza- too big of a job for individual firms.
tion of agricultural trade, deregulation, land reforms, Greater cooperation and collaboration among pro-
reduction of direct subsidies, and the introduction of a ducers and other institutions increased innovation and
minimum wage for farmers. helped to overcome market imperfections and inefficien-
South Africa’s wine producers can be divided into cies. Innovation altered marketing, wine-making
four segments: established producers, new producers, processes, the choice of varieties, and production
cooperative producers, and wholesalers (some of which practices. Producers exchange knowledge through viti-
produce wine in addition to their primary role of mar- cultural and vinicultural forums, a root-stock association,
keting, sales, and distribution). Technical support came two varietal associations, Winetech, and the Elsenburg
from the Agricultural Research Council (ARC), which is Training Institute. Extensive use of local and interna-
partially funded by the state. The Wine Industry Net- tional consultants and information about international
work for Expertise and Technology (Winetech) plays market trends was a key component of success.
Source: Wood and Kaplan 2006.
Box 5.23 Environmental Challenges for Cluster Development: Examples from Kenya and Tanzania
Kenya cut flower industry (a scale challenge). Kenya’s cut munity, heightened competition, and an ineffective regu-
flower industry needs water, but the extent to which the latory regime threatened to transform Lake Victoria into
cluster around Lake Naivasha would evolve was not fore- an open-access resource, with dire consequences for fish-
seen. Horticultural farms in the lake region have ers’ livelihoods, fish populations, and the quality and
encroached on riparian ecosystems, leading to pollution quantity of lake water. Through efforts by the govern-
and excessive withdrawals of water from Lake Naivasha. ment, international organizations, and civil society, all
The lake continues to recede, with a concomitant loss of stakeholders have been involved in managing the fisheries
aquatic life, threatening the livelihoods of local fishers resource. Fishers have been involved in planning and
and the food supply. The challenge is to guarantee the managing fisheries, which is expected to increase their
necessary inputs into production on a sustained basis access to Lake Victoria fisheries and help reconcile the
while limiting environmental externalities. potentially conflicting goals of sustainable fishery man-
Lake Victoria fisheries (a common-pool resource agement and the livelihoods of communities that catch
challenge). A combination of poverty in the fishing com- fish using improper gear and methods.
After fish exports from Uganda were banned by the provided technical assistance to the government for
European Union owing to concerns about bacterial timely and effective communication with the European
contamination, the government, donor agencies, fish- Commission. It identified and paid private consulting
processor association, and private firms worked firms (based in Europe) to strengthen the audit systems
together closely and swiftly to help the industry improve of the government’s Department for Fisheries Resources
its processing practices. Standard operating procedures and train fisheries inspectors as well as quality assurance
were devised for inspectors, and a voluntary code of managers across all firms that processed and exported
conduct on good manufacturing principles for fish- fish. The Lake Victoria Environmental Management
processing firms was established through the Uganda Program, supported by the World Bank, provided duty
Integrated Program of the United Nations Industrial allowances, transportation, and other logistical support
Development Organization (UIP-UNIDO) and the critical to implement the revitalized inspection and law
Uganda Fish Processors and Exporters Association. UIP enforcement system.
Both the provision of incentives and direct facilitation Developing capacity in relevant institutions
(often funded and implemented by the public sector) seem through technical assistance. As the discussion has
to be of value in cluster development. indicated, institutions, public and private, are crucial in
Incentives for joint action can take the form of tax agricultural clusters (figure 5.2). Through targeted pro-
deductions for dues paid to business associations, access to grams, training (including study tours), and sharing inter-
infrastructure, or financial resources for firms agreeing to national best practices, donors play a vital role in strength-
work together. In Cambodia, a PPP for food processing sup- ening institutions and promoting cluster development. For
ported by GIZ enabled five companies producing mineral example, donor support can improve the capacity of state
water, ice, and soy sauce to upgrade their manufacturing agencies in monitoring and enforcing quality standards, as
facilities, machinery, and technology. To receive financial seen in the example from Uganda in box 5.24. Donors’
and technical support, the companies agreed to invite inter- involvement may be necessary to help incipient producers
ested SMEs to visit to exchange knowledge, skills, and expe- meet complex international standards. Buyers cannot play
riences. As a result of this induced knowledge sharing, there this role, because the standards embody specialized knowl-
was more demand than available spots to function as lead edge that most buyers do not possess (McCormick and
companies, and collaboration in the cluster and industry Mittulah 2005). Adding capacity to an enforcing institution,
intensified.11 and making sure the respective officers (and possibly some
Creating value along the supply chain and enhancing col- critical buyers) gain the necessary knowledge of sanitary
lective efficiency in the cluster requires trust among all stake- and phytosanitary measures, appear to be vital components
holders. Direct facilitation by the government and other organ- of cluster development and value chain enhancement in
izations, including donors and NGOs, is often needed to developing countries.
stimulate and sustain joint action among key cluster agents Donors can also strengthen the intermediary institu-
(box 5.25). The “honest broker” role is essential, especially for tions (such as professional and business organizations) that
uniting small producers and linking buyers and sellers. On the act as important mechanisms for tapping into foreign
other hand, project staff must ensure that stakeholders even- knowledge, coordinating activities in a cluster, and lobby-
tually assume this role themselves in the interest of sustain- ing government. Successful efforts to build capacity have
ability. Experience indicates that trust can be established more focused on creating a service mentality, training staff,
effectively by creating a flow of successful small activities establishing proper financing schemes (such as a fee struc-
(training, initial transactions between small and large produc- ture), and providing key business organizations with the
ers, and so on) that lead to more significant transactions, such necessary infrastructure (including a website). In extension
as joint exporting (USAID 2008). systems, donors add capacity by training officers to use new
Successful joint action for cluster development and alle- together. The project helped them to set clear expecta-
viating rural poverty occurred under the United States tions and develop a realistic understanding of the finan-
Agency for International Development’s (USAID’s) cial returns to cooperation. It educated participants
Vende (“Sell!”) project in Paraguay. In 2003, sesame about the value chain and players involved. Its emphasis
processors in north-central Paraguay were receiving on increasing sales constantly reminded people that they
orders from Japan and Korea that they could not fill, were working toward a mutually rewarding goal. After
because regional suppliers could not provide the right two years, sesame production had doubled in Paraguay.
quantity and quality of raw, industrial-grade sesame. Exports for the four processors involved in the program
The processors required a type of sesame that could be rose by approximately US$8 million. Thousands of
harvested only by hand. Some processors considered farmers in Paraguay’s impoverished north-central zone
moving their facilities to other countries. Although and elsewhere increased their incomes by growing a
sesame farmers and processors distrusted one another more viable cash crop. Vende technicians are building
and had never collaborated closely, Vende brought them local capacity to ensure that these efforts are sustained.
methods to explain and demonstrate appropriate technol- capacity, linkages, and human capital, for example), the
ogy for cluster firms. In credit institutions, donors can add activities to support the cluster (these can be private or
capacity by improving credit checks; the financial capacity public initiatives or donor programs), and the finance and
of firms will improve if they learn how to write business funds available. The evaluation should also be designed to
plans. Donors may also assist in developing innovative capture lessons on process. Results of cluster initiatives may
financial services and credit schemes for banks. not mature for a long time. To deal with the inherent chal-
Technical assistance has strengthened institutions and lenges, it could be useful to devise an M&E assessment
promoted cluster development by establishing national similar to the management effectiveness tracking tool used
standards based on international food standards such as by the Global Environment Facility.12 The tool categorizes
GlobalGAP. A cluster’s competitiveness and capacity to indicators by context, planning, inputs, processing, out-
innovate particularly benefits from programs that link firms puts, and outcomes, all of which are relevant to agricul-
within value and supply chains in ways that benefit all actors tural cluster projects. Instead of absolute values, a score is
involved, including small-scale, geographically scattered used, so results can be plotted to facilitate comparison
producers. Subcontracting schemes are a particularly suc- (for example, across agricultural clusters). The tool can be
cessful way to link small-scale producers with processors applied as a self-monitoring and external monitoring
and buyers. They ensure reliable, better-quality production tool, and it gives immediate feedback and suggestions for
for buyers and access to credit, training, and economies of improvement.
scale for producers. Apart from tracking process and results through a sound
M&E system, a good governance framework is needed to
Monitoring and evaluation. Cluster M&E begins by minimize the risks associated with government failure
mapping three main areas that require monitoring: the related to misinformation or capture by the industry/
resources of the cluster (natural resources, firm absorptive cluster.
406
partnership achieves its objectives and that both parties as well as a critical mass of research assets and expertise in
receive appropriate recognition for their proprietary contri- technology transfer.
butions. Developing this capacity is not easy and typically
requires both educational as well as institutional investment.
INVESTMENT NEEDED
This thematic note explores the steps in developing that
capacity in public research institutions by establishing a An effective technology transfer program or department,
technology transfer office (TTO) to assist in the legal trans- based on a proper assessment and policy alignment (see
fer of technology. Investing in and building institutional “Lessons Learned”), requires major investments. The most
capacity for technology transfer within a public organiza- important are staff, infrastructure, capacity, and governance.
tion may cover a broad range of activities. These activities
may include the protection and licensing of IP but are more
Staff and site
likely to focus on the support of public/private partnerships,
the development of business strategies, or the transfer of A TTO will require a general director or manager (usually a
tangible property directly to commercial channels such as scientist with extensive business experience rather than a
seed companies or agricultural or veterinary product sup- lawyer) who is at a minimum responsible for business devel-
pliers. These activities share a range of skills and experience opment, communication, and negotiation. The office will
related to an understanding of intangible and tangible prop- also require administrative personnel. The physical assets
erty rights and transfers, of legal contracts and agreements, associated with a TTO can range from office equipment (IT,
and of business activities and strategies that are relevant for furniture, and so on), an IP library with access to online
the local region. legal databases, to real estate encompassing sufficient space
The technology transfer function may be addressed in for the TTO.
different manners and must fit local needs and resources.
The four main business models for TTOs are summarized
Minimum training and core skills
in table 5.7. For developing countries, a TTO operated
jointly among many institutions (a consortium/network Table 5.8 describes the minimum training requirements
TTO) may be the best solution to attain economies of scale for different groups in the institution and IP management
Table 5.7 The Four Main Technology Transfer Office (TTO) Business Models
Independent TTO
department within
an institution Network-based TTO Subsidiary company Outsourcing
When? When prospects for When individual institutions When research and resource Suitable particularly when
technology transfer and lack resources and critical base are sufficient but institution(s) generate
commercialization are mass (research base) institutional culture is not technology suitable for
high within one institution but institutional culture conducive for entrepreneurial high-value, income
and sufficient resources is conducive for activity generating opportunities
allow establishment entrepreneurial activity
Key benefits – Alignment with institutional Sharing of costs and – May encourage a positive – Minimizes investments and
associated objectives expertise perception of technology risks for the institution
with the – Revenue to institution transfer and demonstrate – More operational flexibility
option seriousness and the ability to structure
– More operational flexibility staff remuneration
and the ability to structure packages
staff remuneration packages
Disadvantages Investment requirements per Requirement for shared Lack of alignment with Overhead costs (fees) reduce
institution may be high procedures and institutional objectives and revenue to institution
agreements on revenue unresponsive to policy Less geared toward
sharing often challenging constraints of the institution technology transfer for the
such as publication or broader public good
conflict of interest
office. Technology transfer programs will need the monitoring technology developments and compliance with
capacity to develop business strategies around new tech- the terms and conditions of the option or license.
nologies. These strategies can serve as a tool to market
innovative technologies to existing companies or become
Reporting and governance structure
the basis for starting new companies to implement the
strategy. The secondary role of a TTO is to establish and A TTO requires reporting and governance functions. The
maintain connections to national and international TTO management will be accountable to a governing body
investment communities as well as to other providers of that may consist of faculty or research center members,
services for business development. These connections administrators, and external business leaders. An advisory
facilitate the development of startup companies to group from inside and outside the institution is expected
commercialize technology. The TTO will also need the to bring new experience to the organization and act as
ability to communicate—internally and externally—its internal and external champions.
aspirations and successes in technology transfer. Consis- Often a departmental TTO reports to a senior university
tent communication within the TTO is critical to develop staff member, whereas a TTO company will be responsible
and sustain a culture of entrepreneurship and engagement to a board, which may be chaired by a university senior staff
in the technology transfer process. member. Because the TTO represents a linking function
The TTO must have the core skills to manage IP protec- between a university or research institute and business,
tion and the capacity to negotiate and execute legal agree- governance and advisory arrangements to support both its
ments to transfer intangible and tangible property. The internal linkage to the university or research institute and
main functions of TTO staff include: (1) evaluating inven- its external linkage to the business community are impor-
tion disclosures and deciding whether to file patents or tant. The TTO can also become the “face” of the research
other forms of IP protection, (2) managing or monitoring organization to the business community and as such needs
patent prosecution, (3) developing, with business develop- to have strong governance and advisory relationships to
ment staff, a commercialization strategy, (4) negotiating and ensure that it maintains a high degree of integrity and
executing technology transfer agreements ranging from credibility with the outside. The TTO will be expected to
options to licenses, and (5) once an agreement is concluded, produce at least annual reports of activity which provide
Intellectual property (IP) is a relatively new legal and assigned, to Tsinghua University, unless another agree-
social concept in China. Formal legislation was intro- ment takes precedence. Under the university policy, at
duced in the 1980s and subsequently strengthened. least 25 percent of revenue generated by a piece of IP is
Universities now usually own the IP emanating from shared with the inventor(s) as cash or equity.
government-funded research, but technology trans- Tsinghua University spared no effort to educate its
fer and commercialization remain low. Most univer- faculty members and students about IP and the univer-
sities lack IP policies and independent offices for IP sity’s IP policy. It implemented procedures for examin-
management. ing collaborative research agreements and sponsored
Tsinghua University is an exception. Its IP Office research agreements between the university and other
develops IP policies and manages university IP, which institutions or companies, for which it designed a stan-
includes patents, trade secrets, know-how, trademarks, dard contract. A special fund covers patent costs, includ-
copyrights, and any related rights. The university’s IP ing application fees, examination fees, agency fees, and
policy clearly states what constitutes employee work. maintenance fees for the first three years after a patent is
The policy requires an investigator to disclose all results issued.
of a finished project to the administrative department, Together, these measures caused Tsinghua Univer-
which then decides whether to apply for a patent. If sity to own more patents than any other Chinese uni-
results appear to have commercial value but are not versity. From 1985 to 2000, Tsinghua University filed
suitable for a patent, they remain a trade secret. An 1,587 patent applications. Since 2001, the average
industry-sponsored research agreement must have a annual growth rate of the university’s patent filings has
clause on ownership of resulting IP, allocation of patent been 26 percent. In 2004, the university filed 43 foreign
costs, and sharing of revenue made from the IP, among applications (including Patent Cooperation Treaty fil-
other arrangements, and the IP Office examines the ings). The numbers of patents issued to the university
contract before it becomes effective. When a faculty rose from 121 in 1999 to 537 in 2004. Other universities
member or other employee goes to another domestic with a similar level of IP management include Peking
or foreign university or institute to conduct research, University (University of Beijing) and the Chinese
any resulting IP should be assigned, or at least jointly University of Technology.
Brazil has dramatically increased technology transfer commonly practices sponsored research. In such cases,
and innovation through Inova, the technology transfer ownership rights are normally split 50/50.
office established by the State University of Campinas Factors in Inova’s success include:
(Unicamp) in 2003 and the first technology transfer
office established in a Brazilian university. A multidisci- ■ Inova is driven by market demand. Instead of
plinary university with more than 31,000 students and selecting Unicamp’s technologies and offering them
20 research units, Unicamp pursues a variety of tech- to the market, Inova examines market demand and
nologies in many fields. By 2007, Inova had become the seeks solutions inside the university.
most frequent patentor and licensor in Brazil. In only ■ The technology transfer team comes from private
two-and-a-half years it signed 128 technology transfer institutions and has business skills. They are not
agreements, licensed 45 technologies to private compa- researchers.
nies and the government, and applied for 153 new ■ The government provides many incentives to com-
patents, 22 trademarks, and 24 software registrations. panies, such as tax benefits to companies that pay
Its technology transfer agreements will last for more royalties; tax benefits to companies that invest in
than ten years, and they have already generated research and development, within or outside the
royalties for the university ranging from 1.5 percent to company; compensation for taxes on royalties paid
10 percent of the net income from the licensed tech- abroad during the execution of technology transfer
nology. Unicamp grants inventors 33 percent of royalty contracts; tax exemptions for fees paid to maintain
and licensing income. The greatest contributor to the patents, trademarks, and cultivar registrations
patent and licensing portfolio is the Chemistry Institute abroad; and sponsorship/subsidy of 60 percent of
(48 percent); the corresponding figure for agribusiness the salary of a scientist hired by a company.
and food is 16 percent. Inova’s patent database is avail-
able online.
These coordinated efforts will increase patenting
Under Brazilian law, Unicamp owns 100 percent of
and technology transfer in Brazil, strengthen the rela-
its professors’ and researchers’ results. The law permits
public institutions to give up ownership to the inven- tionship between public institutions (where Brazilian
tor, but Inova has not taken this route; its inventors research is mainly concentrated) and private compa-
lack commercial expertise and find it more attractive nies, and contribute strongly to innovation. Other pub-
for Inova to commercialize the technology and give lic universities and research centers have been studying
the inventor part of the licensing fee. Unicamp also Inova’s model to emulate it.
Ownership. An institution’s intellectual property (IP) disclose possible inventions before publication, to assign
policy should clearly address who owns IP developed in ownership to the employer/institution, to assist in evalu-
the institution (for example, the inventor/researcher ation and patenting, and to report potential conflicts of
owns the IP; the research institution owns it; a company interest.
providing research funds owns it; the government agen- The institution’s obligations. The policy also needs
cies providing research funds own it; or no-one owns it, to clearly describe the institution’s obligations in man-
and all IP is committed to the public domain). In most aging IP. When the institution owns the IP, it typically
cases, institutions cannot manage IP effectively unless is required to manage IP effectively, to pay patenting
they own all IP developed within their walls regardless costs, and to share revenue with inventors. Of particu-
of funding source, but this condition may not always be lar interest to researchers is the actual share of revenue
possible. Whatever is decided regarding IP ownership, it that will go to the inventors, which can range widely
must be very clear to prevent any ambiguity over who from place to place but is typically 25–50 percent of net
has the legal ability to transfer technologies. revenue after expenses.
Researchers’ obligations. The policy needs to clearly Administering the policy. The policy should identify
describe the obligations of research staff. When the insti- who in the institution is responsible for administering
tution owns all IP, its researchers typically are required to the policy and procedures for compliance.
Source: Authors.
There are many approaches to invention evaluation. The professional networking, they may even know their
evaluation process lays the foundation for future deci- counterparts in industry (potential licensees) on a per-
sions about IP protection and marketing. sonal basis.
■ Determine whether to protect IP in the innovation. If ■ Once one or more industry partners are identified for
needed, secure funding for filing patent, trademark, or an innovation, negotiate legal contracts (license agree-
copyright applications, and manage the protection ments) with these industry partners to transfer IP rights
process. The challenge of securing funding for IP protec- in the innovation in exchange for royalties or other con-
tion internationally—especially when seeking protection siderations. The goal is to negotiate a fair arrangement
in highly industrialized countries, where the primary that facilitates and assists the commercial partner in suc-
markets for the expected products lie—is often over- cessfully developing and marketing the product, rather
whelming and perhaps even impossible in many devel- than simply seeking to negotiate the absolute highest fees
oping economies because of the tremendous expense. Yet and royalties in the agreement. Developing industry
there may be very small or nonexistent commercial mar- partnerships can lead to many unexpected benefits, such
kets for the innovation in the country of origin, which as sponsored research, student employment opportuni-
can present a serious dilemma. The only solution in ties, consulting opportunities, and even philanthropic
many cases is to secure protection in the country of ori- donations to the institution.
gin first, thereby “buying time” under the requirements ■ Maintain and manage administrative functions in sup-
of the Patent Cooperation Treaty to find a corporate port of the primary functions of IP protection and tech-
partner to pay the patent costs internationally as a busi- nology transfer. These functions can include accounting,
ness expense in the license agreement. royalty distributions, licensee performance management,
■ Conduct market research to identify potential industry and patent application management.
partners, and then market the innovations. Research has ■ If the TTO decides not to pursue IP protection and com-
shown that in the United States, the primary source for mercialization of an innovation, implement a process to
identification of licensees is the inventor. In industrial- ensure that others have an opportunity to pursue protec-
ized countries, inventors typically are familiar with the tion and commercialization if they choose. The “others”
marketplace in their area of scientific expertise; through will most often be inventors.
414
(table 5.9) (the finance gap for small enterprises is also concept and perhaps a plan for growing the business.3
noted in TN 3). The choice of a risk capital investment Angel investors may group together to form angel invest-
model depends on the growth stage of the project or com- ment pools or come from the category referred to as FFFs
pany that will receive the funds. (friends, family, and fools—see figure 5.3).
Innovation funds, including competitive grants or match- 2. Seed fund investment. A pool of money used to back
ing grants as described in TN 2, may be used to make a small companies that are too small to attract venture firms but
enterprise in the early stages of development “investment- require too much money for angel investors. For exam-
ready” for the types of investment shown in figure 5.3.2 ple, a business may have a prototype product or service
Innovation funds may, for example, support moving an idea but few sales.
through the feasibility and proof of concept phased to a stage 3. Venture capital fund investment. Venture capital funds
that is much more attractive to angel and seed capital. Incu- pool and manage money from institutional investors, such
bators (TN 3) may provide similar support. as pension funds and insurance companies, as well as from
Typical equity investment levels, which do not have clearly other venture funds and wealthy individuals. They take
defined boundaries, are: equity stakes in SMEs with strong growth potential.
1. Angel investment. An angel investor provides backing to This note focuses on the venture capital model of risk
very early-stage businesses or business concepts. For capital and pre-venture capital. Because much of the inter-
example, a business may have little more than a business est in risk capital investment for agricultural innovation is
relatively new, although investment at other stages is already
Table 5.9 The Gap in Access to Enterprise Finance in place, many of the investment vehicles discussed here have
in Africa a limited track record for investment in agricultural innova-
Funding level Funding category Availability
tion and are consequently unproven. For this reason, the dis-
US$10 million Project financing Yes
cussion that follows draws on lessons learned in the use of
US$1–10 million Venture capital/private Some risk capital in other more traditional investment sectors,
equity especially in innovative technology.
US$50,000–1 million Startup/seed capital/growth No
capital/meso-finance
US$100–50,000 Microfinance Yes RISK CAPITAL INVESTMENT MODELS
Source: Adapted from Ashley, Warner, and Romano 2005. The elements needed to provide risk capital for innovation
are: (1) an adequate number of opportunities for invest-
Figure 5.3 Typical Financing Stages for Company Growth
ment (referred to as “deal-flow”); (2) a structured vehicle
that provides a source of funds; (3) defined criteria for
Startup financing cycle
investments made by the investment vehicle; (4) a method-
Secondary
VCs, acquisitions, mergers, ology for evaluating and selecting projects to be supported
Angels, FFFs strategic alliances offerings
according these criteria; and (5) a fund management entity
Seed capital
Later stage and governance to monitor and manage funded projects.
Early stage
Revenue
MODULE 5: THEMATIC NOTE 6: RISK CAPITAL FOR AGRICULTURE IN DEVELOPING AND MIDDLE-INCOME COUNTRIES 415
public offering (IPO) in which the company becomes assessments on potential investments (known as “due dili-
authorized to sell its stock to the general public on a stock gence”); representation of the fund to the potential invest-
exchange. Venture capital funds will not only provide ment’s board of directors or equivalent; defining exit strate-
money but will mentor their investee firms. Venture capital gies; monitoring investments and taking corrective action
funds are very selective in making investments and may when needed; and communication with all investment par-
review many hundreds of business plans before investing in ties. An advisory board composed of independent members
one opportunity. By their nature, venture capital invest- and investor representatives should: provide guidance on
ments are high risk and investments may fail. On average, the implementation of the fund’s investment strategy;
about one in 10 venture capital investments will provide a ensure adherence of the fund to its investment charter; and
substantial return on investment. Others may fail or pro- resolve conflicts of interest. An investment committee com-
vide insufficient returns to justify the investment. Venture posed of fund representatives and/or other investors should:
capital funds usually invest at several stages of a business’s approve all investment decisions of the fund, on the basis of
development: startup (funding for businesses at the early reports of evaluations and due diligence performed by the
stage of product or service development), first-round fund manager; conduct postinvestment monitoring; and
(funding for businesses that have initial sales), second- review progress of the fund’s portfolio and fund manager
round (working capital for early-stage companies that are performance.
selling product, but not yet turning a profit), third-round
(expansion funds for a profitable company; also called
Funding criteria
mezzanine financing), and fourth-round (financing for exit
preparation such as a trade sale or an IPO). Key criteria may include the following:
Venture capital fund management team A selection of agricultural investment funds and the type of
Venture capital fund management teams receive a combina- instrument and investment preferences is shown in table 5.10.
tion of management fees and a share of the profits. Com- A few of these funds, mostly the new ones, support agricul-
pensation in the form of a percentage of the fund’s capital tural innovation, but overall they focus on agribusiness, value
means that there is a lower limit on the amount of capital chain development, and food processing. Box 5.29 describes
necessary to support qualified management teams. Thus one representative fund in more detail.
this venture fund model cannot function if only small
amounts of capital are available (for example, seed funds
POTENTIAL BENEFITS
have to consider other compensation systems).
The fund manager is responsible for the overall financial The impact of providing risk capital for investment in inno-
and administrative management of investments, including: vative agricultural ventures will depend on the reasons for
The African Agriculture Fund was established in 2009 investment financing, equity, and quasi-equity
by AfDB, AGRA, BOAD, IFAD, and AFD. The fund has products, Technical Assistance Facility (TAF).
an initial target size of US$150 million and expects to
raise additional commitments up to an aggregate capi- The fund has two windows of financing for enter-
tal amount of US$500 million. Investment objectives of prises. A small–medium company financing window
the fund, chosen because they are assessed as future offers investment between US$0.15 million and
high-growth sectors, include: US$4 million to help bridge the typical early-stage
financing gap. A large company financing window is
■ Food production industries (or provide financial
designed for investment up to US$15 million for more
services to small agribusiness operators).
mature firms.
■ Invest in the value chain to reduce transaction costs
of producers/processors and in storage/marketing. Fund terms and exit strategy are: a five-year commit-
■ Grow their markets within the region or develop ment period; seven- to ten-year investment maturity;
export opportunities. the exit strategy shall be, as the case may be, to provide
■ Main investment sectors: cereal production, roots for the option for local agricultural producers to acquire
and tubers, livestock and dairy products, fruit prod- interests in the targets; and average Internal Rate of
ucts, seed production and fertilizers, fats and oils, Return per target shall be around the mid-teens.
(Box continues on the following page)
MODULE 5: THEMATIC NOTE 6: RISK CAPITAL FOR AGRICULTURE IN DEVELOPING AND MIDDLE-INCOME COUNTRIES 417
Box 5.29 African Agriculture Fund (continued)
ADVISORY BOARD
INVESTMENT COMMITTEE
Source: www.phatisa.com.
Note: AFD = Groupe Agence Française de Développement; AfDB = African Development Bank; AGRA = Alliance for a Green Revolution in
Africa; BOAD = Banque Ouest Africaine de Développement; IFAD = International Fund for Agricultural Development.
MODULE 5: THEMATIC NOTE 6: RISK CAPITAL FOR AGRICULTURE IN DEVELOPING AND MIDDLE-INCOME COUNTRIES 419
A cautionary lesson from developing countries is that use of investment capital will help accomplish the expected
investment decisions can be distorted by political influence. outcomes. Businesses and governments often believe that
Government officials typically lack the experience to evalu- what they need most is investment capital when in fact it
ate and manage investment opportunities. In India, for may not be the immediate critical need; a more pressing
example, the selection of government-funded projects that need might be finding business partners or gaining access
were candidates for further investment was contracted to a to markets.
private sector group. ■ Set the right balance between (1) investing in technology
commercialization and (2) investing in technology
absorption and adaption, together with investment in
Practical issues for risk capital use in early-stage
building the capacity to support technology translation
development
and development.
Policies should focus on the practical rather than the ideo- ■ Determine the financing objective. Is it to earn a finan-
logical. A practical problem for many developing countries cial return on the investment, to foster economic devel-
in negotiating financing agreements to either acquire a opment or social welfare, or achieve another purpose?
technology or license IP to others is that someone has to The purpose of an investment or investment strategy
take the first step and agree to provide initial funding, should be decided and made clear to all involved at the
which could be matched later by others. Sometimes this start of the process.
funding can be in the form of a grant for early-stage devel- ■ No investment can be made without a sufficient “deal
opment, as noted. Should these grants take too long to be flow”—a continuous source of investment possibili-
approved (as is often the case), the deal may be lost. ties. The public and private sectors can stimulate deal
Note that usually angel and seed funding rely on the avail- flow.
ability of later-stage capital to get a return on their investment ■ When developing an investment fund or other invest-
by having their shares bought out. Of special interest to devel- ment vehicle, decide how much money will be dedicated
oping countries is that some investment models specifically to the fund or other vehicle and under what conditions
attempt to address the “investment gap” (also referred to as the or constraints. This decision is critically connected to the
“Valley of Death”) which occurs when private and public question of what is the purpose and investment strategy
funding are either unavailable in the first place or run out, and of the fund. Some public investment funds have sizeable
where the company’s net cash flow does not close the funding amounts of money but have not succeeded because of a
gap. Many businesses—frequently those based on research poorly conceived or implemented investment strategy.
discoveries—continue to reside in the Valley of Death because Other funds, with limited capital, have not been able to
they lack the financial support and skilled management teams support businesses to become self-sustaining.
to progress into the “proof of relevancy” phase. ■ Structure public funding to attract private funds, either
initially or later (for example, as matching funds or a
guarantee for the private investment).
Recommendations for practitioners
■ A majority of nongovernment representatives should be
A few recommendations should be considered: appointed to management boards of investment pro-
grams using government funds. Government representa-
■ Ask the question: What problems are to be solved or needs tives should provide guidance but may want to create
to be met? The answer will determine if the provision and maximum good by funding too many projects.
421
ABI represents a new resource to promote enterprise ■ Seed ventures. Rural entrepreneurs receive support in
development in agriculture and facilitate business among developing a seed business to meet the demand for high-
entrepreneurs and technology developers. The pillars for quality seed of open-pollinated crops. Through partner-
high-performance incubation are R&D, business planning, ing with public and private entities, entrepreneurs are
business development, and access to capital (figure 5.4). The assisted in seed production, processing, and marketing
framework encompasses all the services and support sys- (box 5.30).
tems offered to an agribusiness venture, such as technology ■ Biofuel ventures. ABI promotes industries involved in
transfer, business facilitation, and technical guidance, espe- producing ethanol from sweet sorghum and other agri-
cially those in ABI’s focal areas of seed, biofuel, and farm cultural materials.
systems. ABI also facilitates the commercialization of ser- ■ Innovative ventures. Innovative agribusiness ventures
vices that benefit farmers. are based on proprietary products or novel services with
good market potential.
■ Farm ventures. Contract farming, organic farming, and
INNOVATIVE ELEMENT
precision farming are among the commercial farming
ABI is the only incubator with an inclusive, market-oriented ventures promoted through ABI.
development plan that seeks to improve farmers’ livelihoods ■ Agribiotech ventures. ABI enables seed companies to
through business incubation. Based on the experience engage in the emerging area of agricultural biotechnol-
gained in the years since ABI’s inception, the approach has ogy by developing genetic transformation protocols for
evolved to benefit the farmers through a vertical strategy commercial crops, molecular markers for traits of inter-
(service strategy) and a horizontal strategy (an outreach est for seed producers, and tissue culture methods for
strategy based on partnerships in collaborative business producing medicinal, horticultural, and tree crops.
incubation).
The service strategy focuses development on strategic The outreach strategy of ABI is to collaborate with
areas related to the mandates of ICRISAT and its partners: organizations globally in business incubation (cobusiness
Capitalization High-performance
Business planning
incubation
Access to services
Networks and
alliances
Value proposition
Business development
development
Champions
Aakruthi Agricultural Associates of India (AAI) was supply by 80 percent. The gap for chickpeas is 30 per-
launched in 2004 as a commercial alternative to gov- cent; for pigeonpeas, 70 percent.
ernment agricultural extension services in Anantapur When AAI graduated from the incubator in 2006, it
Province of Andhra Pradesh. AAI joined forces with became a full business partner with ICRISAT for dis-
Agri-Business Incubation (ABI) in 2005 and in 2006 tributing ICRISAT seed in Andhra Pradesh. AAI has
became the second venture to graduate from the compressed the time between the release of new seed
incubator. and market acceptance in Andhra Pradesh from eight
Through the incubator, AAI developed a successful years to less than three years. The advantage of more
business model based on partnership with seed rapid market penetration is significant for both
providers like ICRISAT, national and state agricultural ICRISAT and farmers. In 2009 the company generated
research centers, and farmer franchisees. AAI designed revenues of 27 million rupees. Its net profit margin was
replicable seed business ventures and proprietary 2 percent and is expected to reach 20 percent.
methods for recruiting farmer entrepreneurs for local, ABI assisted AAI with several critical elements of its
low-cost, high-productivity seed multiplication. These development, including the creation of a business plan;
ventures create seed delivery systems that offer an alter- provision of technical knowledge and seed science
native to government-supported channels and allow backstopping; introductions to multiple stakeholders
more rapid introduction of superior varieties. AAI has and potential sources of financing; and introductions
built a network of 70 farmer entrepreneurs in Andhra and links to the national research system and other
Pradesh. These entrepreneurs pay franchise fees and public providers of technology. Arguably the most sig-
receive working capital advances. They engage more nificant assistance that ABI provided to AAI consisted
than 300 farmers in seed multiplication and currently of increasing its credibility with government officials.
have 4,000 acres under production. Despite these achievements, AAI’s growth is con-
The target crops include groundnuts, chickpeas, strained by a lack of external financing. In this area of
pigeonpeas, and rice. Oil and legume seeds, in partic- development, ABI has not been able to assist its clients
ular, offer limited commercial opportunity for multi- as successfully as it would wish, although it helped to
plication and distribution due to their inherent low secure financing for the company’s seed processing
multiplication ratios. Through its franchise concept, plant, and 12,000 square feet of warehouse capacity was
AAI can sell seed of these crops in markets where provided by the Department of Marketing. ABI has also
demand significantly exceeds supply. Demand for assisted AAI in renting numerous local seed storage and
groundnut seed in Anantapur, for example, exceeds distribution centers.
incubation). The benefits of cobusiness incubation are that and operations; capacity building in business incubation
it provides enhanced support and services to a greater num- operations; business consultancy support services; access
ber of entrepreneurs; enables complementary business and by Technology Development Board entrepreneurs to seed
technology development in a greater number of regions; capital; development and implementation of incubation
fosters cross-border ventures and business development; services in the focal areas (seed, agricultural biotechnol-
provides access to a greater range of physical, technical, and ogy, biofuel, other innovation, farms, and potentially
other facilities for clients; improves access to a greater range other areas); and making the system successful and self-
of markets; offers common branding that can make clients’ sustaining through M&E. To date, key partners for
businesses more marketable; and maintains an inclusive, cobusiness incubation have come from the Network of
market-oriented development strategy. Indian Agri-Business Incubators (NIABI) and from
Cobusiness incubation services with other institutional Mozambique.1 ABI is the coordinating body for NIABI,
partners include: planning, development, and implemen- which is implemented by ICAR under the World Bank-
tation of a business incubator; facilitating coordination funded NAIP project.
MODULE 5: INNOVATIVE ACTIVITY PROFILE 1: DEVELOPING ENTREPRENEURS THROUGH AN AGRIBUSINESS INCUBATOR 423
IMPACT: TECHNOLOGIES COMMERCIALIZED planted in 100,000 acres in Anantapur District by 20,000
farmers.
ABI has supported more than 158 ventures in agribusiness
since 2003. Among ABI’s clients, 62 percent are seed entre-
preneurs, 13 percent are incubatees located on site, 30 per- LESSONS LEARNED
cent are cobusiness incubatees, and 4 percent are biofuel
ABI has chosen a fairly risky strategy of combining new
entrepreneurs. To date, agribusiness products and technolo-
entrepreneurs with new technology—a risk that is partly
gies incubated through ABI have included sweet sorghum
offset by close linkages with world-class scientists. ABI’s
for ethanol production; insect-resistant transgenic cotton
access to capital and commercial expertise is also somewhat
(box 5.31); a biofermentor for biopesticide production; a
less developed than that of most other incubators. Some
drought-tolerant groundnut variety; better-yielding chick-
observations on sustainability and challenges follow.
pea varieties; biopesticide formulations; and organic farm-
ing methods. Businesses supported by ABI are estimated to
have benefited 40,000 farmers. Sustainability
In Andhra Pradesh and Maharashtra, 4,000 acres have ABI operates as a business. An initial startup grant of
been brought under sweet sorghum cultivation for ethanol US$444,444 as capital for infrastructure and US$111,111 as
production. (See other details in module 4, box 4.29 in IAP a recurring grant was provided by the National Science and
2.) The drought-tolerant groundnut variety is used by 1,500 Technology Entrepreneurship Development Board (NST-
farmers on more than 5,000 acres; a new chickpea variety is EDB). On average, ABI is generating US$250,000 per year;
its annual operating expenses are around US$2 million.
Box 5.31 Agri-Biotech Incubation with Bioseed Since its inception in 2003, ABI’s average annual growth rate
Research India has been 30 percent. ABI works on two financial models:
Source: ABI.
SYNOPSIS OF PROJECT DATA and other high-value commodities, including “green” and
organic food, rose rapidly.
Country: China: Shaanxi, Anhui, Hunan, Hei-
■ Demand for advanced food processing and marketing.
longjiang Provinces
Increasing urbanization and differentiation of the food
Project: Agricultural Technology Transfer Project
consumption structure demanded an advanced process-
Financing: About US$207 million, of which US$100
ing, marketing, and catering industry. Enterprises in this
million is a World Bank loan
sector have mushroomed throughout the country. Most
Implementing State Office for Comprehensive
of these enterprises were naturally competing with
agency: Agricultural Development
small-scale farmers on profit margins, or entirely new
Dates: Approved April 28, 2005; original closing
agricultural markets emerged in which smallholders
date (December 31, 2010) extended to
often had a relatively weak position.
December 31, 2011
■ New market challenges and opportunities. China’s
Includes About 120 subprojects.
accession to the World Trade Organization required
support for:
rapid liberalization of trade practices and further open-
ing up of the border. Internal production and food
CONTEXT quality standards had to be improved and adjusted to
international standards.
ince the end of the 1990s, China’s agricultural sec-
426
engaged in extending the government’s programs and pro- investment models in which researcher-investor-farmer
duction targets, and had no effective means of dealing with partnerships are tested; (2) targeted technology transfer,
the constraints small-scale farmers encountered in adopt- which financed technology transfers targeting farmer
ing new technologies. groups who did not have adequate access to information,
The Technology Transfer Project responded to strategic capital, or decision-making power to adopt technologies
concerns in China’s agriculture by providing a learning plat- on their own; and (3) public support programs, which
form for developing innovative models for public sector involved financing activities that enabled the private
facilitation and support, including fostering better PPPs in sector to realize its role in commercializing innovative
agriculture. The primary addressee of the project was the technologies (such as food testing and certification or
public sector’s agricultural support and development sys- use of IPRs) and technologies that did not appeal to the
tem, in particular the State Office for Comprehensive private sector on commercial grounds but had a clear
Agricultural Development (SOCAD), which is China’s public good nature (such as water-saving technology or
main funding institution, disbursing about US$2 billion waste treatment).
each year for agricultural development in the country.
A significant amount of this budget supports agribusi-
nesses. Any improvements in targeting these funds and PROJECT INNOVATIONS
improving funding modalities would therefore have a The first innovation of this project was that, unlike tradi-
tremendous impact. tional public sector support projects, it combined public
funding for research, extension, training, and institution
building with private investment. The government funded
PROJECT OBJECTIVES AND DESCRIPTION
the development and dissemination of public goods, but
The project’s overall development objective was to develop these activities were implemented by the private sector to
and test innovative models for agricultural technology foster the integration of public and private investments
transfer and application aimed at generating additional (World Bank 2010).
farm income with potential for scaling up. In this way the The second innovation of this project was to focus on
project sought to give poor farmers a chance to participate technologies that increase smallholders’ incomes. Often
in high-value agricultural markets, domestically and inter- public investments in agricultural research raise smallhold-
nationally. This objective was to be achieved by supporting ers’ productivity but not necessarily their incomes (World
viable models for restructuring and modernizing agri- Bank 2010).
cultural production, processing, and marketing through The third innovation was to develop and fund institutions
various forms of vertical and horizontal integration, the such as farmer associations as part of the “technology pack-
introduction of innovative technologies, and new institu- age,” provided they would improve the dissemination of new
tional arrangements and PPPs. technologies.1 In addition, under all subproject proposals
Since mid-2005, the project has been underway in four involving commercial enterprises it was made mandatory
provinces (Anhui, Hunan, Heilongjiang, and Shaanxi), that at least 50 percent of the subproject funding would be
which includes the Yangling High Technology Agricultural used to directly support farmers in providing the raw mate-
Demonstration Zone. The initial closing date of December rial for the enterprises (production base or farm outreach).
2011 was extended by one year to provide more time for The fourth innovation was to design this project specifi-
analysis and to learn from experience. The main compo- cally as a learning platform. Recognizing that a single proj-
nents of the project are: ect could have only a limited impact in a country as big as
China, the project was designed as a stepping-stone to
1. Technology transfer and information markets and ser- improve the effectiveness of public investment and partner-
vices, which includes the building of technology transfer ship arrangements by partnering with private players. For
markets and exhibition and demonstration facilities. this purpose a framework for M&E was designed to extract
2. Promotion of commercially attractive key technologies and disseminate lessons from this project, particularly in
and new institutional arrangements, including two areas: (1) the understanding and rationale for public
(1) researcher-investor-farmer technologies, which funding (why and in what areas is it justified to use pub-
involved the partial financing of typically tripartite joint lic funds for agricultural development) and (2) the
ventures with the objective of designing successful improvement of procedures for the use of public funds (such
MODULE 5: INNOVATIVE ACTIVITY PROFILE 2: THE CHINA TECHNOLOGY TRANSFER PROJECT 427
as contracts with private partners, working with farmer companies and farmers or farmer associations. For example,
cooperatives and associations, and similar arrangements) organic food production or integrated pest management
(World Bank 2005–10). technology were difficult for individual famers to adopt
because their small holdings prevented them from exploiting
commercial opportunities. However, in groups and in combi-
BENEFITS, IMPACT, AND EXPERIENCE
nation with a strong processing or marketing partner, small-
Many subprojects supported under the project generated holders could be linked with commercial opportunities.
remarkable benefits in terms of value added, additional New products and markets, which require the commit-
income, or entire new lines of business with new products ment of multiple stakeholders over time to develop and
and markets. These achievements were based on: (1) inno- reach, were opened by involving the public sector as a bro-
vative institutional and partnership arrangements (for ker. A typical example was the development of camphor
example, public sector research with companies or farmer production in one area, where an investor used the support
organizations or research-farmer or research-company of the local government and the project to organize farmers
arrangements); (2) innovative funding arrangements; and to plant sufficient trees and build a critical mass of produc-
(3) innovative technologies fostered by these new part- tion required for a viable processing facility.
nerships. However, the project was designed as a learning Many subprojects show that organizing farmers into asso-
project. As such its achievements in terms of value-added ciations or under company-farmer arrangements enables
or additional income cannot be seen as an end but provide them to enter into higher-value production through brand-
only the tool for learning and drawing more generic lessons. ing, product certification (green or organic certification, for
The project developed an analysis and lessons learning example), or accessing new markets (especially export mar-
framework (World Bank 2005–10), but the evaluation kets). In some instances, farmers were organized because
process continues, with a consolidation of results yet to companies were the driving force, but in others farmer asso-
come. Even so, some key outcomes have been identified. ciations alone achieved these objectives.
National and provincial agricultural support programs Contractual arrangements between the government and
have already adopted several design elements tested under the private entities introduced under the project showed that
project. A number of policy documents have been prepared, private institutions could successfully deliver public goods
which influenced SOCAD’s funding policies, including: and services. Many subprojects involve farmer associations
or companies providing animal health services, training
■ The combination of company and farm outreach sup- farmers, or providing other extension services. Most project
port under a joint investment. proposals target poor farmers or disadvantaged groups. Sev-
■ Importance of farmer associations as new and valuable eral proposals have involved innovative technologies and
partners in PPPs. environmental services, such as the treatment of manure,
■ PPP arrangements to be guided by a clear understanding waste, or crop residues.
of public good outcomes to be specified in contractual Although the private sector is assuming many functions
arrangements with objectives, indicators, and milestone- traditionally performed by government institutions, the
based targets. project has demonstrated that the government remains cen-
■ Monitoring of PPP contracts and performance as a cru- tral to areas such as food safety, protection of property
cial success factor. rights, regulations, and policy direction. Project investments
in those areas (for example, in food quality standards test-
Models have been developed with innovative manage- ing and certification in Yangling, or testing for the presence
ment approaches and technologies for women farmers. The of genetically modified ingredients and certification in
outmigration of male labor from many rural areas in China Anhui) show the importance of the government in relation
increases not only the demand for technologies suitable for to the private sector in agricultural development.
women but the need for women to develop their managerial
skills as farm operators and entrepreneurs. The project
LESSONS LEARNED AND ISSUES
developed a model partnership with the All-China Women’s
FOR WIDER APPLICATION
Federation that successfully addressed these needs.
Technology barriers caused by fragmented production The summary of impact and experience gives some indica-
and small farm size were overcome by partnerships between tion of the lessons that the project has already provided.
MODULE 5: INNOVATIVE ACTIVITY PROFILE 2: THE CHINA TECHNOLOGY TRANSFER PROJECT 429
I N N O V AT I V E A C T I V I T Y P R O F I L E 3
430
of enterprises in the cluster, existence of a local identity and number of complementary initiatives in the target clusters
shared culture among cluster stakeholders, the degree of (box 5.32).
organization within the productive sector, the motivation of
entrepreneurs and local institutions, the existence of com-
Capacity building for representatives of political
plementary projects in the locality, the potential for third-
and academic institutions
party funding for cluster activities, and market demand and
trends for products produced by the cluster, among other UNIDO organized specific seminars for university teachers
criteria. The 14 clusters eventually selected belonged to a and political actors at the national level to increase their
number of subsectors, including the cocoa, dairy, livestock, awareness of the importance of fostering systemic territorial
coffee, and banana subsectors. competitiveness. The aim was to ensure that a critical mass
Brokering institutions were selected through competitive of opinion and decision makers would take ownership of
bidding. Selection criteria included being active in the cluster the cluster approach and continue promoting activities after
but perceived as neutral by stakeholders, having strong ties the project’s closure. Between June 2006 and November
with or a good understanding of the productive sector, and 2007, UNIDO organized seven seminars on theoretical
having qualified, experienced human resources. After training aspects of cluster promotion for 25 professors of the eco-
in the cluster development methodology, the brokering insti- nomics departments of 8 prioritized universities and 20 rep-
tutions implemented it in their respective clusters. UNIDO resentatives of the public sector. The training topics were
provided backstopping throughout this on-the-job training, established in a participatory manner with the academic
which was critical to capacity building and to adapting the counterparts, since the main objective was to build the
approach to the local context. Brokering institutions were capacity of university professors to lecture on cluster devel-
enabled to take stock of parallel activities to support the SMEs opment and motivate them to establish closer links between
in the target clusters and align actors and activities in ways the universities and the productive sector.
that would enhance each cluster’s performance.
UNIDO mainly financed activities to facilitate collabora-
BENEFITS, IMPACT, AND EXPERIENCE
tion and synergies in territorial initiatives. In a few cases it
cofunded competitiveness-enhancing activities to trigger The benefits, impact, and sustainability of indirect assis-
imitation effects. The search for public and private funding tance with brokering and capacity building for academi-
was a key responsibility of the brokering institutions. An cians and policy makers are described in the sections that
advantage was that UNIDO could draw on or leverage a follow. The discussion is supported by case studies.
Box 5.32 Complementary Cluster Development Activities Reinforced the UNIDO Project
■ A conducive policy framework, including a National ■ Other technical or financial assistance projects,
Development Plan focused on sector-specific and focusing on upgrading quality, facilitating market
territorial enhancement of competitiveness and the access, and strengthening design and technological
Presidential Competitiveness Commission, an exec- capacities among producers and local authorities
utive body for public-private dialogue. (variously funded by Germany, Finland, the United
■ Infrastructure development, including transport, Kingdom, and European Union).
water, and electricity infrastructure developed by ■ Activity by nongovernmental and civil society
the National Energy Commission, Inter-American organizations engaged in strengthening local coop-
Development Bank, and the Government of Japan. eratives, production processes, and product quality
■ Institutional strengthening, including the estab- (through training and diagnostics) as well as market
lishment or development of local cooperatives access (promotional activities), including Oxfam,
as well as the strengthening of national producer HORIZONT3000, and the Interchurch Organiza-
organizations. tion for Development Cooperation.
Source: Author.
In the Nicaraguan department of Chontales, around associations and the biggest local slaughterhouse.
5,350 producers raise livestock for meat on a small The agreement specified the quality standards and a
scale. The brokering institution for this cluster was the premium for cattle meeting those standards. Pro-
Center for Entrepreneurial Management (CEGE), ducers raised their incomes; the slaughterhouse
which belongs to the National Union of Agriculture gained a consistently good source of supply.
and Livestock Farmers (UNAG). UNAG had around ■ Cluster actors collaborated against widespread live-
3,000 members in Chontales alone and was very active stock theft. Three municipalities engaged livestock
in supporting farmers both technically and financially. guards (typically volunteers trained by the local
In 2006, after a participatory diagnostic study, CEGE police and financed by the collaborating producers).
facilitated the creation of a cluster commission, which ■ The largest slaughterhouse (87 percent), UNIDO
was composed of representatives of the various cattle (7 percent), and the local university (6 percent) spon-
farmers’ associations, local universities, the biggest local sored research by three university students on slaugh-
slaughterhouse, various municipalities, the police, and tering and boning capacities. The results motivated
other public institutions. Under CEGE’s guidance, these the slaughterhouse to fully finance the expansion of its
representatives prepared a joint action plan and imple- slaughtering capacity from 350 to 550 cattle per day.
mented concrete activities to overcome the bottlenecks.
Project participants achieved the following results: CEGE continues to operate as the local brokering
institution. The cluster commission remains active and
■ Small-scale cattle farmers were struggling with the has expanded its scope. Because most cattle farmers in
nontransparent grading and pricing system applied Chontales are also milk producers, CEGE and the clus-
by local slaughterhouses. CEGE helped to mediate a ter commission are fostering public-private linkages in
stable supply agreement between five producers’ both the local livestock and dairy sectors.
Source: Author.
Note: CEGE = Centro de Gestión Empresarial, Universidad Centroamericana de Nicaragua; UNAG = Unión Nacional de Agricul-
tores y Ganaderos.
A significant share of Nicaraguan banana production is in these practices on their farms. APLARI and the
concentrated in the department of Rivas, where around Ministry of Agriculture provided training and tech-
4,000 small-scale banana producers operate. The nical assistance to the farmers. These producers
Banana Producers Association in Rivas (APLARI) was received higher prices for their bananas and served as
the brokering institution for this cluster. APLARI pro- a model for other farmers.
vided assistance to its 500 members to improve produc- ■ APLARI supported four small producer coopera-
tion and marketing. In this case the cluster commission tives to establish a sales network to increase their
included members of banana producer organizations, supply volume and bargaining power. The cooper-
local representatives of the Ministries of Agriculture and atives started selling jointly to a Honduran banana
Transport, the police, the army, local universities, finan- chip company and a high-end supermarket chain in
cial institutions, and international cooperation agencies the capital. The incomes of producers involved in
operating in the area. APLARI helped the commission these sales agreements had increased by up to 50
members prepare a joint action plan, in which the value percent by the end of the project.
of the planned activities amounted to US$850,000. Of ■ Banana producers on the lake island of Ometepe
this, 5 percent was financed by UNIDO and the remain- found it difficult to sell to clients on the mainland.
der came from APLARI, the government, the European The only private boat company charged extremely
Union, the United Kingdom, Inter-American Develop- high fares for transportation and did not respect
ment Bank, and others. Some of the main results the time schedule. Intervention by public authori-
included: ties (in particular the National Port Operator)
fixed transportation fees and restored adherence to
■ APLARI helped institutions to adapt their support schedules. Port facilities were upgraded and
services to producers’ technical requirements. One expanded. The improved boat connection with the
result of this realignment was that producers started mainland benefited not only the producers in
to use the local university’s soil testing service. Ometepe but facilitated the arrival of tourists to
■ The Ministry of Agriculture had tried to introduce the island.
“best agricultural practices” among banana pro-
ducers in Rivas but had failed because of a lack of When the project ended, APLARI and the cluster
direct communication with the productive sector. commission continued promoting public-private activ-
Thanks to APLARI’s intervention and European ities in Rivas to strengthen the performance of the
Union support, 18 leading producers agreed to invest banana cluster.
Source: Author.
Note: APLARI = Asociación de Plataneros de Rivas.
whose support would be out of reach to individual stake- implement activities with the productive sector to foster sys-
holders. The agglomeration of local private enterprises temic competitiveness. At the national level, however, newly
around a clear set of development objectives facilitated public- elected authorities preferred terminology associated with a
private dialogue, as it provided the private sector with a clear value chain approach, which may alter perceptions of the
agenda and legitimate leaders. Support institutions could cluster approach.
more easily cater to a well-organized cluster than to isolated It had been envisaged to target university headquarters
actors, so the effectiveness and client orientation of their for seminars on the cluster approach, as they could establish
services improved. the curriculums of their regional branches and foster wider
dissemination of the approach. In practice, the regional uni-
versity branches were much more receptive to the cluster
Capacity-building for representatives approach, mainly because as cluster members they felt more
of political and academic institutions
committed to local economic development.
At the cluster level, municipalities and other public actors Several regional branches of universities trained by
were actively involved in cluster commissions and began to the project established links with the productive sector
435
research and innovation funding could be channeled to, capacity of the fund recipients to innovate and to increase
governed by, and accessed by small-scale farmers their overall contribution to and participation in the inno-
through small grants (typically a few hundred dollars or vation process.
less) for developing innovations of their own choosing. Funds are administered by small multistakeholder com-
LISFs specifically target poor and vulnerable households mittees or secretariats (usually with 5–10 members but no
and focus more (but not exclusively) on local ideas and more than 2 or 3 in the case of the CGPs) in charge of
technologies (existing or new), depending on what farm- organizing the calls for proposals and creating sufficient
ers actually want to achieve. LISFs have been operating awareness about the fund, clarifying the funding modalities
on a pilot basis in several low-income countries in Africa (grant size and cofunding share, interest rate if a loan is
and Asia over the past five years. involved, and so on), screening applications in a formalized
■ Competitive Grant Programs (CGPs) focus on commer- and transparent way, and overseeing the effective disburse-
cially oriented, small- to medium-size farmer groups and ment of funds (adapted to the financial services and circuits
small rural businesses. Although CGPs work with poor available to the applicants).
farmers, they prioritize commercially oriented ones. The In most cases, field days or innovation fairs and/or com-
CGP focuses on business and market-oriented activities mercial radio or TV programs (in the case of CGPs) are
and emphasizes adapting and adopting existing tech- organized to share the results obtained by farmers through
nologies (but not exclusively). CGP grants are generally their fund-supported activities. The intention is to increase
much larger than LISF grants (typically US$10,000 or awareness about the funds and motivate more farmers to
more). Grants include funding for investments to set up apply for the next cycle of funding.
the innovative activity, for external technical assistance, Other key activities typically include capacity building
and for technology transfer and demonstration to other for those who handle the fund at the local level as well as
farmers and stakeholders. A CGP initially operated in representatives of organizations supporting farmers’ inno-
Albania, and similar schemes are being implemented in vation. A typical fund program also seeks to establish an
Armenia, Azerbaijan, and Kazakhstan. enabling environment for implementing grants, allowing
careful M&E, and ensuring effective learning and sharing
Both funds have some generic features. They are both with members of the FIF committees and with relevant
designed to provide a diverse spectrum of beneficiaries or agricultural R&D institutions and policy makers. These
clients (including farmers, land-users, and rural businesses, efforts are aimed at creating awareness and support for the
either as individuals or as members of groups) with easy fund program’s longer-term sustainability.
access to relatively modest grants or loans allowing them to
develop, invest in, and strengthen initiatives and innova-
INNOVATIVE ELEMENT
tions that they consider worth pursuing and which also
have the potential to produce public goods such as eco- Farmer innovation funds present a handful of innovative
nomic growth and rural employment, social equity, and elements:
ecosystem services.
The funds can be used for various purposes and types of ■ They are designed to be easily accessible to small-scale
innovations, including technical ones (natural resource farmers and other stakeholders through simple applica-
management, for example, or improved production, pro- tion forms and procedures, simple fund disbursement
cessing, or transformation of produce), organizational ones modalities, support provided to farmers to fill in appli-
(such as better access to input, service, and produce mar- cation forms and meet eligibility criteria, and the possi-
kets), and institutional ones (such as creating new institu- bility of applying as individuals or groups.
tions and rules or transforming existing ones). To fulfill this ■ They are meant to solve problems and to test innovations
purpose, funds may be used for implementing diverse types defined and chosen freely by the applicants themselves.
of activities: experimenting on a smallholder’s own farm, ■ Some FIFs (such as LISFs) strive to give farmers a promi-
engaging in joint experimentation and other activities by nent role in fund governance, including setting up crite-
farmers and other stakeholders (researchers, extension ria for selecting applicants, screening proposals, and
agents, and so on), transferring existing technology, or shar- M&E.
ing and disseminating successful experiences. In doing so, ■ FIFs have a relatively light administrative structure, so
the aim is also to strengthen the individual and collective that over time the corresponding costs are reduced and
Table 5.12 Key Characteristics of Farmer Innovation Fund Grants Made in Several Countries, 2005–10
Period Applications Percent Loan or
Country covered received approved grant? Award size (US$) Who are the applicants?
LISF scheme
Cambodia 2005–09 193 69 Loan 10–100 Individuals filtered by group
Ethiopia 2005–09 109 43 Grant <100–300+ Both individuals and groups of 4–5 persons
Ghana 2008–09 80 43 Grant 30–300 Mostly individuals
Kenya 2008–09 103 22 Grant 50–250 Mixed/unisex groups and individuals
Nepal 2004–09 63 38 Grant 50–750 Mostly individuals
South Africa 2005–09 65 23 Grant 700–2300+ Mixed/unisex groups and individuals
Tanzania 2008–09 25 64 Grant 500–1000 Group applications only
Uganda 2005–08 98 68 Mostly loan 25–120 Initially groups, later also individuals
CGP scheme
Albania 2002–08 656 22 Grant 3,000–15,000 Groups and associations
Armenia 2006–09 276 20 Grant Up to 20,000 Groups, associations, small businesses
Azerbaijan 2007–10 279 22 Grant 10,000–30,000 Groups, associations, small businesses
Source: Authors.
Box 5.35 Innovation Themes Explored in the Local Innovation Support Funds and
Competitive Grant Programs
Crop and animal husbandry. Examples include lean-meat pig production and marketing, improved
devising inexpensive animal rations by replacing packaging of aromatic and medicinal herbs, and
externally bought feed with locally available feed, improved packaging and marketing of honey.
treating animal disease with local plants, selecting Development of niche markets. Examples include
germplasm adapted to local conditions, controlling production of honeybee feed, production of saplings
bacterial wilt in enset (false banana), devising effec- for forest and ornamental trees, and production of aro-
tive water-harvesting methods, improving apple and matic and medicinal plants.
peach production technologies, and using plastic Sustainable natural resource management. Exam-
mulches in vineyards. ples include increasing biodiversity and combating
Processing and storage. Examples include vegetable deforestation through regeneration of an endangered
preservation, improved sheep cheese production and native tree species of economic value.
brand marketing, and improved onion storage. Social innovation. Examples include organization
Improved quality and marketing. Examples include of groups for developing innovations and improving
collection and standardization of olive oil, improved savings and credit schemes.
MODULE 5: INNOVATIVE ACTIVITY PROFILE 4: PROVIDING FARMERS WITH DIRECT ACCESS TO INNOVATION FUNDS 437
demonstrate innovative technologies to a broader audience LESSONS LEARNED AND ISSUES FOR
of potential rural entrepreneurs and beneficiaries. About 85 WIDER APPLICATION
percent of the direct grantees (for example, 700 farmers in
A number of lessons from the Prolinnova experience with
Albania) experienced an increase in yearly income and were
FIFs may be useful in designing similar interventions. They
likely to continue their activities after completion. Over
are summarized in the sections that follow.
20,000 farmers were directly exposed to new technologies
through the technology transfer activities, with an estimated
Ensure that funds are used for their intended
3–5 emulators per grant at completion and an additional
purpose
number likely to adopt and possibly adapt the technologies
in subsequent years (boxes 5.36 and 5.37 provide examples Farmer funds are meant to support innovation or promote
of a CGP and an LISF case). the adoption of new, relevant technologies (rather than
Box 5.36 An Example of a Competitive Grant Program Grant: Improved Onion Storage and
Marketing in Albania
A local farmer association asked for a competitive grant distributing the produce. Other activities included pur-
to build a small onion storage facility to lengthen the chase of a sprayer and irrigation pump for use by mem-
marketing period and obtain higher prices during the bers and drying onion seed for planting. During the
off-season. During the grant period, the association grant period, dissemination included two workshops,
increased from 7 to 32 members, each with about 0.15 five training days, three publications, and a local TV
hectares of onions and total production of around 350 broadcast focusing on various aspects of onion pro-
tons per year, and signed a contract with a trader in duction and marketing. This grant eventually resulted
Tirana to purchase the onions. Around 37 tons could in linking production with markets and contributed
be stored at a time, with further investments planned to substantially to the development of a viable farmer
increase storage capacity and to purchase a vehicle for association in a remote corner of Albania.
Box 5.37 An Example of a Local Innovation Support Fund Grant: Propagating Podocarpus in Ethiopia
In the highlands near Ambo in Ethiopia, communities the dormancy period by placing seed mixed with soil in
rear livestock, produce crops, and plant trees for food a polybag, burying it in a hole, and providing sufficient
and income. One tree genus of socioeconomic impor- regular water. The method resulted in a high germina-
tance is Podocarpus, a conifer that produces good tim- tion rate (85 percent) and reduced the dormancy
ber. These trees are becoming extinct because of high period from over a year to three weeks. Based on these
demand and the long dormancy of the seed, which results, Jifara received an award from the government,
takes up to a year to germinate. A farmer, Jifara which raised his self-esteem; his income increased from
Workineh, applied for and obtained an LISF grant to selling seedlings; and the community’s stocks of
test various germination methods with the aim of Podocarpus have increased. In addition, researchers’
shortening the dormancy period and regenerating the and especially extension workers’ attitudes towards
tree population in his community. The LISF grant pro- farmers changed, as they now recognized the contribu-
vided him with the required material inputs. Jifara tions of local farmers to local solutions using mostly
eventually developed a successful method of reducing local resources.
MODULE 5: INNOVATIVE ACTIVITY PROFILE 4: PROVIDING FARMERS WITH DIRECT ACCESS TO INNOVATION FUNDS 439
and the scale at which implementing a FIF program makes and in building their capacity to collaboratively manage
the most sense. FIF programs have generally been moving funding schemes at their level through specific training and
towards more farmer-led governance mechanisms and mentoring by support organizations. In financial terms, sus-
structures. This shift requires support organizations to move tainability and a sense of responsibility can be enhanced by
away from managing funds directly and to become more putting payback arrangements into place within commu-
involved in building the capacity of farmer groups to man- nity organizations, as done in the case of the LISF Cambo-
age funds autonomously. Support institutions also play an dia and Uganda. Not all stakeholders are keen on a loan-
increasingly important role in ensuring the quality of pro- type mechanism for funding research and innovation,
posals and integrity of fund use. The case from Cambodia however, as this approach is easily confused with a classic
(box 5.38) illustrates the evolving nature of the setup. microcredit or loan scheme.
Ideally, both local and central approaches could be At a higher level, efforts to institutionalize the FIF con-
implemented at the same time. This strategy would speed cept within the country’s agricultural R&D systems are
the learning process and the way the entire agricultural incipient. In Tanzania, a local government has agreed to
R&D system operates and responds to farmers’ needs and help replenish the LISF in one district. In other countries,
desires. some government agencies participate actively in imple-
menting LISF pilots. In Cambodia, the government and
donors are interested in supporting the recently estab-
Sustainability and scaling up of FIF programs:
lished central institution running the LISF over the long
Advances and challenges
term (box 5.38). In Albania, the Ministry of Agriculture,
At the community level, considerable progress has been Food and Consumer Protection built on the initial CGP
achieved in giving farmers access to innovation resources approach by creating an investment grant model in the
Box 5.38 Dynamics of the Local Innovation Support Fund Setup in Cambodia, 2006–10
An initial structure for the Local Innovation Support them to the lead LISF partner in the province. After a
Fund (LISF) in Cambodia was designed based on a fea- preliminary review of the proposals, this partner for-
sibility study carried out in 2005–06. From the start, it warded them to the LISF National Steering Committee
was decided to operate the LISF as a revolving fund. for a final decision.
Farmers could apply to the LISF for a loan, on which In 2008, the LISF scheme was expanded to 11
interest was charged. This setup was seen as the best provinces involving a total of 20 NGO members of Pro-
way to make farmers feel more responsible for carrying linnova–Cambodia, but it proved too difficult to ensure
out LISF activities and to replenish and expand the ini- the necessary capacity building and the quality of the pro-
tial fund, linking it to existing community-based sav- posals and ensuing experimentation. It was also challeng-
ings and credit schemes. From 2005 to 2008, LISF pilots ing to handle the varying degree of ownership by farmers
were established in three provinces, each with a differ- and local support institutions as well as to monitor the
ent organization playing the leading role, overseen by an results. Moreover, it was difficult to attract funding from
LISF National Steering Committee coordinated by the the national government and from international donors.
Cambodian Center for Study and Development in In response, starting in 2011, a new structure was
Agriculture (CEDAC), which also coordinates Prolin- designed to implement the LISF through a farmer-
nova–Cambodia. Although LISF operations were governed, centralized national fund under an existing
highly decentralized in operational terms, the three farmer organization at the national level, Farmer and
provinces followed a common procedure. Fund Nature Net (FNN). CEDAC and other Prolinnova–
requests by individual farmers were first sent to a Cambodia partners play solely an advisory role to the
farmer association, which compiled and forwarded FNN.
MODULE 5: INNOVATIVE ACTIVITY PROFILE 4: PROVIDING FARMERS WITH DIRECT ACCESS TO INNOVATION FUNDS 441
NOTES 6. Another method would be to look at trade statistics.
Module 5 Overview 7. See in particular USAID (2008).
8. World Bank (2009) provides a data-capture template
1. See the infoDev Monitoring, Evaluation, and Impact that helps to implement this diagnostic tool.
Assessment study at http://www.idisc.net/en/Page.MEIA
9. For further information on value chain analysis, see
.Study.Overview.html.
FIAS (2007) and World Bank (2009).
2. For example, through intellectual property rights (IPRs)
10. For further information on institutional mapping, see
to promote greater impact of the research and innovations
World Bank (2009).
emanating from an institution (for example, by licensing
technology to partners). 11. This project continues; the preliminary results described
here were transmitted in an interview with the author.
3. Financing instruments for agricultural innovation are
discussed in module 6. 12. See GEF (n.d.) and Negeli-Ganz (2008).
4. See World Bank (2009b), which suggests this approach
for cluster evaluation; with some modification, it is suitable Thematic Note 5
for various business development programs.
1. Many published IP policies can provide guidance for
developing these policies; Kowalsky (2007) addresses the
Thematic Note 3 role and structure of institutional policies.
1. The Agribusiness Community of Practice recently
launched by infoDev (www.infodev.org) raises awareness of Thematic Note 6
the utility and need for agribusiness incubation. For more
details on agribusiness incubators, see infoDev (2011). 1. This report, based on research into 31 agricultural
investment funds, is a more general overview of investment
2. Examples of incubator models included in this section
than this thematic note and is a useful and up-to-date
are drawn from infoDev (2009), which assesses the best
source of trends. It also contains seven case studies and
international practices for ICT incubators and includes
models of agricultural investment funds. The report
case studies from Argentina, Chile, Colombia, Jordan, and
focused primarily on sub-Saharan Africa and transitional
South Africa.
economies and identified over 80 investment funds working
3. This section is drawn from infoDev’s Incubator Toolkit in agriculture and rural development.
(www.idisc.net).
2. Probably the best known example, which has been repli-
4. This section is drawn from infoDev’s Toolkit on Busi- cated by many countries, is the US Small Business Invest-
ness Incubation. The forms noted in the section can be ment Research program. See http://www.ncbi.nlm.nih.gov/
accessed via the infoDev site: www.idisc.net. books/NBK9607/.
5. Sally Hayhow, referenced in infoDev’s Incubator Toolkit 3. For examples of angel and seed investing in agriculture,
in the section on “The Role of the Incubator Board” see de Kleene (n.d.) and the presentation “Angel Investing in
(http://www.idisc.net/en/Article.163.html). Agriculture” (docstoc. www.docstoc.com/docs/10759/Angel-
6. Patient capital is long-term capital invested without Investing-and-Agriculture).
expectation of a quickly realized profit. 4. An important model is Yissum Technology Transfer at
Hebrew University of Jerusalem, which is responsible for
Thematic Note 4 commercializing an array of successful products that gener-
ate over US$2 billion in worldwide sales every year. See
1. For details on a cluster policy approach, see World Bank http://www.yissum.co.il/.
(2009). 5. There are many descriptions of venture capital; see, for
2. For details on a value chain approach, see FIAS (2007). example, Wyse (2007).
3. For a concise but detailed discussion, see World Bank 6. The technical definition is that the IRR of an investment
(2009). is the discount rate that makes the Net Present Value (NPV)
4. For analytical work on this issue see Guiliani, of the investment’s cash flow stream equal to zero. There are
Pietrobelli, and Rabelotti (2004, 2005) and World Bank many ways to measure economic development and social
(2009). good which are beyond the scope of this note.
5. For a detailed description of advantages and disadvan- 7. There is a persistent myth that a large percentage of
tages of the cluster mapping method, see World Bank new businesses in the developed world receive bank loans
(2009). and venture capital funding. In the United States, the
UNIDO (United Nations Industrial Development infoDev’s Business Incubation Toolkit, and links to develop-
Organization). 2008a. “Evaluación Independiente ing country regional and national incubator associations:
NICARAGUA; Fortalecimiento y Difusión del Desarrollo www.infodev.org/idisc
de Conglomerados en Nicaragua (UE/NIC/05/ The United States National Association of Business Incuba-
001); Fortalecimiento y Difusión del Desarrollo de Con- tors: www.nbia.or
OV E RV I E W
EXECUTIVE SUMMARY
charge of science and technology, while others establish a
he “enabling environment” for agricultural innova-
T
higher-level entity that brings relevant ministries together
tion encompasses factors that influence agricul- to coordinate national innovation policy. In most coun-
tural innovation positively but are controlled by tries, the overall objective of the national innovation policy
policy domains other than agricultural innovation policy. is to facilitate the transition toward a knowledge economy,
An agricultural innovation policy seeks coordination with resulting in increased competitiveness and sustainable eco-
these other domains to ensure that together they enable nomic growth. A national innovation policy defines the
agricultural innovation. Cross-cutting policy issues affect- roles and functions of actors and stakeholders within the
ing agricultural innovation include policies to reduce national innovation system (NIS), provides an overall
poverty and sustain the environment, to foster collaboration framework for innovation policies specific to particular
between the public and private sectors, and to build social sectors, and sets priorities across sectors and technologies.
capital more generally. It creates positive conditions for innovation by investing
Three clusters of enabling factors for agricultural inno- in public goods essential for an innovative knowledge
vation appear to require attention and investment in most economy.
developing countries: (1) innovation policy and correspond- Regulatory frameworks important for agricultural inno-
ing governance structures to strengthen the broader frame- vation include those for IP; biosafety; and standards and
work for agricultural innovation policies; (2) regulatory technical regulations related to agricultural health and food
frameworks that stimulate innovation directly (such as IPRs) safety and quality aspects. Countries will need assistance to
or indirectly (standards that stimulate trade) or steer inno- develop legislation, assess the options from which they can
vation towards certain preferred outcomes (safer food); and choose, develop their regulatory agencies, and invest in
(3) accompanying agricultural investments in rural credit, standards-related infrastructure.
infrastructure, and markets. Better coordination of agricultural innovation invest-
Innovation policy is a new area, and in most countries ments with accompanying rural investments should lead to
the governance structure for innovation is only starting to greater synergy and impact. Investments in rural financing
emerge. A particular challenge is where to assign responsi- systems will adopt a more holistic approach to financial ser-
bility for innovation policy within the government struc- vices, including credit, savings, money transfers, leasing, and
ture. Some countries delegate this task to the ministry in insurance. Investments in roads and market institutions and
449
infrastructure help to improve agricultural productivity, have to interact and seek coordination with these other pol-
reduce marketing costs, increase profit margins, and open icy domains to ensure that together they enable agricultural
up new opportunities for innovation. innovation in the most positive way. This interaction may
These policies, investments, and regulatory reforms will possibly lead to collaboration in the form of joint projects
trigger significant changes, such as improving the access of or programs, although not necessarily.
agricultural products to foreign markets, increasing private
investment in agricultural R&D, and fostering the use of
The agricultural innovation policy landscape
more sustainable agricultural practices. Policy measures will
be needed to ensure that people are not left behind and Figure 6.1 sketches the most relevant policy domains shap-
make the transition to more promising economic activities. ing agricultural innovation. At the most aggregate level,
political stability is by far the most critical, overarching fac-
tor for any innovation system. Without such stability,
RATIONALE FOR INVESTMENT
investments in innovation activities (particularly those with
A key characteristic of the innovation systems approach is long time horizons, such as plant breeding) are too risky to
its holistic perspective on innovation as a multifaceted, iter- be attractive. Moreover, war and civil unrest often affect the
ative process that is very much shaped by the context within knowledge infrastructure (research stations are destroyed,
which it takes place. For that reason, national innovation libraries plundered, and so on) and, by uprooting people,
policies are usually formulated as overarching policies try- lead to a loss of knowledge and experience of agricultural
ing to coordinate a wide spectrum of policy domains— practices and trade relations.
science and technology policy, education policy, economic At the same time, it is important to realize that innova-
policy, industrial policy, infrastructure policy, taxation pol- tion in itself can be very destabilizing, because it comes with
icy, and justice policy, among others—in such a way that what Schumpeter labeled “creative destruction.” New prod-
together they create an environment that enables and stim- ucts and new production methods take over from old ones
ulates innovation in the most positive way. Such overarch- and in that process destroy old jobs, vested interests, and
ing coordination is only possible with strong, high-level sometimes whole industries. As a result, innovations may
political support, often in the person of the prime minister encounter much opposition and catalyze social unrest.
or president chairing the council in charge of national inno- Creating new opportunities for those who lose their jobs
vation policy.
Sector-specific innovation policies (such as the policy Figure 6.1 Policy Spheres Shaping the Environment for
for agricultural innovation) more or less replicate the Agricultural Innovation
national innovation policy’s overarching and coordinating
nature, but they will often have considerably less political Political
stability
clout to influence policies outside their domains. For exam- Macroeconomic policies
ple, a sector-specific innovation policy will have little influ-
ence over the adoption of a tax regime for R&D. Such a Agricultural
matter is more often dealt with at the national level. policy
One problem with the holism of the innovation system
approach is that it tends to incorporate its enabling envi-
ronment. Because innovation systems (or for that matter Infrastructure
Agricultural
Education
innovation
any soft system) do not exist “out there” as objective entities policy policy
or realities but rather exist only “in the minds of those who
define them” (Daane 2010), there is no natural delineation
between what is core to an innovation system and what Science,
technology, and
should be considered its enabling environment. An artificial innovation policy
but potentially practical solution to this problem is to define
the “enabling environment” as those factors that influence
agricultural innovation positively but that are controlled by
policy domains other than the domain of agricultural inno-
vation policy per se. An agricultural innovation policy will Source: Author.
Regulatory frameworks
■ Investments in innovation policy and corresponding
governance structures that strengthen the broader Except for environmental standards, the other three regula-
framework for an agricultural innovation policy. tory frameworks (IPRs, SPS standards, and product stan-
■ Investments in regulatory frameworks affecting agricul- dards) have been around for decades, if not centuries. The
tural innovation, such as IPRs, sanitary and phytosani- international standardization and mutual recognition of
tary (SPS) measures, and biosafety regulations, aim to these frameworks have been on the political agenda for
stimulate private actors to invest in innovation, improve quite some time. The Paris Convention for the Protection of
the quality and safety of their products, and/or facilitate Industrial Property, launched in 1883, was one of the first
trade. international treaties on IPRs. It has been revised many
■ Accompanying rural investments such as investments in times and gained numerous signatories since then. Global-
rural credit, rural infrastructure (irrigation, roads, and ization and intensified trade have put increased pressure on
utilities), and agricultural markets. countries to adopt these frameworks; the international
In 1998, the Heads of State of the African Union (AU) Francophone African countries, approved a plant vari-
adopted the “African Model Law for the Protection of ety protection (PVP) chapter largely in line with UPOV
the Rights of Local Communities, Farmers, and Breed- standards as part of the 1999 Bangui Agreement. This
ers, and for the Regulation of Access to Biological decision was taken despite major opposition by inter-
Resources.” This watershed document addresses two national nongovernmental organizations.
issues—plant variety protection and access to biologi- In more recent years, the discussion in Africa
cal resources—based on the premise that both issues regarding PVP has moved from the AU to the subre-
are closely linked. The AU model law strongly favors gional economic communities, such as ECOWAS,
farmers’ rights over breeders’ rights: PVRs can be with- SADC, and EAC.c Their strategy is to harmonize the
held or nullified for reasons such as food security, (emerging) seed regulatory frameworks within their
health, biological diversity, and any other requirement communities to facilitate trade and to join forces where
of the farming community for propagation material of possible to reduce regulatory costs. For example,
a particular variety. The model law also emphasizes the ECOWAS and SADC each recently adopted the idea of
protection of Africa’s biological resources and tradi- setting up a common variety release system in their
tional knowledge. respective communities. Both communities have initia-
The model law was criticized heavily by UPOV and tives to work toward an integrated, regional PVP sys-
WIPO.a Discussions between the AU, UPOV, and WIPO tem. SADC, for example, developed a draft protocol for
in 2001 did not reconcile their differences. Yet the AU national PVP legislation. In other developing regions,
member states did not hold a unified position on the regional economic communities are keen promoters of
issues. Some members (Egypt, Kenya, South Africa, and standardizing PVP systems. Most African countries
Tunisia) belonged to UPOV many years before the AU seem to be moving toward adopting a PVP system that
developed its model law. In 2002 the African intellectual is compatible with the international UPOV standard—
property organization OAPI,b comprising some 16 but only after much heated debate.
Source: Author.
a. UPOV is the International Union for the Protection of New Varieties of Plants and WIPO is the World Intellectual Property
Organization. b. OAPI (Organisation Africaine de la Propriété Intellectuelle) was created in the early 1960s to replace the French
institute in charge of IPRs prior to independence. It manages a single IPR system across 16 countries. c. Economic Community
of West African States, Southern African Development Community, and East African Community.
A detailed econometric study of the impact of invest- whereas production increased by about 38 percent in
ments in rural roads in Bangladesh found substantial RDP and 30 percent in RRMIMP villages). The road
savings in household transport expenses, averaging effects are substantial for adult labor supply in RDP vil-
about 36 percent in villages participating in the Rural lages and schooling of both boys and girls. The overall
Development Project (RDP) and 38 percent in villages effect of road improvement on per capita consumption
participating in the Rural Roads and Market Improve- was estimated at 11 percent in both project areas.
ment and Maintenance Project (RRMIMP). Road This study clearly shows that investment in rural
improvement also significantly affected men’s agricul- roads unleashes the agricultural production potential
tural wages (which rose by 27 percent in RDP villages), of rural areas. The supply response to what looks like
fertilizer prices (which fell by about 5 percent in RDP modest input and output price changes is quite dra-
and RRMIMP areas), and aggregate crop indices (prices matic in the study areas. Much of this additional pro-
increased by about 4 percent in both project samples, duction found its way to the market.
Despite broad agreement about the importance of rural Market institutions and infrastructure. Investment
roads for linking farmers with markets, surprisingly little in market institutions and infrastructure was greatly
statistical evidence exists on the size and nature of the ben- affected by the market liberalization ideology that
efits of rural roads or their distributional impacts. Isolating dominated the economic policy debate during the 1980s
the impact of investments in rural roads on agricultural and 1990s. During the 1960s and 1970s, many governments
productivity from other enabling factors is not only chal- played an active, direct role in agricultural markets, and
lenging (Walle and Cratty 2004), but many other benefits donors provided significant direct investment in state-
must be considered—higher wages, better access to school- owned companies, government-controlled cooperatives,
ing and health services, and so forth (see box 6.2). and public marketing agencies. When these government-
Another rural infrastructure investment, irrigation, is dominated systems fell into disgrace because of their poor
considered an innovation in its own right as well as an performance, donor support for them evaporated. Difficult,
important enabler of agricultural innovation more generally. lengthy, and sometimes disruptive processes of privatization
A key reason cited for the limited impact of Green Revolu- and market liberalization marked the ensuing transition to
tion technology (improved varieties in combination with private market-based systems. It took some time to realize
modern inputs) in sub-Saharan Africa is the very limited that well-functioning markets would not inevitably emerge
area under irrigation in comparison to other regions, partic- (and foster agricultural innovation); some form of
ularly Asia. The underlying problem is that investment costs government assistance is often needed. Attention has
per irrigation unit are many times higher in sub-Saharan recently focused on strengthening a new architecture for
Africa than in Asia. Irrigation investment projects also tend agricultural market institutions and incentives, promoting
to fail more often in sub-Saharan Africa. The World Bank’s private commercial activity, and reorienting state activity to
Operations Evaluation Department identified specific weak- providing enabling regulatory and physical infrastructure;
nesses in irrigation investment projects, including irrigation as a result, donor investments in market institutions have
system design, operation and maintenance, cost recovery, begun to increase again (World Bank 2006).
and user groups. For example, cost-recovery schemes did not
improve operation and maintenance because revenues went
into the general treasury. Despite these weaknesses, World KEY POLICY ISSUES
Bank irrigation projects report good returns on average, but Aside from the more thematic policies that shape agricul-
these projects require above-average preparation and over- tural innovation, discussed previously, several cross-cutting
sight because of their complexity. policy issues affect agricultural innovation. They include
Source: Author.
(a) UNCTAD = United Nations Conference on Trade and Development; UNDP = United Nations Development Programme.
460
Box 6.3 Chile’s Innovation Strategy
Following a long period of stagnation from the mid- strategic board with public and private representation
1950s to the mid-1980s, Chile’s economy started to take has been created to set cluster-specific priorities. The
off, and for the past twenty-five years, it has been one of Strategic Board of the Agro-Food Cluster has identified
Latin America’s better-performing economies. The the following subclusters as the most promising for fur-
opposition parties elected to government after 1988 ther development and knowledge intensification: fruit,
continued the free-market policies introduced by the wine, processed food, pigs and poultry, and red meat.
military junta to a substantial extent but with a greater These priorities have been passed to the various STI
appreciation of government’s role in economic devel- funding agencies, which are organizing calls for pro-
opment, including its role in stimulating innovation. posals for these priorities or giving the selected clusters
Chile’s economy has been booming partly because of priority in more generic calls for proposals. Moreover,
high revenues from copper exports. To invest those rev- despite their name, competitive funding schemes are
enues wisely, the government decided to invest heavily being used to cement stronger links within the innova-
in moving away from a predominantly resource-based tion system by promoting cross-institutional collabora-
economy (agriculture and mining) toward a knowledge- tion between universities and research institutes and by
intensive economy. For this purpose, it created a national promoting public-private partnerships in the form of
innovation fund for competitiveness (FIC, Fondo de “technology consortia.” The latter instrument not only
Innovación para la Competividad), funded by a new tax cements collaboration between a research agency and
on mining, in 2005. A newly created national innovation the private sector but between companies that share a
council for competiveness (CNIC, Consejo Nacional de common technology platform.
Innovación para la Competividad), in which the various Since FIC’s creation in 2005, public STI investments
sectors and interest groups are represented, advises FIC in Chile have more than doubled in real terms (reach-
on how to allocate its resources, while an interminister- ing US$530 million in 2009). Public STI investments
ial committee on innovation (CMI, Comité de Ministros are projected to continue to grow by 10–15 percent per
para la Innovación) is responsible for implementation. year over the coming ten years.
As part of this new initiative, CNIC has formulated Parallel to the STI initiative, the Chilean government
a national innovation strategy. After extensive study established a major scholarship scheme (Becas Chile)
and consultation, CNIC selected five economic clusters in 2008, which will allow some 30,000 Chileans to study
on which to focus science, technology, and innovation abroad over the next ten years. The budget for this
(STI) investments: agro-food, aquaculture, mining, scheme is some US$6 billion and is also financed out of
tourism, and global services. For each selected cluster, a mining royalties.
Source: Author.
Second, improve the regulatory framework for innova- lifelong learning). Innovation also depends on the educa-
tion. Given the many actors within the innovation system tion of science and innovation specialists more specifically,
and their often conflicting interests, a set of rules and reg- which may involve among other things motivating students
ulations is needed (on dealing with IPRs, fair competi- to specialize in science.
tion, technical standards, health, and environment, Fourth, facilitate the creation, exchange, and diffusion of
among others) to create a playing field that is transparent knowledge. This is the core business of an innovation system.
and fair. Knowledge should not be limited to knowledge generated
Third, foster innovation through education. Innovation only by research organizations (and as such codified in
depends on the level of education in the general popula- scientific publications and patents) but should include
tion, including the knowledge and skills that people will the knowledge (a large part of it tacit) accumulated
need in the future and strategies to keep knowledge and within the economy of a country. It is important to make
skills up to date (in other words, to develop a capacity for sure that knowledge (both scientific and industrial) is
Many of the steps or components of developing an intermediary organizations, and networks advocat-
innovation policy do not occur chronologically but ing for policy change, policy makers can be pres-
simultaneously or in reverse order. They include: sured from different angles to change policies in a
certain direction.
■ Policy analysis. This step requires a thorough ■ Policy making. Policy makers need to get involved
understanding of existing policies and their influ- actively in the multistakeholder exchanges and
ence on the innovation system (in other words, their activities that occur to facilitate and realize innova-
interaction with institutions and actors). A func- tion. When policy makers are immersed in a subject,
tional analysis may be a useful input in grasping the evidence-based policy making becomes experiential
strengths and weaknesses of the policies in place. policy making. Policy makers learn, through interac-
tion and engagement with other system actors, how
■ Formulating policy advice. To a large extent, the policies influence the system and what changes
political context determines whether policy makers would be required.
are sensitive to evidence and how evidence reaches ■ Policy implementation. Often the job ends for pol-
them. Knowledge of the political context and entry icy makers when the policy is written down and
points for evidence and dialogue are essential. Influ- made official, yet stating the policy is only the start-
encing policy through research requires good data as ing point for change, not the end. An inclusive pol-
well as credibility of the institution presenting the icy-making process makes it more likely that the
data. For new ideas to be embodied in policies, it is policy will actually be implemented. When different
critical to prove that those ideas provide a solution stakeholders understand the need for policy change,
to a real problem. In presenting such evidence, com- have invested in it, and stand to benefit, there is
munications skills are highly important, and using a pressure on the one hand to enforce the policies and
diversity of communications methods increases the on the other hand there is a greater likelihood that
chances of success compared to relying on a single stakeholders will abide by the implemented rules
method or pathway. Through links with media, and regulations.
Source: Author, drawing on KIT 2011.
adequately stored and accessible. An important variable in the type of funding instruments to be used (subsidies, tax
this context is the quality of a country’s ICT infrastruc- breaks, patents, procurement, and so on); and (4) prioritize
ture and the density and quality of its Internet connec- and allocate public resources across the various innovation
tions. It is also important to stimulate the exchange of activities.
knowledge beyond national borders, which may involve These principal functions of an NIS also remain relevant
measures to improve the language capabilities of knowl- at the AIS level, but many of the policies shaping these
edge workers, stimulate attendance at international scien- functions at the AIS level are formulated as part of the
tific conferences, and create exchange programs and national innovation policy. For example, most investments
industry-specific study tours. in education affect all sectors, and the same is true for many
Fifth, mobilize and allocate resources for innovation activ- regulatory issues, such as IPR legislation and environmen-
ities. Funding of innovation activities can range from fully tal standards. At the same time, the agricultural innovation
public to fully private and everything in between, depend- policy may opt for sector-specific policies if the situation
ing on the type of industry and activity. The national inno- requires. For instance, it may choose to support plant
vation policy should: (1) define which innovation activities breeders’ rights or agricultural advisory services. For this
require public support; (2) define the tax base for public reason, it is important to coordinate the development of an
funds (general versus specific taxes; see box 6.5); (3) define agricultural innovation policy with the development of a
While Brazil has invested substantially in science and STI system: the university-business fund and the
technology since the 1970s, the economic impact of fund for science infrastructure. The infrastructure
these investments has been modest and uneven. In the fund is financed through a 20 percent levy on all of
1990s, the Brazilian science and technology system was the other sector funds. The sector funds have the
criticized for being too science oriented, placing little status of trust funds and are managed jointly by the
emphasis on innovation, and lacking stable funding academic community, industry, and government.
because of economic problems. The Ministry of Science The strong representation of industry in these funds
and Technology (MCT, Ministério da Ciência e Tecnolo- was a particular innovation for the Brazilian STI
gia) introduced major restructuring of the funding of system.
the science and technology system in 1999. It set up The sector funds serve four major government
sector-specific science, technology, and innovation (STI) objectives: (1) stabilize financial resources for medium-
funds (in part replacing older funds), which are financed and long-term R&D; (2) improve transparency in
through levies to be negotiated within each sector. In this funding decisions, merit reviews, and evaluations; (3)
way a substantial amount of new and more stable reduce regional inequalities; and (4) promote inter-
“private” resources were mobilized to finance STI of rel- action between universities, research institutes, and
evance to each specific sector. For sectors in which a levy companies. The selection of strategic sectors, their
was not feasible, the government increased the levy on respective shares of the funds’ resources, the blend of
foreign technology transfer payments from 15 percent to basic and applied research, the required overall
25 percent. The increase finances 4 out of 15 funds. budget, and sources of support are all jointly decided
Of the 15 funds that have been established, 2 are by the academic community, private sector, and
not sector-specific but focus on bottlenecks in the government.
national innovation policy and make sure that they are agricultural innovation and how to improve and modernize
consistent. it. At the same time, NIS thinking is influencing AIS think-
ing in important ways:
POTENTIAL BENEFITS
■ Far greater emphasis is placed on private R&D and inno-
The development of a national innovation policy usually vation activities by private firms. Agricultural research
reflects the priority that a country assigns to knowledge as and extension were traditionally viewed as government
an important (if not the most important) source of future responsibilities. Relatively little attention was given to
economic growth, especially as capital accumulation levels involving the private sector.
off and the transition toward a capital-intensive economy is ■ Education receives greater emphasis as an important
complete. A national innovation policy helps shift the enabling factor in agricultural innovation, both on the
emphasis in macroeconomic policy from physical capital to farm and in research and extension agencies.
human and social capital. ■ The regulatory framework’s importance in shaping inno-
A national innovation policy can also help to create more vation is more widely recognized; for instance, biofuel
coherence in a broad range of government policies dealing targets play an important role in shaping the biofuel
with issues such as economic development, education, com- innovation agenda.
petitiveness, trade, and R&D investment. More coherent ■ Innovation driven by market demand and market
policies should help to improve the overall effectiveness of opportunities is given greater emphasis.
the NIS. ■ More attention is paid to improving the mobilization,
The more prominent role attributed to knowledge in inclusion, and coordination of innovation actors and
economic development has sparked renewed interest in stakeholders.
The Unleashing Productive Innovation Project is a ■ Fostering sector-specific capacity for productive
major World Bank effort (its total budget is US$223 innovation (US$85 million). This component will
million for five years, of which US$150 million is loan develop critical capacities in three priority areas:
money) to assist Argentina to become more innovative, biotechnology, nanotechnology, and ICT. Resources
promote diversification into more knowledge-intensive will be allocated through competitive funding
economic activities, and stimulate economic growth. schemes designed to foster public-private and
The project, which strongly reflects a national innova- private-private collaboration. The private business
tion system approach, consists of the five components: community will play a lead role in these funds, both
in specifying the research agenda and funding it.
■ Developing human capital for productive innova- ■ Upgrading research infrastructure (US$36 mil-
tion (US$28 million). This component fills critical lion). Funds will be allocated on a competitive basis
human capital gaps in the national innovation sys- using predefined selection criteria, such as the
tem by developing training programs for “technol- extent to which the beneficiary is connected with the
ogy brokers” and “technology managers” to profes- productive sector.
sionalize and improve innovation processes. It also ■ Strengthening the policy and institutional frame-
offers scholarships to pursue studies in information work for innovation (US$20 million). This compo-
and communication technology (ICT) and reduces nent will strengthen the policy-making capacity of
Argentina’s shortages of qualified personnel. the Ministry of Science and Technology, strengthen
■ Support for new knowledge-based companies (US$ the capacity of the National Agency for the Promo-
54 million). This component promotes the develop- tion of Science and Technology in selected areas,
ment of new knowledge-based companies through and support dissemination of project activities.
two complementary activities. The first is a pilot of
an early-stage venture capital fund. The second is the Although the project does not target the agricultural
creation of a proactive, market-driven incubation sector specifically, the sector can benefit from it in var-
cycle—from the initial idea to a commercial project,
ious ways, especially through the biotechnology fund
through early-stage venture capital investment—by
included in component 3. Indirect spillins from the
establishing “deal flow” promoters that are mainly
remunerated on a fee-for-success basis. other components are likely as well.
A functional analysis is useful to rapidly assess a policy interventions. The standard steps in a functional
national or sectoral innovation system.a It can help to analysis of an innovation system are:
identify the principal actors within an innovation sys-
tem and the linkages and interactions between them. 1. Define the boundaries of the innovation system in
Weaknesses identified in such an analysis can form a focus. The level of aggregation in a functional
good starting point for formulating specific innovation appraisal can vary substantially. For example, one
(Box continues on the following page)
can deal with the business sector as one entity or dif- 3. Define the primary functions that the innovation
ferentiate it by sector, size, innovation profile, or system needs to perform. The “Actions Needed” sec-
some other feature. This process will enrich insights tion proposes five key functions that an innovation
into how the innovation system functions and hence system needs to perform. These functions are not set
help to fine-tune policy interventions. in stone but can be reformulated to match the spe-
2. Identify and engage the principal actors in each of cific context to which they apply.
the stakeholder groups within the innovation system, 4. Bring steps two and three together and map in a
including (1) the business sector, (2) the government matrix format how the different stakeholder groups
sector (including the principal policy-making, coordi- and their specific actors contribute to the different
nating, financing, and regulatory agencies for science, key functions. This exercise should help identify
technology, and innovation), (3) the research sector possible missing actors or weak links between actors
(research organizations, universities, and others), or stakeholder groups. Such mapping is best done
(4) technology transfer and other intermediary orga- on the basis of interviews with the various actors
nizations, (5) organized civil society (nongovernmen- involved in the innovation system. An alternative
tal organizations, consumer groups, trade unions, and is to make the map based on brainstorming sessions
the like), and (6) possible foreign innovation partners; with key experts.
Source: Author.
a. See Paterson, Adam, and Mullen (2003) and Ivanova and Roseboom (2006) for practical examples of applying a functional
analysis approach to national innovation systems.
Since the mid-1990s, the Organisation for Economic European Union publishes an annual European Innova-
Cooperation and Development (OECD) has conducted tion Scoreboard (EIS) to monitor the innovation per-
an array of studies on national innovation systems and formance of individual member nations as well as the
policies, covering its member and nonmember coun- performance of the European Union in relation to other
tries (including leading developing countries such as economies such as the United States, Japan, China, and
Brazil, Chile, China, and South Africa).a The OECD Brazil. The EIS methodology comprises seven innova-
methodology, based on the Oslo Manual: Guidelines for tion dimensions, grouped into three blocks:
Collecting and Interpreting Innovation Data (issued in
1992 and updated in 1997 and 2005), has been copied ■ Enablers: Captures the main innovation drivers that
frequently by other innovation system studies. The lat- are external to the firm and comprises two dimen-
est edition of the Oslo Manual includes specific guide- sions: (1) human resources (measures the availabil-
lines for the implementation of innovation surveys in ity of highly skilled and educated people) and (2)
developing countries, based largely on experience with financial resources (measures the availability of
the methodology in Latin America. finance for innovation projects and the support of
In 2000, the European Union adopted its “Lisbon governments for innovation activities).
Strategy,” which aims to “make Europe the most ■ Firm activities: Captures innovation efforts that
competitive and the most dynamic knowledge-based firms undertake and comprises three dimensions:
economy in the world.” As part of this strategy, the (1) investment in innovation by firms (multiple
variables); (2) linkages and entrepreneurship In addition to EIS, several other international innova-
(captures entrepreneurial efforts and collabora- tion indices are produced, including the World Bank
tion among innovating firms and also with the Knowledge Economy Index, the UNCTAD Innovation
public sector); and (3) throughputs (IPR registra- Capability Index, UNDP Technology Achievement Index,
tion and balance of payments regarding technol- the RAND Science and Technology Capacity Index, the
ogy royalties). WEF Global Competitiveness Index, the INSEAD Global
■ Outputs: Captures the outputs of firm activities
Innovation Index.b The indices use different approaches,
and comprises two dimensions: (1) innovators
but rankings are reasonably stable across indices. Incom-
(measures the number of firms that have intro-
duced innovations onto the market or within their plete and poor data cause the rankings of countries at the
organizations) and (2) economic effects (captures bottom to be considerably less stable, however. One criti-
the economic success of innovation in employ- cism of current measurement frameworks is that they
ment, exports, and sales arising from innovation often fail to measure the social impacts of innovation (on
activities). well-being and poverty reduction, for example).
Source: Pro Inno Europe 2010; World Bank 2010; OECD 2010.
(a) The OECD Reviews of Innovation Policy comprehensively assesses innovation systems in individual OECD members and
nonmembers, focusing on the role of government. The reviews provide recommendations to improve policies affecting inno-
vation performance, including R&D policies. Each review identifies good practices from which other countries can learn
(www.oecd.org/sti/innovation/reviews).
(b) UNCTAD = United Nations Conference on Trade and Development; UNDP = United Nations Development Programme;
WEF = World Economic Forum; and INSEAD = originally Institut Européen d’Administration des Affaires (European Institute
of Business Administration).
research and extension services established decades ear- tion that are not designed specifically for agribusiness but
lier. These agencies are required to interact more vigor- which agribusiness can use. Business incubators, risk cap-
ously with STI agencies that have a far wider scope and ital, technology consortia, technology parks, technology
compete with nonagricultural agencies for resources from subsidies, and private R&D incentives (subsidies or tax
STI funding schemes. National innovation policies also deductions) are examples (many of which are discussed in
tend to introduce new instruments to promote innova- module 5).
■
Stability. Innovation requires sufficiently stable frame-
work conditions, institutions, and policy.
Ability to adapt. As the environment for innovation
evolves, and innovation evolves along with it, governance
their impacts. This note provides examples of the roles that
actors need to be able to adapt.
innovation policy and its governance have played in the
■ Ability to steer and give direction. A related capability is
development of innovation systems in Finland, Republic of
the governance system’s ability to provide direction to
Korea, and South Africa. Based on these cases, the note iden-
actors and steer the innovation system as a whole. The
tifies governance activities relevant to innovation systems
ability to provide direction requires commitment and
for agriculture in developing countries and discusses the
leadership from policy makers at the highest level.
related policy issues, lessons, and recommendations emerg-
ing from the case studies. A key issue arising from the cases Governance of innovative activity is not provided by
is that well-functioning innovation systems critically government alone. The research and business sectors as well
depend on how well governments can bring together and as other stakeholders such as NGOs play important roles in
coordinate the activities of the various actors and stake- many aspects of the governance of an NIS. For example, a
holders fundamental for advancing science, technology, and society’s accumulated social capital can make an important
innovation in various sectors of the economy. contribution to innovation by increasing trust among the
actors, which makes joint innovation efforts as well as com-
BACKGROUND AND CONTEXT munication and sharing of knowledge between the actors
Governance concerns the mechanisms by which decisions are easy and successful.
made in an organization, whether public, private, or non- Innovation system governance at the sectoral level is an
profit. Governance has several dimensions, including power, important part of overall innovation system governance. In
culture, incentives, leadership, and coordination. In gover- the agricultural sector, the earliest attempts at coordinating
nance of an NIS, the systems and practices for setting priori- AIS were centered on strengthening agricultural research
ties and agendas, designing and implementing policies, and coordination. A number of developing countries have estab-
obtaining knowledge about their impacts receive special atten- lished research governance bodies, but they tend to repre-
tion (see OECD 2005). A number of factors impinge on the sent only a narrow range of AIS stakeholders, consisting pri-
efficiency of the governance of an NIS—in other words, the marily of ministerial representatives or researchers. They
extent to which policy processes have the greatest effect with a have often lacked a consistent, rigorous process for setting
given use of resources (OECD 2010). Evidence indicates that priorities. The current movement to improve the represen-
efficient governance depends on certain qualities, including: tativeness of these governance bodies and their mode of
operation is encouraging, however (for example, seeking to
■ Legitimacy. The policy actors and approaches adopted in represent a wider range of stakeholders and regions,
policy processes have to be widely appropriate and improving transparency, and using diverse prioritization
accepted for the tasks at hand. tools). The overall trend is toward strengthened research
469
governance and multidisciplinary NIS governance (as dis- agencies involved as well as down through the various
cussed in this note), wherein agriculture is one sector decision-making levels. There is a strong element of con-
among many. Some countries have made specific efforts in sensus building among the main stakeholders in the design
AIS governance, however. Typically these efforts center on and implementation of policies. Companies and the
subsectoral governance and coordination—for instance, research community are often involved in policy discussions
through commodity boards and subsector networks— as experts or through their branch organizations. Innova-
rather than on national agriculture/rural innovation gover- tion policy also explicitly aims to support collaboration and
nance structures (like Chile’s FIA and Australia’s Rural networking between industry, universities, and public
Research and Development Council). Module 1 discusses research agencies. For example, the R&D programs com-
innovation coordination in agriculture in greater detail and missioned by Tekes require collaboration by industry, uni-
provides examples of AIS coordination and governance at versities, or public research agencies.
the macro, meso, and micro levels.
Although this TN discusses NIS governance, benefits,
Republic of Korea
policy issues, and lessons primarily from developed coun-
tries, it can help identify relevant issues and lessons for Korea’s government has taken an active approach to NIS
developing countries and their AISs. Finland, Korea, and governance, especially since the mid-2000s. As in Finland, in
South Africa have been chosen as examples because, in dif- Korea the NIS involves high-level government officials
ferent ways, they represent NISs in which government actors (ministers and other key stakeholders) in designing STI pol-
and agencies play an important role. They also represent icy through the Presidential Advisory Council for Educa-
NISs at different phases of development to illustrate gover- tion, Science, and Technology (with representatives from
nance challenges from different viewpoints. A separate note industry, academia, and research) and the National Science
in this module discusses overall innovation policy issues. and Technology Council (formed by government minis-
ters). The role of ministries in implementing policy down to
the level of individual R&D programs and projects is note-
Finland
worthy, especially within the Ministry of Education,
Finland began to apply the NIS concept before many other Science, and Technology (MEST).1
countries, and its NIS has a relatively streamlined gover- Unlike Finland, in Korea the NIS has a complex gover-
nance structure, developed in the mid-1980s and early nance structure. Government science and technology poli-
1990s. The Finnish Funding Agency for Technology and cies have long roots, and the government’s overall role has
Innovation (Tekes, teknologian ja innovaatioiden kehit- been pronounced. A key challenge for Korea is to govern its
tämiskeskus), was established in 1983, and R&D programs rapidly growing portfolio of policy measures (OECD
soon followed. A key characteristic of the Finnish system is 2009b), and Korea is responding with efforts to improve the
that high-level government officials (prime minister, coherence of its policies through horizontal coordination
finance minister) as well as representatives from universi- (between advisory councils and ministries) and vertical
ties, public research organizations, and industry participate coordination (between ministries and the government
in the Research and Innovation Council, which develops research institutes).
national guidelines for innovation. Operational responsibil- A third characteristic of the Korean system is the duality in
ity for policies is delegated to the Ministry of Education and corporate structures. Large conglomerates or multinationals
Culture (for basic research), the Ministry of Employment (chaebols, literally “business families”) dominate research,
and the Economy (for applied research and the enabling development, and industrial transformation, whereas SMEs
environment for innovation), and other ministries. remain relatively underdeveloped. In this sense, Korea is still
A second important characteristic of the Finnish NIS is a mixture of an advanced and developing country. This dual-
that the main funding agencies (Academy of Finland for ity has crowded out entrepreneurship and may have ham-
basic research and Tekes for applied research) enjoy consid- pered technology diffusion and knowledge spillovers
erable autonomy in implementing programs, introducing throughout the system. Especially compared to Finland, col-
new policy instruments, and managing these programs and laboration and networking in Korea between companies, uni-
instruments on a day-to-day basis. A third characteristic is versities, and research institutes is less pronounced, though
the strong tradition of collaboration and coordination collaboration within chaebols is extensive. A central challenge
throughout the NIS, both across the main ministries and for the Korean NIS is to encourage more collaboration and
Government, parliament
• Policy guidelines
• Overall policy coordination Government
Coordinating bodies
Vertical governance
Agencies
• Policy implementation R&D agency Research council
• Funding
• Intelligence, follow-up Think tanks, etc.
Public research
• R&D performers Sectoral research institutes
• Technology transfer
• Intelligence Universities Polytechnics, etc.
Horizontal governance
The ability of Finland’s innovation system to perceive assess how globalization would affect various sectors
and respond to challenges is best seen in the way that and their employment prospects in Finland and to
innovation policy reacted to globalization. The impact develop corresponding policies to respond to those
of globalization was felt most acutely in the business challenges by altering the business environment. The
sector, as R&D increasingly moved to foreign locations final report was based on numerous background stud-
and price competition became tight, especially in tradi- ies commissioned from national think tanks and
tional industries. The emergence of countries such as experts, over 20 sectoral dialogues between employers
China and India as increasingly competitive locations and employee unions, and the work of the high-level
for manufacturing, research, and development raised steering group appointed by the project. The project
concern among labor unions and other national inno- was intended to feed into the ongoing, decentralized
vation system stakeholders. Public research organiza- process to formulate a globalization strategy for Fin-
tions felt building pressure to compete globally for the land which subsequently influenced various areas of
best students and become more engaged internation- policies, such as taxation, R&D programs, and interna-
ally. In 2004, the government launched a project to tionalization schemes to support companies.
The Korean experience following the Asian financial cri- A coordinated mix of policy measures was put in place:
sis highlights the importance of capabilities to perceive regulations to improve the environment for venture
and act on challenges to innovation at the national level. startups and their growth; government-backed venture
The crisis caused significant downsizing among large funds and tax incentives for investors; and measures to
companies, mass layoffs of highly skilled personnel, and support research. Among other things, these measures
large reductions in spending on R&D. Aside from fuelled rapid expansion in the number of corporate
increasing its expenditures on education, the Korean R&D labs, with SMEs accounting for much of this
government responded by increasing its R&D budget, to increase. This success cannot be explained by policy
offset the decline in corporate spending. It also used the intervention alone, as it was aided by rapid innovations
crisis as an opportunity to develop technology-based in digital and other technologies, but government
small and medium enterprises (SMEs), using the action shaped an environment that enabled new busi-
Special Law to Promote Venture Firms enacted in 1998. nesses to seize emerging opportunities.
Source: OECD 2009b.
Box 6.11 A White Paper and Foresight Exercises Facilitate Changes in South Africa’s Innovation Policy
In 1996, a White Paper on Science and Technology laid and absorptive capability were singled out as a key
down the new, post-apartheid government’s priorities constraint on technological developments and innova-
in science, technology, and innovation. Foresight exer- tion. The preparatory work on the White Paper
cises followed at the end of the 1990s and acknowl- resulted in a national R&D strategy, endorsed by the
edged South Africa’s many socioeconomic challenges. government in 2002. It propelled an innovation system
These combined efforts clarified the challenges to gov- approach to the forefront in policy design and high-
ernment officials, highlighted weaknesses of the lighted the importance of moving toward an innova-
emerging national innovation system, and suggested tion policy with a broad mandate to meet socioeco-
actions to address these challenges and weaknesses. nomic needs through science and technology as well as
Human resource issues related to poverty, education, innovation.
Source: OECD 2007b.
(poverty, segregation, one-sided industrial and company in developing countries) and to align policies with existing
structure) and the narrow science and technology focus of structures and framework conditions. These capabilities are
the apartheid regime. These challenges prompted the South usually embedded in ministries (or department equivalents),
African government to adopt a broader and more holistic which typically also design policies and steer funding to sec-
innovation system approach to policy that could better toral agencies or directly to public research organizations.
direct activities toward common socioeconomic goals. This level of governance is often vertically linked to the gov-
ernment through various councils and advisory committees.
Ministries also frequently establish dedicated coordina-
Establishing and/or strengthening capacity in tion bodies to ensure better coordination between ministe-
coordination bodies to set policy priorities and rial and other agendas, especially in broad technology areas
coordinate agendas
such as nano-, bio-, or environmental technologies. These
Capabilities to set policy priorities and coordinate agendas areas require the involvement of many stakeholders and con-
are important to economize on scarce resources (especially sultation processes to elicit their views. These coordinating
Box 6.12 Organizations Involved in Prioritizing and Coordinating Policy in Finland, Korea, and South Africa
Research and Innovation Council, Finland. The strate- well as the formulation of programs and projects. It also
gic development and coordination of science, technol- promoted public awareness of science and technology.
ogy, and innovation (STI) policies in Finland are the In the 1980s and 1990s, a range of ministries
responsibility of the Science and Technology Policy launched R&D programs, sparking demand for better
Council, an advisory body to the government. The coordination. The National Science and Technology
composition of this council is distinctive in some Council (NSTC), established in 1999 and chaired by the
respects and underlines its capacity to perceive chal- president, has since been Korea’s highest decision-mak-
lenges, draw overall policy guidelines, and facilitate ing body on STI. As a cross-ministerial body, NSTC has
coherence, consensus-building, and coordination a central role in working across ministries to coordinate
throughout the system. It involves a wider range of sec- the expanding policy priorities and agendas. Its strong
tors than similar councils. The chairmanship is held by links to MEST are underlined by the fact that MEST
the Prime Minister, emphasizing its top-level status, provides the NSTC with a secretariat. The NSTC’s hor-
and involves key ministers (for employment and the izontal scope at the sectoral level is strengthened
economy, education, and finance, for example). The through five subordinate expert committees on key
council also includes representatives from academia, industrial technologies, large-scale technologies, state-
industry, and labor organizations. It dates to 1963, and led technologies, cutting-edge converging and interdis-
its mandate for technology was added in 1986. ciplinary technologies, and infrastructure technologies.
Ministry of Science and Technology and National Department of Science and Technology, South
Science and Technology Council, Korea. The Ministry Africa. The case of South Africa’s Department of Sci-
of Science and Technology (MoST), which became the ence and Technology (DST) is interesting because this
Ministry of Education, Science, and Technology department gained responsibility over STI just as
(MEST) in 2008, was established in 1967. Its importance South Africa’s policy makers endorsed an innovation
grew along with Korea’s increasing emphasis on system approach. The shift toward innovation
research, development, and innovation in the 1980s and occurred in response to the enormous socioeconomic
1990s and the broadening of the innovation policy challenges of post-apartheid South Africa. Subse-
agenda in the 2000s. It commanded a large budget and quently DST has played an important role in setting
had a broad mandate for policy design, coordination, priorities and agendas based on white papers and fore-
and evaluation of science and technology in Korea, as cast exercises.
Source: Lemola 2002; Dahlman et al. 2006; OECD 2007b, 2009b.
Tekes, founded in 1983, is based in the Ministry of are planned with companies, public research organiza-
Employment and the Economy. It has relative auton- tions, and other agencies, the funding is competitive,
omy to set priorities and agendas in specific technol- and companies must contribute complementary funds
ogy areas, following guidelines developed at higher (usually around 50 percent). The idea is to stimulate
levels (the Science and Technology Policy Council and collaboration between program partners and maxi-
ministries). Tekes’ role eventually expanded to include mize benefits from knowledge spillovers. Each pro-
channeling the bulk of public funds for R&D to indus- gram has a coordinator, a steering group, and a man-
try and public research agencies, with the exception of ager from Tekes. Funding for programs ranges from
basic research agencies. Its major funding instruments €20–150 million, generally over three to five years.
include R&D grants and loans for companies and Hundreds of programs have been initiated since 1983;
applied research grants for public agencies. Research 29 operated in 2009. These programs have played an
grants are typically allocated via technology programs important role in promoting entrepreneurship,
planned and implemented with companies and introducing new areas of technology, and renewing
research institutes. Although the themes of programs industries.
Source: Ylä-Anttila and Palmberg 2007; Tekes (www.tekes.fi).
Note: Tekes = Finnish Funding Agency for Technology and Innovation.
Box 6.14 Strategic Intelligence Capabilities and Activities in Finland, Korea, and South Africa
Finland. Tekes monitors results and assesses the impacts technology policies by, for example, forecasting science
of projects it funds. For monitoring, Tekes collects proj- and technology development trends; analyzing and
ect effectiveness information at the beginning and end evaluating science and technology programs by all
of each project and three years after its conclusion. An ministries; conducting research into domestic and
impact assessment is done to gain feedback on how the overseas research planning, evaluation, and manage-
project attained its objectives, how effective the project ment systems; and disseminating R&D policy infor-
was, and what could be learned from the project to mation and data.
improve Tekes’ future operations and strategies. Tekes South Africa. South Africa has also been developing
also follows international comparisons and reports, its capacity to undertake policy assessments and analy-
such as comparisons commissioned by the Organisation sis. These capabilities have been developed within the
for Economic Co-operation and Development, Euro- main ministries, agencies, and advisory bodies. Of par-
pean Union, and others, and conducts peer reviews of ticular importance is the Centre for Science and Tech-
innovation activities in various countries. nology and Innovation Indicators (CeSTII), which is
Korea. The Korean Institute of Science and Technol- responsible for national R&D and innovation surveys
ogy Evaluation and Planning (KISTEP) is the nation’s based on a memorandum of understanding between
main STI planning agency and supports the Ministry the Department of Science and Technology and Statis-
of Education, Science, and Technology’s policy plan- tics South Africa in 2004. Several universities also host
ning and coordination. Its specific functions are to for- research groups with a focus on technology and inno-
mulate, coordinate, and support major science and vation studies.
An innovation system approach can aid both policy design Innovation systems emerge gradually and organically if the
and implementation; policies also need to be implemented enabling environment is favorable. Knowledge flows and col-
to deliver innovation and growth. In particular, policy laboration cannot be created by policy, but policy can create
implementation may best be facilitated at the level of rela- suitable conditions for them to happen. Good governance is
tively autonomous agencies rather than ministries and central to the performance of an innovation system, and
departments where political and other issues may be inhibit- policies can strongly influence good governance. Practical
ing factors (Tekes is one example; TIA in South Africa may recommendations for establishing governance structures
be another). include the following general and tentative “steps”:
480
Box 6.15 Beyond TRIPS
The Agreement on Trade-Related Intellectual Property often contain obligations relating to domestic intellec-
Rights (TRIPS) came into effect in 1995, stipulating tual property policies that exceed the minimum stan-
that all signatories to the agreement should introduce dards set forth in TRIPS. Collectively, agreements with
a minimum amount of legislation to protect IPRs. intellectual property obligations comprise a landscape
This international obligation triggered a widespread referred to as “TRIPS-plus.” A recent report estimated
introduction of IPR legislation in developing coun- that close to 400 PTAs were in force by 2010, govern-
tries in recent years, as it became a requirement for ing more than half of global trade. Not only is the
entry into the World Trade Organization. More number of agreements growing, but IPR provisions
recently, in addition to TRIPS, developing countries are also occurring in increasingly diverse types of
operate in a landscape increasingly dominated by pref- agreements, from customs standards to anticounter-
erential trade agreements (PTAs). These agreements feiting agreements.
Source: Heydon and Woolcock 2009; Frankel 2009.
Ownership of genetic resources and traditional knowl- Further questions over rights to genetic resources
edge is an area where IPRs are increasingly considered are raised by the increased capacity for large-scale
a serious issue. R&D in crop improvement, for exam- DNA sequencing. Currently, many projects to sequence
ple, depends on the wealth of genetic material held plant genomes promise benefits to agricultural devel-
in farmers’ fields and national and international gene opment. The data and associated knowledge hold the
banks. Both the conservation of genetic resources and potential to assist in breeding for improved yields, dis-
access to them are critical for our future capacity to ease resistance, and countless other traits. There has
address global food security issues, including drought been continuing concern, however, in genome
tolerance, yield improvements, and resistance to dis- sequencing about the optimal use of IPRs that does
eases and pests. not impede innovation based on the new data.
Maintaining a balance between the preservation of Some argue that without the ability to patent, the
genetic resources and ensuring widespread access investment in further R&D is not warranted; others
depends on finding solutions that can work within a argue that allowing proprietary ownership allows
complicated cross-section of national, international, and for blocking patents that can slow or halt innova-
institutional policies. For example, in 2006 the research tion. While it is becoming increasingly difficult to
centers of the Consultative Group on International Agri- patent DNA sequences in the United States, a large
cultural Research (CGIAR) that maintained ex situ col- number of patent applications still contain claims
lections of plant genetic resources signed agreements to sequences in bulk. For example, CAMBIA’s
with the Governing Body of the International Treaty on analysis indicates that approximately 74 percent of
Plant Genetic Resources for Food and Agriculture (“the the rice genome is claimed in United States patent
Treaty”), which placed the collections they hold under applications.
the Treaty, and adopted a “Standard Material Transfer As this brief discussion indicates, future investments
Agreement.” Exchanges of genetic resources involving in policies and programs involving genetic resources
the CGIAR centers are now governed by this agreement, must include considerations of IPRs to support the
which includes IPR obligations. donors’ intended impacts on agricultural development.
Source: CAMBIA (“Mapping of Rice Patents and Patent Applications onto the Rice Genome”); Pollack 2010.
Note: The Standard Material Transfer Agreement can be accessed at this link: http://www.planttreaty.org/smta_en.htm.
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 481
critical if developing countries are to benefit sufficiently can be a way to jump-start a cycle in which increased pro-
from advances in STI over the next decades. tection of IP increases awareness of the value of innovation.
Box 6.17 shows an approach to increasing locally focused
R&D in Botswana, coupled with measures to raise public
MAJOR IPR-RELATED DRIVERS OF
awareness of new inventions and designs.
DEVELOPMENT
Types of IPRs differ in their influence on the innovation
Three main interrelated paths characterize mechanisms climate within low-income countries. Patents can be impor-
through which IPRs impact global poverty: (1) trade and tant IPR instruments for discrete inventions, as seen in box
foreign direct investment; (2) national capacity for innova- 6.18, which shows how a machine to prevent frost damage
tion and development of local commerce; and (3) technol- in fruit orchards was exported from Chile to important
ogy transfer. These paths are discussed in the sections that overseas markets. Other forms of IPRs offer greater oppor-
follow with full recognition of the oversimplification of this tunities to influence the domestic innovation and business
framework.2 Nonetheless, it serves as a useful compass for development climate, however. Trademarks, geographical
the analysis that follows. indicators, plant breeders’ rights, and seed registration laws
may garner comparatively less attention than patents in the
international press, but as noted, they often have more prac-
Trade and foreign direct investment
tical potential to affect agricultural development in low-
Box 6.15 showed how trade issues often drive IPR legisla- income countries. Box 6.19 describes how a trademark was
tion, with varied impacts. Studies of the relationship initially used to build a brand around Colombian coffee and
between IPRs, trade, and foreign direct investment in devel- how geographical indicators have been employed more
oping economies have covered a wide range of potential recently to maintain this brand. The success of this
paths of interaction in an attempt to determine whether approach led other countries to similarly distinguish their
stronger IPR policies in developing countries are likely to local produce in an international market, such as Pinggu
produce benefits for the world’s poor. While a significant lit- peaches from China. In this case, the agreement between
erature illustrates positive implications of stronger IPR poli- China and the EU on geographical indicators for peaches
cies on trade and foreign direct investment, there are from this region of China opened an export market for
caveats. Strict enforcement of IPR, for instance, may drive high-quality fruit previously recognized only within China.4
up the costs of imitating or copying inventions, which may
reduce growth in very low income countries that rely on
Technology transfer
these approaches and do not yet have the infrastructure to
accept foreign direct investment. Other work has shown The transfer of technology and knowledge remains perhaps
that stronger IPR policies can exacerbate income inequali- the most influential of the three drivers listed here in terms
ties in developing countries and that the flows from trade of IPR investments contributing to poverty reduction. Most
and foreign direct investment do not sufficiently impact the well-capitalized engines of innovation are in developed
very poor (Adams 2008). In short, the empirical work on countries, but increasing numbers are found in emerging
IPR policies, foreign direct investment, and trade in devel- economies. There is a real need to improve international
oping countries leaves unresolved questions about how the capacity for agricultural R&D targeted at poverty reduction
poor are affected over time, and debates will continue with as well as the flow of knowledge and technologies to benefit
further exploration of the issues.3 developing countries. Whether the “technology” that is
transferred refers to a novel plant variety, the tacit knowl-
edge of how to improve a food-processing practice, or an
National innovation climate
innovative business model for giving smallholder farmers
IPR legislation is one component of the climate for innova- access to microirrigation, making technology and knowl-
tion in a country, but legal instruments are not enough on edge available to improve the lives of the poor has both
their own to encourage investment in innovation. Without direct impacts (for example, by improving health, food
the active involvement of national researchers, there will be security, or access to water and sanitation) and indirect
little appreciation of the role of IPRs, and thus other invest- impacts (such as economic development). IPRs are an
ments will do little to encourage innovation. Interventions important factor in public-private partnerships transferring
that focus on protecting inventions in public institutions technologies, in the formalization of the knowledge and
Botswana Technology Centre (BOTEC) in Gaborone is National Design for Development Awards in 1999 to rec-
a research and technology organization established by ognize inventions and innovations that can offer solu-
the Botswana government in 1979. Operating under the tions to some of the problems faced by Botswana. As of
Ministry of Communications, Science, and Technology, 2010, three award ceremonies have been hosted. The
BOTEC has pursued the government’s policy objective World Intellectual Property Organization and African
of technology promotion and innovation as a tool for Intellectual Property Organization supported the award
developing the economy and improving the quality of ceremonies by sponsoring special awards for outstand-
life in Botswana. To strengthen research and develop- ing innovations in Botswana. BOTEC is contributing to
ment capacity, BOTEC has a longstanding involvement efforts to protect Botswana’s traditional knowledge by
and active participation with a number of local organi- chairing an Indigenous Knowledge Task Force, which is
zations, including the University of Botswana, Botswana drafting the indigenous knowledge section for the
Institution of Engineers, Botswana Export Develop- Industrial Property Rights Act.
ment and Investment Authority, Botswana Innovation BOTEC’s solar-powered hearing device was devel-
Hub, and some nongovernmental organizations. oped through a collaborative scheme with Motse Wa
Botswana’s Industrial Property Rights Act (1996) Badiri Camphill, a nongovernmental organization
provides a legal framework for the country’s innovators that conducted field tests, raised funds for design
to seek intellectual property protection for their intellec- improvements, branded the device with the SolarAid
tual property. BOTEC has worked to improve intellec- name, and took it to market. SolarAid generated con-
tual property awareness in Botswana to assist inventors siderable interest and was used in many developing
to be more creative and benefit from their innovations. countries. BOTEC assisted Motse Wa Badiri Camphill
BOTEC’s intellectual property policy seeks to address a to set up a separate organization, the Godisa Tech-
number of issues, including Botswana’s increased partic- nologies Trust, to develop the promising pilot project
ipation in international treaties related to intellectual into a genuinely successful product. The recharger,
property, access to information on inventions related to now successfully marketed under the SolarAid brand,
BOTEC activities, and dealing with new technology that requires only 6–8 hours of sunlight to maintain a full
has been transferred to companies. BOTEC initiated the charge for a week.
Source: Quoted with slight adaptations from WIPO, http://www.wipo.int/ipadvantage/en/details.jsp?id=2623.
innovation that lies in the public sector, and in the creation ments, IPR policies should not be driven by individual tech-
of specific technology transfer offices (TTOs) in such insti- nologies. Similarly, the desire to encourage public-private
tutions (see module 5, TN 5 for examples of TTOs for indi- partnerships should not—by itself—drive IPR policies,
vidual institutions or a network of institutions). TTOs are although clearer understanding of IPRs at both the national
one example of policies promoting technology transfer, but and institutional level will help these partnerships flourish.
they are not the only such policy.
Understanding where to make strategic IPR-related
Disparity in the capacity to manage IP in public
investments, given the diverse pathways of potential impact
and private R&D
listed above, requires a closer look at the current context of
international IPRs and agricultural development. Invest- Despite increasing opportunities to engage the private sec-
ments in this space must take into account (1) the interna- tor, the public sector continues to be the primary driver in
tional obligations related to IPR and the rapidly expanding agricultural R&D for most developing countries. Globally,
use of IPRs in agriculture and (2) the continuing disparity agricultural investment in the public sector is double that
in capacity between the public sector and the private sector of the private sector, and one-third of the worldwide agri-
in the strategic use of IPRs. Although biotechnology is play- cultural R&D budget is spent in developing countries.5
ing an increasing role in agricultural development and is The lack of capacity for IPR management in public research
one area where the private sector has made large invest- organizations, and the disparity in IPR management
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 483
Box 6.18 Patenting a Chilean Invention to Protect Crops from Frost
In 1991, severe frost decimated Florencio Lazo Barra’s Industrial Property Department. The invention is also
fruit orchards. He lost all of his table grape production protected by patents in Argentina, Australia, China, and
and 80 percent of his plums. He also incurred high fuel the European Union.
costs for oil burners, which he used in the failed In 1998 the Lazo FCM technology was exported to
attempt to protect his orchards from frost. After years the United States by granting a manufacturing license
of experimentation, in 1996 a working prototype of the to Agtec Crop Sprayers (now “Superb Horticulture”),
Lazo Frost Control Machine (“Lazo FCM”) was tested who sold the product under the name “Lazo Frost
successfully. The Lazo FCM is a powerful centrifugal Dragon.” In the first three years, over 500 machines
fan with a heater, which is trailed across the field by a were sold in South America and the United States. In
tractor. The insertion of a layer of hot air in the cold air 2000, sales and distribution started in Europe through
mass surrounding the plants protects fruits and vegeta- Agrofrost N.V., a company based in Belgium selling and
bles from frost. distributing the machines throughout Europe under
Following successful tests with the prototype, Mr. the “Lazo Frostbuster” name. More recently, the tech-
Lazo applied for assistance from Innova Chile, a gov- nology was exported to New Zealand and Australia.
ernment agency tasked with promoting innovation. He Without the support of Innova Chile, which
obtained funding to convert his business idea into real- enabled the inventor to file for patent protection, little
ity and produce more machines. Orders from Chilean of this development would have taken place. Govern-
farmers soon followed, and in 1997, with assistance ment agencies charged with supporting innovation are
from an intellectual property expert, he began obtain- often criticized for supporting projects that do not
ing a patent abroad. The United States was the first come to fruition, so it is important to recognize cases
country to grant his invention a patent in 1999. In where they have been successful to balance this
Chile, patent No. 41776 was granted in 2002 by the impression.
Source: Quoted with slight adaptations from WIPO, http://www.wipo.int/ipadvantage/en/details.jsp?id=2448.
capacity between the public and private sectors, are there- species is considered to be of national importance, exemp-
fore important considerations for investments in agricul- tions from PVP have been incorporated in some national
tural development. legislation. Furthermore, as countries develop, needs for
protection may change, particularly as they move from
ACTION AND INVESTMENT NEEDED industries that exist by copying products produced else-
where to innovating to develop their own products. IPR
This section describes a set of investments related to IPR regimes continue to evolve even in developed economies
and agricultural development that can improve activity in and must be flexible enough to cope with changes in
this sector. Opportunities exist to improve policies at the national requirements.
institutional level and to develop institutional capacity, as
well as to increase knowledge sharing between the public
Promote the establishment of specific IP
and private sectors and, through these advances, increase
policies in public organizations
capacity for technology transfer.
It is not possible to provide a template for particular laws Establishing institutional policies on the ownership, protec-
or IPR regimes that will benefit all countries; IPR legislation tion, and dissemination of inventions will have a big impact
must be tailored to the national context. This issue is dis- on enabling technology transfer among public organiza-
cussed extensively in World Bank (2006), which recom- tions. Institutional IPR polices are critical to the impact of
mends a dialogue with conscious consideration of needs public research, can open an institution to new partners,
and priorities prior to enacting IPR legislation for plant and create incentives for changing the innovation climate.
breeding. For example, staple crops may be treated differ- One of the biggest improvements in technology transfer
ently from crops grown for export. Where a particular between public and private organizations in the United
Coffee from Colombia has retained a significant price all coffee roasters responded to this initiative, however,
premium over coffee from Brazil (the world’s largest and another IPR instrument was included in the strat-
producer of Arabica coffee) for many decades, largely egy: certification. “Colombian” was registered in relation
owing to a branding strategy that emphasizes the high to coffee as a certification mark in North America in the
quality of Colombia’s product. The National Federa- 1980s. The formal standards attached to this certification
tion of Coffee Growers of Colombia (FNC, Federación mark provide a guarantee that the actors in the market-
Nacional de Cafeteros de Colombia) was created in 1927 place are meeting minimum quality standards when
by Colombian farmers. Today, it represents over half a selling “Colombian” coffee, thereby protecting its hard-
million coffee growers, the majority of whom are earned reputation. Enforcing and protecting this certifi-
smallholders. The Juan Valdez® brand strategy is an cation turned out to be expensive but worthwhile, given
excellent example of continuing creativity in IPR man- the premium that Colombian coffee now demands in the
agement to promote agricultural development. market. The continuing expansion of the Juan Valdez®
Television commercials shown in North America in brand also included opening branded coffee shops,
the 1960s featured Juan Valdez® in the coffee fields with which have had varying degrees of success, as well as a
his faithful mule, painstakingly selecting and hand- partnership with Coca-Cola FoodService to offer a
picking the ripest beans. Consumers began to respond branded liquid coffee system.
to the message that Colombian beans are grown and “Café de Colombia” was registered as a geographical
harvested with great care, with little help from indicator in Colombia in 2004 and the European Union
machines, in ideal climatic conditions with plenty of in 2006. Unlike trademarks and certification marks,
rain, sun, and fertile volcanic soil. Demand grew. Many geographical indicators are intrinsically linked to
coffee roasters began marketing their products as attributes and quality standards related to origin.
Colombian coffee. A number launched high-end prod- They need to be recognized by governments, so delays
ucts consisting exclusively of Colombian coffee. can arise in establishing such a system, but the value of
The Juan Valdez® logo was licensed to coffee roast- these treaties in promoting quality brands is now
ers that used only high-quality Colombian coffee. Not recognized.
Source: Fridell 2007; March 2007a, 2007b.
States was legislation mandating IPR policies for institu- Well-trained IP practitioners are critical for a country to
tions that receive federal funds. By clarifying ownership of represent national interests and negotiate IPR provisions in
inventions and the responsibility of the institutions to pro- multiple international forums and for a country to develop
tect them, IPR policies became an integral part of research national IPR policies that promote development within
activities. Without necessarily mandating the use of IPRs complex international obligations. Likewise, managers,
through legislative means, in individual organizations the engineers, and scientists in public and private institutions
establishment of policies related to ownership and respon- must be able to understand IP and how to use it if countries
sibilities for protecting and disseminating inventions will are to play an increasingly competitive role in global agri-
have a big impact on enabling technology transfer. cultural development.
Create a global corps of trained IPR practitioners Support the creation of TTOs
The impact of new IPR legislation in the wake of TRIPS An effective way to achieve institutional understanding of
cannot lead to positive cultural shifts in the use of IPRs the value of IPRs may be through the creation of specific
without sufficient numbers of trained, in-country practi- TTOs with a mandate to identify and protect innovation use
tioners. The success of continuing investments in creating and to use IPRs to promote greater impact of the research
patent offices, improving judicial systems, and opening and innovations arising within the institution (for example,
TTOs depends on the quality of the professionals engaged. through licensing technology with other partners). Such
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 485
offices provide direct opportunities for the professionals Bank 2006). UPOV remains active in promoting harmo-
targeted in training activities to gain experience and also nization as traditional approaches to PVP are challenged by
demonstrate to researchers the value of IPRs in enabling advances in plant breeding and genetics (Janis and Smith
further development of their innovation (for additional 2007). Trademarks and related brand equity strategies are
information, see module 5, TN 5). considered by some scholars to be underutilized as a form of
creating value for developing countries’ agricultural prod-
ucts. A wide variety of opportunities exist for improving
Revisit the importance of nonpatent frameworks
nonpatent, IPR-related instruments at both the policy and
and opportunities for agricultural development
practitioner level; for examples, see boxes 6.19 and 6.20.
Trademarks, PVP, seed laws, and geographical indications
are a few of many IPR-related nonpatent instruments that
Encourage donors to require strategic IPR
may have an impact on agricultural development.6 In low-
management in development investments
income countries where patenting is limited and mecha-
nisms for enforcing patents are not well developed, these Private foundations, governments, aid agencies, and other
alternative forms of IPRs can be critical instruments in AISs. donors can influence the outcomes of investments across
The PVP system, for instance, granting plant breeders exclu- many fields by instituting internal grant-making require-
sive rights to market new varieties, is implemented in a ments that demand a higher level of strategic IPR manage-
number of industrialized and developing countries (World ment. As one example, requiring grantees to provide a plan
Box 6.20 Hagar Soya Co., Cambodia: Multiple Benefits from an Innovative Social Business Model
Hagar Soya Co. Limited (HSL) is a small enterprise in “So! Choco” have also been protected by registered
Phnom Penh created in 1998 by Hagar, a nongovern- trademarks.
mental charity based in Switzerland. In the mid-1990s, The company’s intellectual property strategy focuses
Hagar began an income-generation, training, and almost entirely on trademarks and aims at increasing
employment project for abused and abandoned the competitiveness of HSL’s products. The company
women in postconflict Cambodia. The project led to considers trademarks to be effective for preventing
the incorporation of HSL as one of Hagar’s small busi- unauthorized use of HSL’s marks and guarding against
nesses. HSL’s first commercially successful product was counterfeiting. The competitive edge also arises from
a soya milk drink sold under the brand name “So! registering a trademark to protect and increase its
Soya.” The product is nutritious, affordable, and tastes value, then publicizing it through a good marketing
good—all important qualities in helping local children and business strategy to enlarge the company’s market
increase their protein intake in a country with very share and stimulate the development of new products.
high malnutrition. Following the success of the soya The success of HSL’s trademark strategy is reflected in
milk drink, the company added more soya-based items the company’s achievements, first, in marketing its
to its product line. brand name through brand development of both the
Initially, the commercialization of Hagar’s soya company and its products, and second, in ensuring
milk was done in a rather informal way; women from lasting brand impact through quality products.
Hagar’s programs produced 300 liters of fresh soya The company benefited from Hagar’s initial ability
milk per day and sold it on the streets of Phnom Penh to identify the right path to incorporate income-gener-
from push carts. By 2003, HSL was ready for larger- ating activities within a development project, taking
scale production and the “So! Soya” trademark was into consideration the social needs of Cambodia. HSL
registered with the intellectual property Department is an example of an efficient social enterprise model,
of the Ministry of Commerce of Cambodia. which, according to the International Finance Corpo-
Subsequent HSL products such as “So! Soya kids,” “So! ration, can be replicated by nongovernmental organi-
Soya Gold,” “So! Yo,” “So! Yumme,” “So! Milk,” and zations worldwide.
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 487
of law in a country (Cavicchi and Kowalski 2007). As noted, Legislation has to be passed and enforced but is
extension services are another precondition; introducing not sufficient on its own
technology and innovation into research is pointless if the For low-income countries, the impact of IPR policies is
outcomes are not transferred to farmers and have no often dwarfed by other factors that have a far more direct
impact on poverty (World Bank 2006). Access to improved effect on innovation, including lagging investment in edu-
products is a major equity issue that must be addressed cation, institutional and infrastructural challenges, limited
within individual projects, but for products that have a access to financing, and the effects of a range of other busi-
direct commercial value and will be marketed through the ness development policies. In response to TRIPS, most
private sector, high royalties may have detrimental effects countries have passed IPR legislation, but few have gone on
on access. In this case, IPR legislation can include compul- to create a culture of innovation. To take this next step, the
sory licensing mechanisms to increase access and/or reduce value of protecting and using innovation must be under-
the market price. stood within a society. Government support for innovation
(box 6.18) that leads to the development of specific prod-
Environmental issues ucts is one way to demonstrate the value of IPRs to a wide
cross-section of society.
Given the wide-ranging impact of IPRs on rural develop-
Investments related to IPRs are focusing on legal systems
ment, it is difficult to provide specific policy recommenda-
of developing countries, based on the understanding that the
tions with respect to environmental issues. In most cases,
ultimate impact of any IPR depends on how it is enforced.
access to improved technologies is expected to improve
IPR legislation must be supported by well-functioning insti-
rural productivity. Productivity improvements may have
tutions (courts, patent offices, and the like) if IPRs are to
both positive and negative environmental implications, but
provide any incentive for innovation, but these critical
the major factor in environmental damage is often the lack
investments in institutional capacity will have more impact
of better alternatives. If farmers have better alternatives to
if they are designed to support the interactions of institutions
current practices, they may be able to take better care of
and staff with a rapidly changing IPR environment. Examples
their land, use other resources more efficiently, and con-
include investments in improved capacity to negotiate inter-
tribute to greater environmental sustainability.
national treaties, increased support for connections to inter-
national networks of professionals, and improved access to
Roles of public and private sectors research and expertise specifically targeted at IPR issues in
developing countries.
Since the major rationale for a society to develop IPRs is to
provide an incentive for individuals and organizations to
invest in innovation by increasing the likelihood of a Managing property rights in public institutions
return, IPRs will directly affect the private sector’s involve- is critical
ment in agricultural development. IPRs help connect coun- In agricultural development, public institutions are central
tries to the global innovation marketplace, which includes to the development and adoption of innovations that will
both private and public actors. At the same time, giving benefit the world’s poor. The role of the public sector in agri-
public institutions responsibility to protect their inventions cultural development has shifted considerably over recent
(as well as license them) increases technology transfer. For decades: grants are for shorter terms and focus more tightly
this reason, there is a major role for the public as well as the on projects; engagement with the private sector is increas-
private sector in developing an IPR system that is relevant ingly a necessity; and organizations operate in a complex
to national needs. web of IP and regulatory law frameworks. The public sector
has lagged considerably in understanding how IPR policies
and practices affect its role in development goals.
LESSONS LEARNED
In public organizations, capacity for IPR management is
As discussed, a wide range of actions and investments can often a low priority due to resource constraints, limitations
support the management of IPRs to promote agricultural on available expertise, and a lack of receptivity among
development. The following sections summarize lessons some managers to embrace IPRs as an important compo-
learned over the years as new strategies in IPR management nent of their development work. This lack of capacity can
were used to achieve specific socioeconomic goals. lead to mistakes and missed opportunities in licensing,
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 489
Box 6.21 Country and Donor Investments in Intellectual Property Training for Professionals
In-depth training. Since its founding in 1998, the at locally based organizations. The Intellectual Property
World Intellectual Property Organization (WIPO) Office of Singapore (IPOS, www.ipos.gov.sg) funds the
Academy (http://www.wipo.int/academy/en/) has costs of the program jointly with local organizations.
offered a wide range of courses on intellectual property India’s National Institute of Intellectual Property Man-
and intellectual property management. In addition to agement (NIIPM, www.ipindia.nic.in), in the Ministry
short workshops, the academy provides key support for of Commerce and Industry, provides training to R&D
degree and certificate programs in many developing managers, scientists, legal professionals, patent agents,
countries. For example, in 2010 Zimbabwe’s African researchers, doctors, engineers, and others.
University (in collaboration with WIPO and the Practical knowledge. As part of its bilateral develop-
African Intellectual Property Organization) graduated ment assistance, the Swedish International Develop-
the first class of students with a master’s degree in intel- ment Cooperation Agency (SIDA, www.sida.se) offers
lectual property. around 100 Advanced International Training Pro-
South–South training. The International Intellectual grammes every year targeted at practitioners in the
Property Training Institute (IIPTI, http://iipti.org/), field. These programs frequently cover various IPR
part of the Korean Intellectual Property Office, trains issues, including topics such as genetic resources and
professionals from Malaysia, Vietnam, and other devel- IPRs, industrial property in the global economy, and
oping countries within the region. India, South Africa, intellectual property for least developed countries. The
and Brazil play key roles as regional leaders with the Public Intellectual Property Resource for Agriculture
capacity to share IPR knowledge specific to the chal- (PIPRA, www.pipra.org) provides training and educa-
lenges faced by developing countries. tional materials (see the ipHandbook, www.iphand-
Targeting diverse professionals. Singapore’s Men- book.org) to developing-country scientists, intellectual
torship Funding Scheme brings in qualified patent property managers, and policy makers, with a focus on
agents from overseas to mentor and train professionals providing tools for practicing intellectual property.
Source: Authors.
When developing training programs, it is essential to clarity around confidentiality issues, and the flexibility for
consider that the trained professionals will need some form management to implement a strategic IPR management plan.
of employment in a setting where they can use the skills they EMBRAPA9 in Brazil has created such policies, which enabled
have learned. Significant resources have been wasted by it to make licensing deals with a number of multinational
training people who have no opportunities to apply their companies as well as local seed producers and assume a signif-
knowledge; these misdirected efforts further erode the icant role in soybean variety development (Fuck and Banacelli
impression that IPRs should be taken into account. TTOs 2009). Policy makers should continue to explore IP policy
provide a focus for training individuals and can also employ options through the lens of creating incentives for public and
them in a role that enables them to maintain their involve- private collaboration in agricultural development.
ment in this field.
Balance in-house capacity with prudent use of
Promote collaboration among public external services
and private partners
The IPR management capacity needed to meet the challenges
Practitioners working at the institutional level should seek to of coming decades does not exist in sufficient depth, even in
ensure that institutional IP policies support partnerships industrialized countries. In the private sector, due diligence,10
between public and private organizations. Such policies might the negotiation and drafting of agreements, and strategic IPR
include, for example, a clear set of principles to govern legal management are all regular practices (see IAP 2). Universities,
relationships with partners, processes to assess risk in partner- nonprofits, governments, international aid agencies, and
ships, transparency mechanisms to enable good governance, philanthropic foundations have excellent expertise in IPRs.
MODULE 6: THEMATIC NOTE 3: MANAGING INTELLECTUAL PROPERTY TO FOSTER AGRICULTURAL DEVELOPMENT 491
T H E M AT I C N O T E 4
492
INVESTMENT NEEDED ■ Conduct an assessment and gap analysis of national
development priorities, agricultural policies, existing
Investments in support of biosafety regulation may be
regulatory regimes, and national and regional scientific
needed for any or all stages in the typical progression of
and technical means necessary for a biosafety regulatory
events that lead to the development and implementation of
system to function.
a regulatory system. Key issues and policy options for these
■ Build a strong base of scientific knowledge in support of
stages were described in a conceptual framework for
the regulatory system and the development of core com-
biosafety regulation (McLean et al. 2002); World Bank
petencies in biotechnology product evaluation (box 6.22).
(2003) presented examples for individual countries. In sum-
■ Develop biosafety regulations to effect specific public
mary, the key stages are:
policy goals (as articulated in a national biosafety or even
biotechnology strategy).
■ Elaborate a national policy consistent with other objec- ■ Implement regulations through the operationalization
tives related to economic, social, and rural development, of the biosafety regulatory system.
natural resource management, and environmental pro- ■ Address cross-cutting issues that are common to each
tection and sustainability. stage in the development and implementation of a
Box 6.22 Building Human Resource Capacity for Biosafety Risk Assessment
The type of human resource capacity needed to imple- implementation of the National Biosafety Policy for
ment a biosafety regulatory system generally, and its GMOs and derived products, and for establishing tech-
risk assessment function specifically, is particular to nical safety standards and technical opinions regarding
each country. No standardized lists of human resource the authorization of activities that involve research and
requirements specific to individual disciplines exist. It commercial use of GMOs and derived products.”
can be instructive, however, to examine how other
CTNBio is comprised of 27 members:
countries have approached this issue.
In India, the Risk Assessment Unit of the proposed ■ Twelve specialists (PhDs recommended by scientific
Biotechnology Regulatory Authority of India will be organizations).
permanently staffed by a multidisciplinary team of sci- ■ Nine government officials appointed by the follow-
entists responsible for undertaking science-based risk ing agencies: Ministry of Science and Technology;
assessments of specific products. The Risk Assessment Ministry of Agriculture, Livestock, and Food Sup-
Unit will comprise thematic cells. The expertise for the ply; Ministry of Health; Ministry of the Environ-
two cells pertinent to the regulation of genetically engi- ment; Ministry of Development, Industry, and
neered crops is: Foreign Trade; Ministry of External Relations; Min-
istry of Agrarian Development; Ministry of Defense;
■ Core characterization: Molecular biologist, toxicol- and Special Office of the President for Aquaculture
ogist, microbiologist, biochemist, bioinformatics and Fisheries.
specialist, biostatistician. ■ Six members appointed as follows: one specialist in
■ Plant biotechnology: Plant physiologist, plant consumer rights by the Ministry of Justice; one spe-
pathologist, entomologist, agronomist, and plant cialist in human health by the Ministry of Health;
breeder. one specialist in environment by the Ministry of the
Environment; one specialist in biotechnology by the
In Brazil, the National Biosafety Technical Commis- Ministry of Agriculture, Livestock, and Food Sup-
sion (CTNBio, Comissão Técnica Nacional de Biosse- ply; one specialist in family agriculture by the Min-
gurança) provides technical support and advice to the istry of Agrarian Development; one specialist in
federal government “in the formulation, updating, and worker’s health by the Ministry of Labor.
Source: DBT 2008; Government of Brazil 2005.
MODULE 6: THEMATIC NOTE 4: BIOSAFETY REGULATORY SYSTEMS IN THE CONTEXT OF AGRICULTURAL INNOVATION 493
national biosafety system, especially the human, financial, unanticipated events, such as trade disruptions that can
and infrastructure resources to: develop and implement a occur as a result of accidental (or sometimes deliberate but
national biosafety system; support the infrastructure illegal) transboundary movement of GE commodities into a
required (such as buildings, equipment, and computers); jurisdiction where there is no approval for that GE crop or
facilitate communication and public participation; train derived food. For example, continued delays in the deploy-
scientific and regulatory personnel; and foster the research ment of pro-vitamin A rice (“Golden Rice”) have been
required to assure that risk assessments are sound. attributed exclusively to biosafety regulation by the product
developer (Potrykus 2010).
It is difficult to quantify the benefits of regulating prod- genetically engineered technology). According to this
ucts of agricultural biotechnology, but the economic study, farmers in developing countries paid 14 percent
impact from commercializing many genetically engi- of technology gains, whereas farmers in developed
neered crops has been studied. Brookes and Barfoot countries paid 34 percent of their gains. The higher
reported that in 2007, the total cost farmers paid for share of total technology gains accounted for by farm
genetically engineered soybean, maize, cotton, and income gains in developing countries relative to the
oilseed rape was equal to 24 percent of the technology farm income share in developed countries reflected fac-
gains (inclusive of farm income gains plus the cost of tors such as IPRs in developing countries and the
the technology payable to the seed supply chain, com- higher average level of farm income gain on a per-
prised of sellers of seed to farmers, seed multipliers, hectare basis derived by developing country farmers
plant breeders, distributors, and the providers of relative to developed country farmers.
The previous sections have described the often complex Workshops, symposia, and conferences can be valuable in
interface between agricultural innovation and biosafety reg- raising awareness or catalyzing discussions that may
ulations. Lessons related to developing and implementing inform the development of strategic programs, but they
biosafety regulations can be summarized briefly: cannot replace continued and meaningful engagement
with those who are tasked with the responsibility of actu-
■ Building capacity to develop and implement biosafety ally developing and implementing the regulatory frame-
regulatory systems requires a multiyear commitment. work (a task requiring considerable time, coordination,
■ Interministerial coordination is a prerequisite for suc- and expertise; see box 6.24 for an example from India).
cessful development of a biosafety regulatory system. Identifying in-country partners and investing in longer-
■ Investments in biosafety regulatory capacity can be strate- term capacity building for key individuals, including pol-
gically applied to benefit other regulatory programs. icy makers and opinion leaders, contributes to systemic
■ Biosafety regulatory systems should incorporate provi- versus transient gains. Experience has shown that the will-
sions for change. ingness of these individuals to understand the impact of,
■ Investments to develop biosafety regulatory systems and provide an enabling environment for, (cost)effective
should accompany investments in agricultural biotech- biosafety regulation is critical (see box 6.25 for an example
nology research. from Uganda).
Box 6.24 The Development of Genetically Engineered Food Safety Assessment Guidelines in India
The South Asia Biosafety Program (SABP) has assisted engineered plants. The conference offered an opportu-
the Governments of Bangladesh and India to further nity for stakeholders and technical experts from a num-
strengthen their institutional governance of biotechnol- ber of sectors to exchange experiences and views.
ogy since 2004. In India, the program started with stake- ICMR then hosted a multisectoral stakeholder con-
holder consultations and a gap analysis of the current sultation that achieved consensus on making the safety
biosafety regulatory system. The analysis identified the assessment of genetically engineered foods in India
need for comprehensive safety assessment guidelines for consistent with the internationally accepted Guideline
foods derived from genetically engineered plants and for the Conduct of Food Safety Assessment of Foods
for technical training in conducting food safety assess- Derived from Recombinant-DNA Plants adopted by
ments according to international standards. the Codex Alimentarius in 2003. ICMR formed a
The Indian Council of Medical Research (ICMR), drafting committee with representation from several
the technical arm of the Ministry of Health and Family ministries and departments and formulated draft
Welfare, in partnership with SABP, undertook a series of “Guidelines for the Safety Assessment of Foods Derived
activities over the next several years aimed at meeting from Genetically Engineered Plants.”
this need. It began with an international conference on The draft guidelines were circulated to technical
safety assessments for foods derived from genetically experts for input and reviewed by India’s Review
MODULE 6: THEMATIC NOTE 4: BIOSAFETY REGULATORY SYSTEMS IN THE CONTEXT OF AGRICULTURAL INNOVATION 495
Box 6.24 The Development of Genetically Engineered Food Safety Assessment Guidelines in India (continued)
Committee on Genetic Manipulation and Genetic concepts and principles of genetically engineered food
Engineering Approval Committee before being safety assessment and the methodology outlined in the
posted for public comment. Stakeholders’ comments new guidelines.
were addressed, and the guidelines were reviewed From inception to completion, the process of devel-
once again by both committees before their final oping new food safety guidelines and ensuring their
adoption in 2008. The end result is a guidance docu- implementation under existing authority in India took
ment that is consistent with internationally accepted four years. The long-term collaborative relationship
practices for assessing the safety of genetically engi- between ICMR and SABP contributed to the success of
neered food. this endeavor. SABP, particularly through strong in-
ICMR also collaborated with SABP to conduct tech- country partnerships, supported ICMR’s commitment
nical workshops providing in-depth, hands-on training to developing new guidelines by providing not just
about key requirements for the safety assessment of technical expertise on food safety assessment, but also
foods derived from genetically engineered plants. The institutional support to ICMR and Indian regulatory
training ensured that scientists and regulators, as poten- committees as they took the guidelines through review,
tial risk assessors and science advisors, understood the adoption, and implementation.
Box 6.25 Advancing Agricultural Biotechnology in Uganda: It Takes More Than Good Science
Uganda has spent almost fifteen years working to develop product commercialization will not advance in Uganda
a functional biosafety regulatory system that will promote until the national Biosafety Bill is promulgated. The
an enabling environment for research, development, and process of preparing the Biosafety Bill began in 2003.
deployment of genetically engineered crops. The country The Bill was finalized in 2007, approved by the Cabinet
was an early recipient of Global Environment Facility in 2008, and currently awaits submission to Parliament.
support to develop a National Biosafety Framework. The An analysis of the reasons for this protracted process
process started in 1998, three years before Uganda ratified found that a combination of market, policy-political,
the Cartagena Protocol on Biosafety and five years before and sociocultural factors are hindering progress, such as:
the Protocol came into force.
Since then, the Ugandan regulatory and science com- ■ Lack of sustained and coordinated political champi-
munities have benefitted from significant national and ons to move the bill forward.
international investments that have supported both ■ Lack of clarity among ministries regarding regula-
human and institutional resource development, such as tory roles and responsibilities.
enhanced technical capacity for product development, ■ Influence of antibiotechnology organizations.
management of confined field trials, and premarket risk ■ Complex and diverse institutional players.
assessment. The incremental gains achieved through ■ Poor product development strategies, leading to
these interventions have been confounded by continued delays in driving the operationalization of the
delays in operationalizing the regulatory system, partic- biosafety regulatory system.
ularly the passage of national biosafety legislation.
Uganda provides an all too common example of a The last bullet may now be a significant catalyst
country where innovation in agricultural biotechnology for movement on the Biosafety Bill. Using existing
is not necessarily limited by science but by political, legislation, Uganda has approved confined field
social, and market barriers. It is generally accepted that trials of genetically engineered cotton, banana, and
cassava. These and other pipeline products such engineered crops approaching commercialization
as drought-tolerant maize are all considered impor- may be the incentive needed to achieve multistake-
tant for Uganda’s agricultural productivity and sus- holder, and consequently political, support for the
tainability. Having farmer-supported, genetically Biosafety Bill.
MODULE 6: THEMATIC NOTE 4: BIOSAFETY REGULATORY SYSTEMS IN THE CONTEXT OF AGRICULTURAL INNOVATION 497
Box 6.26 Interministerial Coordination in the Biosafety Regulatory System of Bangladesh
In Bangladesh, the biosafety regulatory system is still in inputs from key ministries. Because of this action, no
a developmental stage, although institutional proce- further government debate is considered necessary for
dures cover R&D and the review and approval of foods approval.
derived from transgenic plants. The system is based on Guidelines for confined (experimental) field trials
a National Biosafety Framework document, developed of genetically engineered plants have also been pre-
with UNEP-GEF funds in 2004–06, which draws on a pared through the cooperative efforts of the Depart-
set of Biosafety Guidelines initially published by the ment of Environment (DoE in MoEF) and the
Ministry of Science and Technology in 1999. With the Bangladesh Agricultural Research Council, Ministry of
ratification of the Cartagena Protocol by Bangladesh in Agriculture (MoA). The guidelines include procedures
2004, responsibility shifted to the Ministry of Environ- for applications, standard operating procedures, and a
ment and Forests (MoEF), and the Biosafety Guidelines guide for inspections of confined field trials by officials
were redrafted to incorporate certain obligations of the appointed by MoEF. These guidelines have been
Cartagena Protocol. The revised guidelines were pub- approved by the NCB and published as an annex to the
lished in 2007. Biosafety Guidelines. In 2009 guidelines for genetically
Under the Biosafety Guidelines, the competent engineered food safety assessment were prepared that
authority is the interministerial National Committee are consistent with Codex (2003). NCB approved them
on Biosafety (NCB). The subordinate Biosafety Core in 2010, and they will be published as an appendix to
Committee operates as a scientific review body and so the Biosafety Guidelines.
far has been asked by the NCB to provide input into all Bangladesh’s biosafety regulatory system, while still
its decisions. To lend enforcement power to MoEF, a young, has made significant progress. Confined field
Biosafety Rule has been drafted that incorporates the trials are now being approved and applications for
Biosafety Guidelines and brings them under the formal commercial release are considered imminent. Intermin-
jurisdiction of the Environment Conservation Act. This isterial cooperation, particularly between DoE of MoEF
Biosafety Rule was prepared by a drafting committee and the Bangladesh Agricultural Research Council of
convened by MoEF that sought to proactively include MoA, has been integral to the success achieved to date.
Source: Author.
from Bangladesh). For the majority of countries, both single Plant and Biotechnology Risk Assessment Unit. This
developed and developing, internal coordination between action was taken to align biosafety and phytosanitary risk
competent authorities remains a significant issue that has assessments, leverage complementarities in the scientific
yet to be resolved. expertise required for both, and improve procedural consis-
tencies (P. Macdonald, personal communication).
Investments in biosafety regulatory capacity Investments should strengthen the scientific and knowl-
can be strategically applied to benefit other
edge base in ways that will provide benefits that extend
regulatory programs
beyond biosafety risk assessment and decision making. Many
The shared nature of many of the regulatory functions of developing countries have only a transient need for biosafety
plant health and quarantine programs and biosafety pro- risk assessment per se, because regulatory authorities may
grams (such as risk assessment, monitoring, and inspection) receive an application for a field trial or premarket approval
means that there is an opportunity to apply investments for only once a year or once every few years. Investments in edu-
biosafety regulatory capacity building to strengthen plant cation and research in the scientific disciplines that support
health and quarantine systems (and vice versa) so that the biosafety risk assessment and regulation, especially in the
objectives of both can be achieved without building redun- agricultural sciences, will have wide-reaching payoffs, how-
dant administrative and operational services. For example, ever. Efficiencies can be gained through the cross-utilization
the Government of Canada recently combined the risk of expertise within a country or even through pooling human
assessment functions for GE plants and plant health into a resources with neighboring countries.
MODULE 6: THEMATIC NOTE 4: BIOSAFETY REGULATORY SYSTEMS IN THE CONTEXT OF AGRICULTURAL INNOVATION 499
Box 6.28 The Approval of Bt Cotton in Burkina Faso
Burkina Faso is sub-Saharan Africa’s largest cotton pro- cotton varieties were approved by Burkina Faso’s
ducer. Cotton accounts for 30–50 percent of the coun- National Biosafety Agency (ANB, Agence Nationale de
try’s export earnings and is the main source of foreign Biosécurité) for commercial release. Comparisons in
exchange. In many rural areas where poverty is high, 2008 and 2009 showed that Bt cotton yielded 30 per-
the sale of cottonseed is the main or only source of cash cent higher than conventional varieties, and only two
revenue for Burkinabe farmers. Insect control is a key insecticide applications were necessary.
factor in cotton yield; insect infestations can damage Burkina Faso’s biosafety regulatory system has
up to 90 percent of the crop. Farmers typically apply developed relatively quickly and smoothly compared to
6–8 applications of insecticide per growing season, but those of other African countries such as Kenya,
yield losses of 30–40 percent persist. Uganda, and Nigeria. In 2005 Burkina Faso completed
An alternative insect management approach is to its National Biosafety Framework with resources from
plant insect-resistant, transgenic cotton varieties (Bt the United Nations Environment Programme and
cotton). Transgenic varieties from the United States Global Environment Facility. In 2006 the ANB was
were evaluated in confined field trials in Burkina Faso established under Law No. 005-2006 “Pertaining to the
from 2003 to 2005. These Bt varieties had significantly security system in regard to biotechnology in Burkina
reduced larval populations of cotton bollworm and Faso.”a However, it was the joint commitment of the
cotton leafroller, with a commensurate improvement in Ministers of Environment and Agriculture, who pub-
seed cotton yields and lint quality. After the insect resis- licly championed the economic benefits of Bt cotton to
tance trait was bred into local varieties, further field tri- the Bukinabe economy, that effectively catalyzed the
als were planted in 2006–07. Precommercial seed pro- rapid operationalization of the ANB, which was
duction began in 2008, the same year two transgenic achieved in only two years.
In June 2010, the Government of Vietnam issued modified organisms have no uncontrollable risks to
Decree No. 69/2010/ND-CP on Biosafety for Geneti- human health. 2. They have been permitted by at least
cally Modified Organisms, Genetic Specimens, and five (5) developed countries for use as food and no risk
Products of Genetically Modified Organisms. With has been seen in these countries.”
respect to the use of genetically engineered organisms This approach to regulatory approvals is both practi-
as food or animal feed, the Decree permits a written cal and scientifically defensible. It recognizes that the
certification of eligibility for use as food if the subject Vietnamese Ministry of Health considers the biosafety
of the application satisfies “either of the following regulatory systems of certain other countries to be con-
conditions: 1. The dossier of application for a written sistent with that of Vietnam and that the risk assessment
certification of their eligibility for use as food has been and approvals undertaken by those countries may be
appraised by the Genetically Modified Food Safety considered equivalent to and therefore sufficient to
Council, which concludes that such genetically obtain a certificate of eligibility by the Ministry of Health.
501
Box 6.30 International Framework for Setting Quality and Sanitary/Phytosanitary Standards
Sanitary and phytosanitary (SPS) measures are taken to The Agreement on Technical Barriers to Trade
protect: (1) human or animal health from risk arising (TBT) deals with product standards. It aims to prevent
from additives, contaminants, toxins, or disease organ- national or regional technical requirements or stan-
isms in food, drink, and feedstuffs; (2) human life from dards in general from being used as unjustified barriers
risks associated with diseases carried by plants or animals; to trade. The agreement covers standards relating to all
(3) animal or plant life from pests, diseases, and disease- types of products, including industrial and agricultural
causing organisms; and (4) a country from other damage products. Food standards related to SPS measures are
caused by the entry, establishment, or spread of pests. not covered. Codex decisions recognized by the TBT
The need to fight animal diseases (zoonoses) at the Agreement include those on food labeling, decisions on
global level led to the creation of the Office Interna- quality, nutritional requirements, and analytical and
tional des Epizooties (OIE) through an international sample methods.
agreement in 1924. An international agreement on The International Organization of Standardiza-
plant health was reached in 1952 through the Interna- tion (ISO) also enacts international standards; those
tional Plant Protection Convention (IPPC). The applicable to agricultural industries and enterprises
Codex Alimentarius Commission (CAC), focusing on include standards for quality, safety, and environmen-
food standards in relation to safety risks, was created in tal management (series ISO 9000, ISO 22000, and ISO
the early 1960s. These international organizations have 14000, respectively). The agricultural sector also bene-
become even more relevant since the mid-1990s, when fits from standards dealing with conformity assess-
they were recognized as the international reference for ment that apply across sectors (ISO 17000 series).
settling disputes and for international trade under the Other international organizations setting global stan-
World Trade Organization (WTO) Agreement for San- dards relevant to agriculture include the International
itary and Phytosanitary Measures.a Seed Testing Association (ISTA) and the Interna-
Under the agreement, countries are encouraged to tional Federation of Organic Agriculture Movements
present their concerns to the WTO regarding measures (IFOAM).
adopted by trade partner countries that do not follow A plethora of private initiatives also seek to have a
the stated principles. According to WTO, of 312 SPS- global reach. GLOBALG.A.P. enacts standards on
related trade concerns raised by countries to the SPS good agriculture practice, and the Global Food Safety
committee over 1995–2010, 28 percent related to food Initiative (GFSI) focuses on Hazard Analysis and
safety, 25 percent to plant health, and 41 percent related Critical Control Point (HACCP)-based standards
to animal health and zoonoses. Animal health concerns with application in agrifood industries. Still other
mainly included foot-and-mouth disease (24 percent of private initiatives apply to particular agricultural
concerns), transmissible spongiform encephalopathy subsectors, for example export crops such as coffee,
(35 percent of concerns), and avian influenza. cocoa and tea.
agrifood products. Demands go beyond a product’s charac- has induced innovation at many levels in the agricultural
teristics (product standards) to include specifications on the sector (box 6.31).
conditions under which products are produced and pack-
aged (process standards, which now often include sustain-
ACTIONS AND INVESTMENTS NEEDED
ability considerations). Table 6.2 lists examples of the broad
range of standards and technical regulations applied to food The capacity of standards and technical regulations to achieve
and agricultural products. The demand for such standards their intended outcomes and also catalyze agricultural
Innovation along agricultural supply chains. The seri- ozone-depleting substance under the Montreal Proto-
ous effects of mycotoxins on human and animal health col. Since 2010 the European Union has banned its use
following consumption of specific contaminated prod- for most purposes, including quarantine and preship-
ucts (such as groundnuts and maize) have led many ment fumigations, boosting the search for alternative
countries to enact technical regulations establishing control mechanisms.
maximum permitted levels of mycotoxins. In sub- Innovation in supply chains. Record-keeping and
Saharan Africa, where the problem is especially serious, traceability requirements have been incorporated into
numerous collaborative research initiatives have been public and private standards, leading to innovations in
undertaken to identify cost-effective management supply chains that include simple tracking methods
options to reduce the threat to trade and human health. (pen and paper) as well as more sophisticated systems
Research has emphasized on-farm technologies such as based on barcodes, radio-frequency identification,
biological control, resistant/tolerant varieties, agro- wireless sensor networks, and mobile devices and
nomic practices, cost-effective diagnostic tools, and applications.
practices and technologies for drying, storing, and pro- Innovation in standards themselves. The past two
cessing food and feed. decades have seen the emergence of tremendous inno-
Innovation in alternative control methods. Bans on vations in the way standards are developed and imple-
hazardous pesticides and other chemicals for treating mented. For example, the move toward system
pests and diseases are a major incentive for innova- approaches to food safety regulation has been influ-
tions. Methyl bromide, used especially in quarantine enced by two major developments: (1) the introduction
operations for controlling pests affecting plants and of scientific risk analysis as the basis of establishing
plant-derived materials, has been recognized as an food standards and regulatory measures and (2) the
adoption of food safety management systems, such as emphasizes the private sector’s specific obligations in
the Hazard Analysis and Critical Control Point supplying agrifood products to consumers.
(HACCP) system, and the subsequent move from test- Innovation by private actors. Private “codes of prac-
ing end-products to preventive approaches. At the pri- tice” and standards related to sustainability (food safety,
mary production level, HACCP-based approaches are environmental and social criteria) are also proliferating,
being implemented, complementing a set of preventive especially in horticultural and export crops (coffee, tea,
measures packaged under good agriculture practices cocoa, bananas), forestry, aquaculture, and livestock.
(GAP) programs. Tremendous innovations have been put in place by the
Innovation in certification. The preponderance of private sector and NGOs, not only for the development of
system approaches and process standards has fostered voluntary standards—with a set of prescribed criteria for
the emergence of systems for assessing conformity ensuring compliance—but also in terms of compliance-
based on third-party certification. This development related infrastructure (such as the innovative auditing
opens opportunities for coregulatory approaches by the and certification systems described earlier). Innovation
private and public sector (a combination of legislation has extended to methods for ensuring that certification
and self-regulation by private operators). The move- schemes include farmers of differing capacities. In this
ment toward self-regulation in the private sector regard, the emergence of group certification has been a
has been pushed by the incorporation of concepts tremendous innovation, allowing engagement with
such as “due diligence” in regulations; due diligence organized groups of small-scale producers.
Source: Authors.
Note: In the United States, for example, the 2011 Food Safety Modernization Act (FSMA) expands the powers of the Food and
Drug Administration; among other provisions, it empowers the FDA to create a system for recognizing bodies that accredit
third-party auditors to certify eligible foreign facilities.
innovation is influenced by policy and regulatory frame- SPS and quality issues at the policy level appears to be
works and by the mechanisms enabling stakeholders to inter- increasing; for example, many governments have enacted
act and collaborate to prioritize needs and investments, share specific food safety or organic production policies.
costs, and perform specific functions related to SPS and qual- The alignment and harmonization of policy and legisla-
ity. Action and investments are especially important for (1) tive frameworks is often the first stage in creating an effi-
aligning policy and regulatory frameworks to enable stan- cient system for SPS and quality standards. Harmonization
dards to contribute to specific policy goals (such as institu- addresses the complex, inefficient regulatory frameworks
tional reform) and (2) enhancing capacities to perform the emerging from overlapping institutional roles, identifies
wide range of roles and functions related to standards. outdated regulations and standards, and promotes inter-
agency coordination and communication, among other
institutional reforms.
The alignment of policy and regulatory frameworks
For example, several countries have merged multiple
Policy frameworks vary in accordance with specific national laws related to SPS in new food laws and have updated reg-
or subnational needs and circumstances. To understand how ulations to reflect new institutional arrangements and com-
technical regulations and standards can contribute to policy petencies. Another trend is to promote integrated policy
goals, it is essential to clearly define the overarching goals of and regulatory frameworks for managing certain risks
SPS and quality regulations. The legislative and regulatory together. FAO has developed an integrated “biosecurity
process is one of an array of tools that government can use approach” for managing biological risks to animal, plant,
to achieve policy goals, but often it is only in the course of and human health and life (including associated environ-
analyzing and discussing concrete legislative actions that mental risk), because they all involve systems and procedures
outstanding policy questions are identified and resolved. In for risk assessment and management, food contamination
recent years, government awareness of the importance of notification, and exchanging information.3
Box 6.32 Institutional Arrangements for Improving Systems for SPS and Quality Standards
Develop mechanisms for interagency and stakeholder Safety Agency—which defines food safety policy and
coordination. Examples include memorandums of coordinates the work of institutions with food safety roles.
understanding among public agencies to clarify roles Merge SPS functions into a single independent
and responsibilities in specifies areas (such as inspec- agency. An example of this type of arrangement in
tions), the establishment of task forces/working groups developing countries is the Belize Agricultural Health
to respond to disease outbreaks or emergencies, and Authority (BAHA), established in the early 2000s.
identifying liaison staff in each agency to facilitate com- BAHA integrates food safety, quarantine, and plant and
munication and exchange of information. In many animal health functions into a single entity.
developing countries, task forces have emerged under Consider costs and capacity. Implementation of any
the leadership of public or private entities, bringing of these approaches will involve considerations of cost
public and private actors together to discuss actions to and capacity. In establishing a new agency, consider the
deal with challenges emerging from SPS and quality- leadership, facilitation, time, and resources required.
related standards. All options need to be assessed in the context of exist-
Coordinate functions under a lead agency. An exam- ing capacities in the public and private sectors, the
ple of this approach is ACHIPIA—the Chilean Food investments required, and the expected benefits.
Source: Authors.
Note: ACHIPIA = Agencia Chilena para la Calidad e Inocuidad Alimentaria.
Table 6.3 Organizational Functions Related to Sanitary and Phytosanitary (SPS) and Quality Standards
Functions related to SPS and quality standards
Registering and controlling feed, agrochemicals, veterinary drugs Developing/maintaining pest- or disease-free areas
Conducting basic research, diagnosis, and analysis Testing products for residues and contaminants
Accrediting laboratories, veterinarians, and other third-party Establishing/maintaining product traceability
entities
Developing/applying quarantine procedures Reporting possible hazards to trading partners
Conducting epidemiological surveillance Providing metrology services
Inspecting/licensing food establishments Notifying the World Trade Organization and trading partners of new
SPS measures
Inspecting and approving consignments for export Participating in international standard-setting
Box 6.33 Actions and Investments for Uganda’s Fish Export Industry to Comply with Standards
and Technical Regulations
Hazards of a poorly performing regulatory system. fishery policy; (3) improving monitoring and inspec-
Uganda’s fish export industry burgeoned in the 1990s, tion systems (drafting inspection manuals and standard
largely because private investments in fish-processing operating procedures and training inspectors); (4) initi-
facilities led to strong export performance in European ating regional efforts to harmonize handling procedures
markets. Public investments in food safety policy and in the countries bordering Lake Victoria; (5) upgrading
regulatory frameworks and enforcement capabilities a (small) number of landing sites and plans for upgrad-
did not keep pace with private investments in the ing a substantial number of others; (6) upgrading pro-
industry, however. At the end of the 1990s, the weak cessing plants’ procedures and layouts; (7) opening up
regulatory system exposed Uganda to three safety- the U.S. market, which requires HACCP compliance;
related bans on its fish exports to Europe. Scientific (8) installing two local laboratories and improving the
proof that the fish were unsafe never materialized, yet quality of laboratory services provided to the industry;
the poor performance of Uganda’s public regulatory (9) increasing the number of processing plants and
and monitoring system was used to justify the ban. improving export performance; and (10) forming an
Investing and innovating to reposition the industry. Association of Quality Assurance Managers to address
Public and private actors made a series of innovations problems and concerns among industry players.
and investments to lift the ban and regain the markets. The fixed investment in upgrading factories, manage-
Innovation and investment were favored by high ment systems, and other infrastructure between 1997 and
demand in Europe, technical and financial assistance 2001 was equivalent to about 6 to percent of the FOB value
from development partners, the government’s open and of exports over that period. The innovations were beyond
decisive leadership; and access to finance for private those required to achieve compliance, such as the adop-
companies. Specific actions included: (1) streamlining tion of ISO 9000 and even ISO 14000 quality systems. In
regulations and strengthening the government author- general, the process enhanced cooperation and relations
ity that would implement them; (2) developing a new between the regulatory agency and the industry.
Continuously innovating to meet new challenges have been adopted to manage market risks. The vol-
and opportunities. Despite some lingering food ume of fish exports to the European Union has not
safety issues, the larger challenge for the industry is to returned to previous levels, partly because of the
deal with the depleted waters and fisheries of Lake depletion of fish stocks and competition from other
Victoria and more general environmental degrada- types of white fish from other countries. For the
tion, which have spurred negative campaigns against Ugandan fish industry, the capacity to learn from its
the industry in Europe. Regulatory controls, comple- experience, innovate in response to evolving market
mented by self-regulation and voluntary efforts to demands, and sustain its resource base will be critical
gain environmental and sustainable certification, to future viability.
Sources: Ponte 2005; Ponte, Kadigi, and Mitullah 2010; Jaffee et al. 2006.
The use of economic analysis to drive policy decisions information concerning products and processes. They
related to SPS is often emphasized, but the complexity of provide incentives to local firms to improve the quality and
current methods is driving efforts to find more flexible and reliability of their products. They can also be used as a risk
practical methodologies. An innovative framework based management instrument, as a product differentiation tool,
on multi-criteria decision analysis is being validated by the or as a cobranding strategy.
Standards Trade and Development Facility.4 Several agricultural export industries in developing
countries have used compliance with standards to gain an
important competitive advantage. Examples include horti-
POTENTIAL BENEFITS
cultural industries in Peru (Diaz and O’Brian 2003; Diaz
In the agriculture and agrifood sectors, standards fulfill a Rios 2007) and Kenya (Jaffee 2003); the groundnut industry
broad range of objectives. A general objective of standardiza- in Argentina and Nicaragua (Diaz Rios and Jaffee 2008);
tion is to facilitate flows of information between consumers and the Brazil nut industry in Bolivia (Coslovsky 2006). In
and producers (particularly information on unobservable all cases, success required the incorporation of innovations
characteristics, such as the use of GM ingredients) to facilitate in production and processing but, perhaps most important,
trade and spur economic activity. For government, standards in collective and organizational behavior. Examples of col-
allow authorities to achieve several objectives, such as the pro- lective and organizational innovation include the formation
tection of animal, plant, and human life and health; the pro- of the Fondation Origine Sénégal—Fruits et Legumes; the
tection of the environment; and the incorporation of social collective self-regulation of Bolivia’s Brazil nut industry; the
and sustainability considerations into agricultural produc- collaborative arrangements and interactions between Peru’s
tion. Through standards, information imbalances and exter- Commission for Export Promotion (PROMPEX, Comisión
nalities can be addressed and fair competition promoted. Para la Promoción de Exportaciones) and several subsec-
Compliance with standards is crucial for countries to toral associations.
participate in international trade, because it ensures the Clearly the impacts and distributional effects of non-
compatibility of components and traceability of products compliance with SPS standards can be devastating for a
and raw materials from different places. Approaches to har- company or an entire industry.5 The World Bank (2005)
monizing standards between countries and/or industries presents several examples of associated distributional effects
can reduce transaction costs by reducing duplicative func- across agricultural export industries resulting from the
tions of conformity assessment, including testing and certi- imposition of bans or export restrictions following non-
fication (Jaffee 2005). compliance with these critical standards. Compliance with
From the perspective of the private sector, standards are standards and the prevention of foodborne illnesses and
a means of transferring technology and diffusing technical animal/plant diseases also reinforce a country’s reputation
India’s fish and fishery products: An export market Peruvian asparagus exports: Success through stan-
lost and regained. In 1997, the European Union dards. In 1997, when Spanish health authorities
banned all fish and fishery products from India due to asserted that consumption of canned Peruvian aspara-
noncompliance with hygienic standards. The Indian gus caused two cases of botulism poisoning, the result-
government improved hygiene by requiring measures ing public scare in European markets created large
such as integrating preprocessing operations with pro- market losses for Peruvian asparagus exporters. Seeing
cessing facilities and imposing strict limits on approved that even one careless exporter could disrupt the mar-
output according to plants’ capacities for water, ice kets, the government and industry decided to take
making, and effluent treatment. The government action to bring Peruvian agricultural standards in line
implemented programs to support improved hygienic with international norms. In 1998, the Peruvian Com-
controls in fish processing, including subsidy programs mission for Export Promotion convinced the asparagus
for upgrading processing facilities and training man- industry to implement the Codex code of practice on
agers and workers throughout the supply chain. Fish food hygiene. Government specialists worked with the
exporters acted collectively to establish infrastructure companies to ensure proper implementation. In 2001,
that would link preprocessing units to common water, national fresh asparagus norms were published. They
ice, and effluent facilities. The new facilities include provided a quality and performance baseline for the
modern laboratories that perform all microbial and industry that allowed many firms and farms to gener-
chemical tests required by importers. These measures ate the necessary skills and experience to gain certifica-
led the European Union to lift the ban on imports. tion under the stringent international standards.
Source: World Bank 2005.
Table 6.4 Strategic Choices and Responses with Respect to SPS and Quality Standards
Strategy
Nature of the response Exit Voice Compliance
Reactive Wait for standards and Complain when standards Wait for standards and
give up are applied then comply
Proactive Anticipate standards and Participate in standard Participate in standard
leave particular markets creation or negotiate creation or negotiate
before standards are before standards are
applied applied
Viability Exit Voice Compliance
Size of firm or industry ++ +
Share of target market – ++ +
Reputation – ++ +
Suitability of legal/regulatory framework ++ +
Leadership/coordination within value chain + ++
Private sector management/technical capacity + + ++
Public sector administrative/technical capacities + ++ ++
Clarity of institutional responsibilities + +
Geographical/agro-climatic conditions –/+ –/+
Prevailing challenges ++ – –/+
Nature of the measure –/+ –/+
SYNOPSIS OF PROJECT DATA In 2006, the government initiated the World Bank-
funded Agricultural Development Support Project (ADSP).
Country: Zambia
Through support to Zambia’s Ministry of Agriculture and
Project: Agricultural Development Support
Co-operatives (MACO), the ADSP fosters the commercial-
Project (ADSP)
ization of smallholder agriculture by developing a network
Cost: US$37.2 million (total project cost
of competitive value chains in selected high-quality, high-
US$39.6 million)
value commodities (such as cotton, horticultural crops,
Component cost: Support to Farmers and Agribusiness
honey, and dairy). Interventions provide better technology
Enterprises (US$33.2 million); Institu-
(improved seed, microirrigation), strengthen institutions
tional Development (US$3.9 million);
(public-private partnerships, outgrower schemes), and
Project Management and Coordination
develop well-maintained rural roads in high-potential agri-
(US$2.6 million)
cultural areas. The objective is to ensure that the selected
Dates: FY 2006–14
value chains operate efficiently to increase value addition,
Contact: Indira Ekanayake, World Bank, Zambia
improve smallholders’ access to markets, and improve the
competitiveness of their agricultural commodities.
CONTEXT
512
and development, product promotion, and acquisition of mented by the Road Development Authority (RDA) and the
technical and market information. National Road Fund Agency (NRFA). The institutional
The Rural Roads Improvement Facility (RRIF) provides development component is managed by the respective
resources to rehabilitate and maintain rural and district roads MACO departments.
to link selected high-potential agricultural areas to markets as
a means of improving incomes and livelihoods. Target roads
INNOVATIVE ELEMENT
are in five districts (Choma, Chongwe, Katete, Chipata, and
Lundazi) in two provinces (Southern and Eastern). RRIF The innovative feature of ADSP’s design is a demand-
investment is expected to provide the essential rural road net- driven, value chain approach that facilitates smallholders’
work for improved market access and associated product participation in key value chains. Innovative features of
delivery efficiencies and benefits. The road facility supports ADSP’s implementation include the demand-led innova-
the ADSP’s general aims, because value chain development is tion fund, matching investments by agribusiness to finance
superimposed within the rural road grid. To date, 642 kilo- a sustainable rural road network (crucial for innovation by
meters of critical feeder roads have been rehabilitated (57 per- agribusiness), and the piloting of an improved market
cent achievement of the target of 1,129 kilometers). information system. Rural road improvements are procured
The Supply Chain Credit Facility (SCCF) was originally through Output and Performance-based Road Contracting
designed to provide credit, on a demand-driven basis, for (OPRC). A spatial approach is used to ensure that techno-
investments to improve the supply chains of existing and logical interventions in the selected value chains are com-
emerging outgrower schemes and enable agroenterprises, patible with the improved rural road grid.
traders, or nucleus and commercial farmers working with Under MIIF, matching grants support innovative interven-
smallholders to finance capital investments, seasonal inputs, tions by agribusiness that add value to agricultural products,
and export activities. Following implementation delays, improve agricultural productivity, and improve smallholders’
SCCF was modified to improve the productivity of outgrower links to markets. The MIIF Innovation Categories in agricul-
schemes, scale them up, establish new contract farming enter- tural value chains include new products, new technologies or
prises, and upgrade processing and marketing capacity. processes, new markets, new strategic partners or organiza-
Under the project’s institutional development component, tional arrangements, and new geographical locations.
ADSP builds capacity in selected departments of MACO to The innovative element expected of SCCF is that it
provide the core public services for enhancing smallholders’ would enable entrepreneurs to make the capital investments
productivity, quality of produce, and access to markets. For that are vital to stronger and more competitive value chains
example, the project has enabled the Cotton Development with or without scaling up while reducing risk absorption.
Trust (a public-private trust) to provide seed and technical
assistance to smallholders and increase its production of
BENEFITS, IMPACT, AND EXPERIENCE
foundation seed for cotton through improved irrigation
facilities. The project has also helped to build and equip a Value chains strengthened through the project include
biotechnology laboratory at the Seed Control and Certifica- dairy, cotton, horticultural crops, paprika, honey, biodiesel,
tion Institute (SCCI) and improve the SPS services of the and tobacco, among others. Some of the key benefits and
Zambia Agricultural Research Institute. outcomes associated with the project are described next.
The Project has multi-institutional and innovative insti-
tutional arrangements for implementation. For example,
An innovative matching grant scheme is under way
the National Coordination Office is based in MACO. MIIF
is administered by Africare, an international NGO, and In its three-plus years of implementation, MIIF has
coordinated and managed by an independent, outsourced funded 17 subprojects (for which the total budget exceeds
secretariat. Independent technical reviewers assess the tech- US$2.6 million) involving more than 28,800 smallholder
nical and financial feasibility of proposed subprojects. A beneficiaries. Six additional subprojects are under review,
multistakeholder subcommittee of the National Project and 20 or more proposals are under development. MIIF
Steering Committee (with representatives of the Bankers subprojects have generated 22 technologies and innova-
Association of Zambia, the agribusiness sector, MACO, and tions for a range of value chains, including dairy, ground-
a member of the secretariat) is responsible for final funding nuts, honey, biofuels, and fisheries. The grant scheme has
decisions. The project’s rural road component is imple- leveraged an additional 85.6 percent cofinancing,
MODULE 6: INNOVATIVE ACTIVITY PROFILE 1: IMPROVING ZAMBIAN SMALLHOLDERS’ AGRIBUSINESS SKILLS 513
illustrating the considerable buy-in and commitment by project had rehabilitated 583 rural district and feeder roads
agribusinesses. It is too early to project the outcome of the in the national road network. It is actively encouraging the
subproject grants, but initial assessments by beneficiaries use of MIIF grants in contracting for road rehabilitation
have been very positive. and maintenance to create synergies between improved
To date, the grant scheme has funded high-quality pro- crop production and marketing in the value chains. The
posals that are demand led and innovative. One lesson from socioeconomic targets of the OPRCs in selected catchment
the experience with MIIF, however, is that it is vital to main- areas (3,136 households were surveyed as a baseline) are
tain the number of high-quality subprojects that enter the mainly related to process impacts (income-generating
funding pipeline. Awareness of the facility is spread through opportunities from road rehabilitation), access impacts
continuous publicity; a variety of field days, symposia, and (associated with providing the road infrastructure), and
workshops; and word of mouth in the business community. mobility impacts (on transport services or growth in traffic
Another lesson is that a favorable external business environ- volumes), but they are still too early to quantify.
ment (especially exchange rates for commodity exports and
inputs for production and value addition) is essential for
strong participation in an innovation grant scheme such as An agricultural market information system piloted
MIIF that attempts to increase competitiveness. in an integrated project activity zone
MIIF’s implementation has faced several challenges. Ini- As noted, the project used a spatial approach to target the
tially agribusinesses were reluctant to participate because of technology interventions for the selected value chains
their limited awareness of and low interest in the need to inno- within the improved rural road grid in Southern Province,
vate for greater competitiveness. The high transaction costs where a market information system has also been success-
(time, resources) and lack of experience in developing concept fully piloted in three districts. Given the popularity of radio
notes, proposals, follow-up documentation, and cofinancing broadcasts of commodity market prices, this program is
commitments also presented a challenge for some partici- being scaled up to include all districts in Southern Province
pants. The private sector was wary of engaging with what it and will also be introduced to Eastern Province, where the
perceived to be NGO- and government-“driven” activities. OPRC rural road work is taking place.
Similar issues of limited trust and experience in working with
the private sector impeded collaborative arrangements
Short-, medium-, and long-term loans to support
between private and nonprivate actors. Another challenge that
investment
must not be underestimated is that the effort involved in
working with smallholders in outgrower schemes can limit the Loans provided through the SCCF are an important com-
private sector’s interest in submitting proposals. plement to the matching grants provided through MIIF, and
Although it is too early to point to specific benefits aris- access to short-, medium-, and long-term agricultural
ing from the project’s various kinds of support to specific finance remains critical to the project’s success. This aspect of
value chains, the adoption of more productive and favor- the project has been implemented more slowly than
able technologies has increased. A baseline study in two expected, however. Responsibility for implementation has
provinces where rural road work is taking place was com- been transferred to the Development Bank of Zambia, where
pleted, and an impact study is being undertaken in the institutional capacity strengthening has been initiated.
same areas.
MODULE 6: INNOVATIVE ACTIVITY PROFILE 1: IMPROVING ZAMBIAN SMALLHOLDERS’ AGRIBUSINESS SKILLS 515
I N N O V AT I V E A C T I V I T Y P R O F I L E 2
SYNOPSIS livestock diseases (East Coast fever, Rift Valley fever, Porcine
he Global Alliance for Livestock Veterinary Medi-
T
cysticercosis, and Newcastle disease) cause estimated annual
cines (GALVmed) is a nonprofit organization that economic losses upwards of US$350 million. Losses on this
makes livestock vaccines, diagnostics, and medi- scale affect the livelihoods of hundreds of millions of poor
cines accessible and affordable to the very poor. GALVmed households in the developing world.
coordinates research, development, and deployment GALVmed currently works on nine disease-control tech-
(RD&D) among multiple partners, from identifying candi- nologies for those four livestock diseases. Many diseases
date technologies to manufacturing sustainable supplies of afflicting livestock in developing countries are preventable
market-ready products. GALVmed uses a wide range of and well understood from a research perspective. Until
resources to ensure that IP supports innovation for the recently, however, the developing world has lacked the
poor, such as due diligence for accessing upstream tech- resources for moving the science out of the lab and into the
nologies, the implementation of IP strategies that work field to prevent and contain livestock diseases. One reason
toward development goals, the use of IPRs as incentives to for this impasse is that disease-preventing and disease-
engage partners, and the negotiation of contracts that sup- controlling technologies often emerge from R&D in
port the translation of research into products accessible to advanced laboratories and are subject to one or more forms
the poor. GALVmed’s IP management system benefits its of IP protection.
pro-poor mission by addressing broader issues that prevent For GALVmed to achieve its mission, the organization
innovations from becoming sustainable, market-ready must constantly exercise (and review) its IP policies and IP
products. Experience with public-private partnerships has management strategies. Through effective IP policies and
taught GALVmed to leverage its interests while providing its management strategies, GALVmed can identify and circum-
partners with the opportunity to achieve their own internal vent IP risks early in the commercialization pathway, there-
mission. fore avoiding potentially serious and costly downstream
impediments to GALVmed projects.
GALVmed is unusual in that it operates across the entire
CONTEXT
commercialization pathway to make technological solutions
The Global Alliance for Livestock Veterinary Medicines accessible to the poor. GALVmed does not have in-house
(GALVmed, www.galvmed.org) is a nonprofit organization capacity for the research, development, and deployment
with a mission to make livestock vaccines, diagnostics, and (RD&D) of products. Instead, its role is to facilitate the
medicines accessible and affordable to the millions for entire RD&D process, from identifying candidate technolo-
whom livestock is a lifeline. The Bill and Melinda Gates gies to manufacturing sustainable supplies of market-ready
Foundation, the United Kingdom Department for Interna- products. Managing RD&D activities among multiple part-
tional Development, and the European Commission are ners and under pro-poor obligations requires the organiza-
major sponsors of GALVmed’s work. tion to consider the use of IP strategically to ensure that
The impact of livestock in addressing poverty continues to upstream technologies do ultimately result in downstream
be underappreciated, particularly livestock’s role as living products accessible to those who need them most.
assets for the very poor. Data on the impact of livestock dis- By addressing a wide range of IP strategy issues,
eases are limited, but four of the many major and unaddressed GALVmed has gained experience that has value for many
516
Box 6.35 Tailoring Intellectual Property Strategies for Public and Private Partners
in Technology Deployment
The vaccine that GALVmed is currently deploying for to determine: (1) whether in-licensing was required
East Coast fever has a commercial market, primarily and which partners might need to be engaged in the
among the Masai in East Africa, and potential for sus- process due to IP ownership and (2) what incentives
tainable private sector production and distribution. could be derived, either with IP or other levers, to
Protection against East Coast fever adds significant ensure that partners also had incentives to comply with
value to Masai calves, and the Masai are willing to pay GALVmed’s pro-poor obligations.
for the vaccine within a certain price range. With the While commercialization of the East Coast fever
help of the Public Intellectual Property Resource for vaccine involved private companies as partners in man-
Agriculture (PIPRA, www.pipra.org), GALVmed first ufacturing and distribution, another vaccine in
approached the IP strategy for the vaccine by character- GALVmed’s portfolio, the Porcine cysticercosis vaccine,
izing the opportunities and risks. The vaccine was involves virtually all public partners. In this case,
nearly ready for the market and would not require sub- GALVmed recognized that the lack of a private market
stantial further development. PIPRA reviewed the IP in for the Porcine cysticercosis vaccine (government pro-
the technology. It determined that the technology and curement was anticipated) meant that incentives to
related know-how, although enormous in value, were in engage manufacturers and distributors would need to
the public domain and had no associated IP rights. be different. PIPRA conducted due diligence over rele-
The lack of formal IP meant that manufacturers vant technologies and ascertained that, while formal
would have less of an incentive to invest in producing IPRs existed in some countries, it was tangible property
the vaccine. GALVmed needed to explore other types rights that would provide GALVmed with both chal-
of leverage, such as forward market commitments or lenges and opportunities in its development of a pro-
other assurances of supply channels. Eventually poor commercialization strategy. GALVmed was then
GALVmed learned that deregulation of the vaccine in able to employ licensing language to create incentives
each country in East Africa was linked to an exclusive for partners, whereby a selected partner would gain
marketing authorization that offered some leverage. To geographical exclusivity in developing, manufacturing,
create a commercialization strategy for sustainable and distributing the vaccine. As was the case with the
delivery of the vaccine to East Africa, information on East Coast fever vaccine, developing an IP management
marketing authorizations needed to be integrated with strategy involved critical due diligence to determine
information on the profit incentives of manufacturers GALVmed’s risks and opportunities, and then careful
and distributors as well as consideration of the transfer consideration of how to use the available leverage to
of know-how. In summary, even though IP did not ensure that partners had incentives that aligned with
play a role in the eventual commercialization strategy, GALVmed’s obligations to deliver products to the very
formulation of an IP management strategy was critical poor.
Source: Authors.
organizations that develop technology for the poor. GALVmed has employed to address IP issues, such as due
GALVmed has made crucial IP decisions, observed their diligence, strategy implementation, and conscious leverag-
implications, and employed IP strategies suitable for both ing of IP, as well as some of the challenges involved (for
public and private partnerships (see box 6.35). example, negotiating contracts).
Through broad involvement with the RD&D process,
GALVmed addresses IP and contractual challenges, includ-
GALVMED’S INNOVATIVE APPROACH
ing accessing and transferring proprietarily owned tech-
nologies, resolving the distribution of rights, and strategi- As it has grown, GALVmed has developed a systematic
cally using IP to promote deployment. The remainder of approach that anticipates IP hurdles and mitigates IP risks
this profile focuses on the processes and resources that arise during RD&D (box 6.36). These IP management
MODULE 6: INNOVATIVE ACTIVITY PROFILE 2: INTELLECTUAL PROPERTY MANAGEMENT IN LIVESTOCK VETERINARY MEDICINES 517
Box 6.36 Internal Capacity Building for Strategic Intellectual Property Management
As GALVmed has expanded, its needs for managing IP that could be missed internally, and provides insight
have evolved. During its startup phase, to ensure that on regional laws and regulations. The execution of
IP issues were addressed from the onset of projects contracts requires expertise in local law, and non-
with utmost diligence, GALVmed outsourced IP man- profits often require legal opinions from local attor-
agement issues to a group such as PIPRA, with a neys on risks such as exposure to liability. Most
proven track record and the expertise for managing IP important, a local attorney is essentially local
within agriculture. Five years after its founding, enough to meet individuals in the organization and
GALVmed now manages an ever-growing number of understand the nuances of issues that would other-
technologies in the RD&D pipeline. The related com- wise be missed through a phone call.
plex IP challenges demand timely attention and there- ■ Improving utilization of external IP expertise to
fore in-house expertise. GALVmed’s growing internal address the resource gaps that almost always exist
capacity for IP management has been achieved internally. External expertise, in the form of con-
through three changes: tracted services from organizations or individual
consultants, can provide experience-based, impar-
■ Creating a new management role within the orga- tial advice that would be difficult to gain otherwise.
nization to deal with IP and agreements. This role External expertise (in GALVmed’s case, from
provides for focused, consistent management of PIPRA) has access to the knowledge and expensive
the drafting of time-sensitive agreements and deli- toolsets that small nonprofits may struggle to pur-
cate negotiations as well as critical accountability for chase. These experts have access to a global network
IP management. Moreover, internal expertise allows of attorneys that can provide regional legal advice
for IP management strategies that fit the organiza- that can be valuable, for example, when questions
tion’s risk tolerance, encompass organizational cul- of law arise in countries where GALVmed’s part-
ture, and can more easily be adapted to changing ners practice. Lastly, external experts have the latest
information of the technical and socioeconomic specialized insight on IP. They are capable of break-
realities of the RD&D pathway. ing down technologies, conducting highly detailed
■ Contracting the services of a local attorney from a assessments, acquiring legal insight, and converting
top-tier law firm to provide weekly and as-needed a mass of information into one thorough, mean-
support in drafting and negotiating complex legal ingful report that GALVmed’s internal expert can
agreements. A local attorney a provides the organiza- then integrate into a larger commercialization
tion with an external opinion, identifies legal issues strategy.
Source: Authors.
a. Andy Harris, associate at Maclay Murray & Spens LLP, Edinburgh.
MODULE 6: INNOVATIVE ACTIVITY PROFILE 2: INTELLECTUAL PROPERTY MANAGEMENT IN LIVESTOCK VETERINARY MEDICINES 519
for example, issues of pro-poor performance obligations, purely humanitarian, private partners, who are crucial in
geographical exclusivities, and activities for which a high ensuring that a technology becomes a successful product,
degree of uncertainty exists. GALVmed’s position as a facil- are likely to have different ambitions, which must also be
itator in the RD&D process further complicates what might considered.
otherwise be a simple contract. As a facilitator, GALVmed The need to foster stronger public-private partnerships
engages multiple parties, often playing the role of an inter- has taught GALVmed to leverage the organization’s interests
mediary or broker (see module 3, TN 4, for a discussion of while providing its partners with the opportunity to achieve
innovation brokers). GALVmed must structure contracts to their own internal mission. This understanding has served
ensure that there is a potential for leveraging to meet pro- GALVmed enormously well while dealing with contentious
poor goals, certain obligations from technology providers IP issues and creating conditions for relationships and
are integrated, and an effective recourse process is in place products conducive to success.
(should obligations be broken) with minimal impact on Another benefit GALVmed has enjoyed from its
goals and milestones. In addition, GALVmed must ensure approach to managing IP is the ability to rapidly produce,
that the expectations of the technology provider and subli- negotiate, and secure agreements with different partners.
censee are in compliance with one another. It is in The development of core IP principles and more attractive
GALVmed’s interest to release market-ready products as conditions for engaging partners have allowed the organiza-
soon as possible. Therefore it becomes GALVmed’s respon- tion to significantly increase the rate at which it can negoti-
sibility to manage challenging negotiations with all involved ate contracts.
parties in a timely and efficient way.
LESSONS LEARNED AND ISSUES FOR
BENEFITS, IMPACT, AND EXPERIENCE WIDER APPLICATION
As this profile has illustrated, IP management processes in the GALVmed’s experience in IP management (including its
private sector are highly relevant to nonprofits working to interaction with public and private partners) provides many
develop technology for the poor. IP management in the pri- lessons. A key lesson is that superficial surveys of IP are
vate sector minimizes risks and contributes key components insufficient. All organizations working in the knowledge
to a commercialization strategy that supports the organiza- economy, in the public sector or otherwise, need to proac-
tion’s goals. GALVmed, through its systematic approach to tively address IP matters. Systematic IP management will
IP management, is better able to circumvent and/or mini- improve efficient progress, reduce risk, and support the
mize IP risks that could adversely affect downstream devel- organizational mission, ultimately creating greater impact
opment and deployment operations (see the sections on IP on livelihoods of the very poor.
landscaping and IP due diligence) and can use IP manage- The resources needed to implement IP management require
ment to support its organizational goals. In the wider organizational decisions to develop certain capacities in-house
scheme of things, GALVmed’s IP management system has and determine which elements should be outsourced. Some
benefited the organization pro-poor mission by addressing have suggested that basic understanding of IP and access to
some broader issues that often delayed milestone deliver- patent information (such as information in public patent
ables, namely, the growth of innovation to sustainable, databases) is sufficient for most public sector operations. As
market-ready products. demonstrated here, however, IP issues require significant
One main point highlighted through GALVmed’s experi- expertise in analysis and the ability to develop solutions tai-
ence in strategic IP management is that organizational mis- lored to each project’s goals. Public patent data require
sions and related policies, including IP policies, must be interpretation, informed analysis, and then translation into
aligned with the ambitions of partners engaged in the a sound IP strategy that serves the organization and its
RD&D process. Ultimately, the availability of GALVmed’s development goals.
products should not depend on the existence of GALVmed GALVmed has found that a hybrid approach to IP capac-
itself. For innovations to become meaningful products with ity building, in which IP expertise is available both in-house
wide adoption, partners, preferably private, must be incen- and externally, serves the organization best. Internal sources
tivized to support the existence and availability of a product, are in closer contact with staff overseeing the RD&D process
throughout and beyond the existence of GALVmed. While and can better capture and communicate the organization’s
GALVmed’s facilitation in the development of a vaccine is needs and wants. External expertise, on the other hand, is
MODULE 6: INNOVATIVE ACTIVITY PROFILE 2: INTELLECTUAL PROPERTY MANAGEMENT IN LIVESTOCK VETERINARY MEDICINES 521
I N N O V AT I V E A C T I V I T Y P R O F I L E 3
522
Technical assistance to INSAH for the review Establishing a Procedure for the Review and Authorisation
and adoption of technical annexes to the CILSS of Products of Modern Biotechnology within the
biosafety convention ECOWAS.”
The project worked in partnership with INSAH (the tech-
nical arm of CILSS) and the West and Central African Technical assistance to enhance the environmental
Council for Agricultural Research and Development risk assessment capacity of the national biosecurity
(WECARD, referred to more commonly by its French agency, Burkina Faso
acronym, CORAF)1 as well as representatives from national
The STTAB project also endeavored to work with national
environment and agriculture ministries to improve the
agencies and authorities to build institutional and human
Framework Convention Instituting Common Regulations
resource capacity in risk assessment, risk management, and
for Conventional and Transgenic Seeds in the CILSS Area.
decision making at the national level. When the project
During a series of four subregional meetings and with
began, Burkina Faso was the only country in West Africa to
additional bilateral inputs from CILSS country representa-
have approved confined field trials of a GE crop, insect-
tives, the CILSS Convention was substantively rewritten in
resistant (Bt) cotton. To approve these trials, Burkina Faso
an effort to address the activities of the subregional process
had promulgated biosafety regulations and established
consistently and without duplication. The contained, con-
ANB, its national biosafety agency reporting to the environ-
fined, and unconfined uses of GE organisms were clearly
ment ministry (Ministère de l’Environnement et du Cadre
differentiated. The regulatory responsibilities for each of
de Vie). While the ANB, which has a legal mandate for the
these activities were defined. The technical annexes, which
coordination and monitoring of all activities pertaining to
describe the technical information required for applica-
the implementation of biosafety in Burkina Faso, was
tions to the regional scientific review panel, were more
already active in the field, budgetary and technical capacity
clearly aligned with the types of applications that will be
constraints limited its effectiveness. Preserving and building
received in the subregion and with international stan-
on the advances in Burkina Faso required building signifi-
dards and guidance related to the regulation of GE organ-
cant and sustainable capacity within the ANB.
isms established by Codex Alimentarius, OECD, and the
Cartagena Protocol.
INNOVATIVE ELEMENTS
Technical assistance to INSAH to develop and
implement an ECOWAS regulation on biosafety The innovative elements of STTAB were its regional
approach to what was initially perceived as a national prior-
In August 2008, the Experts Group Meeting on ECOWAS ity. The approach proved flexible enough to be developed
Biosafety Regulation, attended by environment and agricul- into a novel model for subregional harmonization of
ture representatives from 14 ECOWAS countries, concluded biosafety regulations.
with a request to INSAH-CILSS to extend the CILSS Frame-
work Convention to all of the ECOWAS member countries.
Building on the STTAB project’s support to INSAH for the Identifying and responding to a national priority
with positive regional spillovers
development of a regional biosafety framework within West
Africa, this initiative aimed to extend the CILSS Biosafety Initially, the STTAB project focused most of its technical
Convention under the ECOWAS mandate. capacity-building in Burkina Faso. This strategic decision
Specifically, the objective was to develop an ECOWAS was based on the fact that: (1) Burkina Faso’s government
Regulation governing the importation, development, man- had clearly indicated its support for the commercialization
ufacture, and use of GE organisms and products derived of Bt cotton and, to that end, had made significant steps
thereof within ECOWAS Member States and to facilitate a toward establishing a biosafety regulatory system (see box
consultative process leading to the adoption of the Regula- 6.28 in TN 4 in this module) and (2) farmers expressed sig-
tion. The ECOWAS Biosafety Regulation was to be consis- nificant interest in cultivating Bt cotton, generated by prom-
tent with the spirit of the CILSS Biosafety Convention, ising results from field trials conducted from 2003 to 2006.
incorporating the best elements of that framework, includ- Environmental risk assessment training was provided to
ing its technical guidance on risk assessment procedures. ANB personnel and other scientists so that a premarket
The resulting document was “Regulation C/Reg.1/12/08 environmental risk assessment of Bt cotton could be
MODULE 6: INNOVATIVE ACTIVITY PROFILE 3: A SUBREGIONAL APPROACH TO REGULATING AGRICULTURAL BIOTECHNOLOGY 523
undertaken. The assessment was a prerequisite for the deci- training, and serves as a potential model for other countries
sion to approve Bt cotton. in the subregion (or elsewhere in sub-Saharan Africa).
The commercial cultivation of Bt cotton in Burkina Faso
contributed to an increase of about 16 percent of overall
A novel but feasible model for subregional
production in 2009/10. It is anticipated that 95 percent of
harmonization
harvested area (442,900 hectares) in 2010 will be planted to
Given the ease of transboundary movement of seed between Bt cotton compared to the 2009/10 season (106,000
countries in West Africa, the impending commercial hectares). This expansion is expected to contribute signifi-
authorization of Bt cotton in Burkina Faso was an impor- cantly to national cotton production.
tant catalyst for countries to work toward implementing a The ECOWAS regulation has not been submitted for
subregional approach to biosafety regulation. From prior approval, so it remains to be seen how implementation will
stock-taking exercises and subregional consultations, it was proceed. The West Africa Regional Biosafety Project,
apparent that the project should direct regional harmoniza- launched in June 2009 by the West African Economic and
tion to the development of a mechanism whereby the Monetary Union (WAEMU) with funding from UNEP-GEF
science-based risk assessment would be undertaken by a and the World Bank, has a component to strengthen insti-
subregional body but all decision-making would remain at tutional capacity for preparing regional laws and regula-
the national level. A subregional body responsible for tions on biosafety and creating an institutional framework
undertaking risk assessments for specific types of applica- to accompany the dissemination and implementation of the
tions (such as confined field trials, food safety assessments regional biosafety framework in WAEMU countries. A joint
for GE food, environmental risk assessment of GE plants) CILSS-ECOWAS-WAEMU committee is currently review-
and providing scientific opinions to the member countries ing the ECOWAS Regulation to determine how it may be
was considered the most achievable form of harmonization. best incorporated into the WAEMU project. The end result
This model differed from the only other examples of subre- may be that the ECOWAS Regulation will become a joint
gional harmonization that have been implemented interna- ECOWAS-WAEMU Regulation.
tionally. In the EU, national decisions about cultivating GE
crops are delegated to a subregional body, but this model
has been ineffective. In Canada and the United States, har- LESSONS LEARNED AND ISSUES FOR
monization of technical requirements for risk assessment WIDER APPLICATION
has not resulted in appreciable gains in the efficiency or The lessons from this experience are summarized in the
effectiveness of their representative regulatory systems. sections that follow. They focus on the factors that
The revised CILSS Convention and follow-on ECOWAS contribute to successful collaboration, including a clear
Regulation provide a practical and achievable approach to appreciation of the stakeholders involved, the potential
biosafety regulation in a subregion where national govern- incentives for collaboration, and the capacity-building
ments have limited scientific resources (human, financial, requirements that must be fulfilled if collaboration is to
and institutional) to draw upon. An essential element of this yield useful results.
project was to build capacity among the country represen-
tatives involved in drafting these documents so that the
Understand who the key players are and engage
implications of specific policy choices and regulatory
them early in the process
approaches could be considered.
The INSAH-CILSS process that led to the development of
the first draft of the Framework Convention was criticized
BENEFITS, IMPACT, AND EXPERIENCE
because the Convention was developed by Ministries of
This STTAB project has resulted in both direct and indirect Agriculture without representation or input from national
benefits in the subregion. Building the capacity of Burkin- biosafety focal points or Ministries of Environment. The
abe risk assessors and regulators to undertake the environ- process to revise the Convention under the STTAB project
mental risk assessment of GE cotton was one of the factors deliberately included representation from a broader range
contributing to its eventual approval. This effort has of ministries. This more inclusive approach was an impor-
strengthened the ANB nationally, promoted its visibility tant step in correcting the apparent absence of prior inter-
within West Africa as a regional resource for risk assessment ministerial engagement.
Subregional harmonization is unlikely unless there Identify how project outcomes can be sustained
is an imperative for countries to engage Neither the CILSS Convention nor the ECOWAS Regulation
meaningfully in the process
identifies provisions for funding the subregional activities
In the case of West Africa, the commercial release of Bt cot- described in each (such as convening the subregional scien-
ton in Burkina Faso was a pivotal event. While there had tific panel). Funding for biosafety capacity building in West
been efforts to promote a subregional approach to Africa, including support for the development of national
biosafety regulation prior to the impending approval of Bt and subregional biosafety regulatory approaches, has come
cotton, the expectation that Bt cotton seed would move to from the EU, United States, and Japanese donor agencies, as
other countries within the subregion provided a real-world well as foundations and international financial institutions
example of why a subregional approach to risk assessment such as the Bill and Melinda Gates Foundation, the
was desirable and even necessary. Given that most West McKnight Foundation, the Rockefeller Foundation, and the
African countries have very limited capacity in biosafety World Bank. Mechanisms for sustainable funding of a sub-
risk assessment and risk management, a subregional risk regional biosafety regulatory system by West African gov-
assessment of Bt cotton under the process described in the ernments have not been established.
MODULE 6: INNOVATIVE ACTIVITY PROFILE 3: A SUBREGIONAL APPROACH TO REGULATING AGRICULTURAL BIOTECHNOLOGY 525
I N N O V AT I V E A C T I V I T Y P R O F I L E 4
526
levels was designed intentionally to meet sellers and service INNOVATIVE ELEMENTS
providers halfway.
As the rural poor have organized, saved, accessed credit,
and built skills and assets, they have more effectively voiced
OBJECTIVES AND DESCRIPTION their demand for goods and services. In response, govern-
Aside from eliminating some of the barriers that prevented ment agencies, NGOs, and private companies have
commercial banks from offering services in rural areas, a designed products and interventions to answer their
major goal of linking organized rural groups to formal demand and fulfill their needs in a number of sectors,
credit and other services is to accommodate the constraints including agriculture, finance, nonfarm employment,
typical of SHG members, including time constraints. A health, and education.
premium is placed on convenience and on enabling the In many instances, these service providers use a copro-
individual customer to conduct multiple transactions in a duction model in which the institutions of the poor become
single visit. A closely related goal is to provide them with a agents or franchises of an agency or business to extend its
relatively complete menu of financial services, including outreach and deliver services more cost-effectively. This
credit, insurance, and instruments for poor households to practice not only provides services but generates employ-
swap burdensome informal debt obligations for new obli- ment within rural areas. In some instances, the Village Orga-
gations in the formal sector with more stable and reason- nization operates a commodity procurement center where
able interest rates (a high priority among the poor in the agricultural inputs are sold. The approach builds capacity in
state). The insurance instruments are designed to protect the institutions, provides employment, and helps poor
vulnerable clients from the financial effects of events that clients become more integrated with the value chain (for
often leave people in poverty, including pensions that pro- example, the procurement center will buy their produce and
vide security in old age. Figure 6.3 shows how SHGs and sell them inputs to improve yields in the next cycle).
their federations create an enabling environment for inno- In other instances, the poor have innovated by develop-
vation by empowering the rural poor to acquire the capac- ing their own enterprises in response to program-supported
ities, services, market access, and social safety nets that pave activities. Some community members sell biopesticides and
the way for innovation. biofertilizers to farmers in response to the community-
Figure 6.3 Self-Help Groups Constitute a Rural Institutional Platform That Enables the Rural Poor to Acquire the
Capacities, Services, Market Access, and Social Safety Nets That Pave the Way for Innovation
Investing in enterprises
Access to markets Public-private people
and jobs partnerships
Investing in value chains
Savings
Access to financial
Rural institutional Credit
services
platform:
Insurance
• Self-help groups
• Village organizations Bookkeeping
• Subdistrict federations
• District federations Developed
Planning
capacities
Job skills
Food security
Safety nets, risk,
Death and disability
and vulnerability
insurance
management
Pensions
Source: Authors.
MODULE 6: INNOVATIVE ACTIVITY PROFILE 4: FINANCIAL AND OTHER SERVICES IN RURAL ANDHRA PRADESH 527
managed sustainable agriculture initiative (see module 1, health, marriage, and home repair. The banks offered prod-
IAP 4). Others provide public services that have not reached ucts and services in all these areas, including support for
their location, such as preschools or nutrition centers for long-term investment in land. Because escaping from debt
pregnant women and young children. These services are has been a major priority for many rural households in
especially important in the tribal areas. Andhra Pradesh, banks also arranged debt swaps and pro-
The foundation of this entrepreneurial innovation is vided credit with which to retire costly informal loans. Even
access to financial services. These services enable the poor to better, the new services enabled poor people to avoid the sit-
accumulate assets and create a less risky environment in uations that had made them easy prey for informal money-
which they can capitalize on livelihood opportunities. lenders. Lending is based on household investment plans
that are vetted by the SHGs and Village Organizations.
Community-based recovery mechanisms ensure repayment
BENEFITS AND IMPACTS
rates of 95 percent or higher to the banks.
The benefits and impacts of providing formal financial ser-
vices to clients previously regarded as too risky to serve have
Insurance services to reduce vulnerability
ranged from the tangible benefits that people obtain from the
services themselves to less tangible effects such as financial Illness and death can plunge or further entrench a family in
discipline or the sense of security derived from savings and poverty. Private companies had often viewed the transaction
insurance plans. Commercial banks have benefited from costs of providing health, disability, and life insurance as
innovative business models that make it possible to tap into a prohibitive in rural areas, but community-managed struc-
vast and underserved rural market. The successes of the pro- tures dramatically reduce those costs by taking on tasks such
gram in Andhra Pradesh and other states, and the benefits of as enrolling members and verifying, documenting, and
the products, services, and new models developed expressly processing claims. In Andhra Pradesh, community resource
for a large base of very poor clients, inspired the Government persons (bima mithras) are trained to fulfill these responsi-
of India to establish a National Rural Livelihoods Mission. bilities on behalf of the Life Insurance Corporation of India
The Rural Livelihoods Mission will apply the strategies devel- (more information on community resource persons appears
oped through this program at the national level. below). District federations have established call centers and
developed a web portal to process transactions. The resource
persons and call center make insurance services far more
Building a bridge to formal credit
economical to provide and far more accessible to the rural
The savings, thrift, and inter-lending activities around poor, reducing the time to deliver insurance benefits by half.
which SHGs are organized provide members with experi- Throughout Andhra Pradesh, more than 1.5 million SHGs
ence in financial discipline, money management, and in were organized during the first ten years of the Indira Kran-
conducting transactions and repaying loans. Over time, thi Patham program. During that period, SHG members
these competencies enable people to establish a history of accessed more than US$6 billion in credit from commercial
repayment, obtain a credit rating, and then engage with banks. More than 11 million members and their families paid
banks or microfinance institutions. As a result, bank lending for death and disability and health insurance coverage, and
has increased from Rs 1.97 billion (US$48 million) in over US$100 million worth of claims have been settled. Over
2001–02 to Rs 65 billion (US$1.6 billion) in 2009–10. By 1 million SHG members have a separate health savings
early 2010, banks had extended loans of Rs 251 billion account, and as many as 3,000 villages have dedicated health
(US$6 billion) to SHGs without any collateral. risk funds to mitigate the shocks of health emergencies. More
than 3,000 villages have nutrition centers for pregnant and
lactating mothers and children under five.
Total financial inclusion
As banks began to see the rural poor as customers, they
The use of procurement center
altered their business model to accommodate this new
source of demand. Rural households generally require Procurement centers operated through Indira Kranthi Patham
working capital to support their current activities, capital to are an important convening venue for small-scale producers
invest in new income-generating activities, and cash to meet and prospective investors. Small-scale producers, whose sales
basic consumption needs and social obligations, such as were previously dispersed widely among informal buyers,
MODULE 6: INNOVATIVE ACTIVITY PROFILE 4: FINANCIAL AND OTHER SERVICES IN RURAL ANDHRA PRADESH 529
NOTES 3. See Benoit (2007) for a good overview of indicators rel-
evant to assessing innovation systems.
Module 6 Overview
1. Of 145 countries for which data were reported for the
years 1999/2000 and 2000/01, about one-third reported that Thematic Note 3
more than 95 percent of secondary school students were 1. World Bank (2006) discusses this issue for many highly
enrolled in general programs and less than 5 percent in relevant country-level investments related to plant
vocational or technical programs. Most European countries breeding.
reported 20-40 percent enrollment in vocational/technical
2. For example, it does not adequately emphasize the
programs at the secondary level.
importance of IPRs in access and benefit sharing, in which
2. IPRs: World Trade Organization (WTO) and World “access” refers to accessing traditional knowledge and
Intellectual Property Organization (WIPO); PVRs: Interna- genetic resources, and “sharing” refers to sharing the ben-
tional Union for the Protection of New Varieties of Plants efits (commercial and otherwise) arising from the use of
(UPOV); Biosafety: Global Environmental Facility (GEF); traditional knowledge and genetic resource.
and SPS standards: Standards and Trade Development
3. For a thorough exploration of these issues, see Maskus
Facility (STDF), World Animal Health Organization (OIE),
(2000).
and International Plant Protection Convention (IPPC).
4. See http://www.wipo.int/ipadvantage/en/details.jsp?id
3. Union internationale pour la protection des obtentions
=2595.
végétales, established in 1961.
5. Commission on Intellectual Property Rights (2003).
4. TRIPS is the Agreement on Trade Related Aspects of Intel-
lectual Property Rights, signed in 1994 as part of the Uruguay 6. “IPR-related” here refers to a broader definition of IP as
round of the General Agreement on Tariffs and Trade creations of the mind or value added by innovative think-
(GATT). The TRIPS agreement obliges all members of the ing. Even a hybrid plant variety, then, can be considered in
World Trade Organization (WTO) to have some form of IPR some sense a form of IPR in agriculture, because control
legislation in place. Low-income countries are given additional over the parents prevents others from profiting from the
time to fulfil this obligation but eventually must comply. fruits of the breeder’s investment.
5. The Cartagena Protocol, which is part of the Conven- 7. See http://www.wipo.int/export/sites/www/ip-develop
tion on Biological Diversity, was signed in 2000. ment/en/agenda/recommendations.pdf.
8. Patent pools, patent commons, and clearinghouses are
essentially joint marketing systems in which a number of
Thematic Note 1 agencies agree to market their IP as a common entity, making
1. See, for example, Johnson (2002), Paterson, Adam, and it simpler for a licensee to obtain access to a number of dif-
Mullen (2003), Ivanova and Roseboom (2006), Hekkert et ferent pieces of IP in a single transaction. Patent commons
al. (2006), and World Bank (2010). are typically free to access, although this is not always the case.
2. Innovation policy calls for a “whole-of-government” 9. Empresa Brasileira de Pesquisa Agropecuária, Brazil’s
approach. It depends on the establishment of efficient gov- national agricultural research organization.
ernment machinery able to ensure the needed coordination. 10. For example, assessing whether the researchers’ rights to
Although its mechanisms must be adapted to existing insti- use technologies, materials, and data are aligned with the
tutional frameworks and to cultural backgrounds, models project’s activities and evaluating potential related risks.
that place a powerful coordinating body at the center of
government allow innovation policy to have a pervasive
influence (World Bank 2010). Thematic Note 5
1. The CAC initially formulated international commodity
Thematic Note 2 and product standards, but this role has expanded to
include commodity-related guidelines and codes of prac-
1. Formerly MoST, the Ministry of Science and Technology. tice; general standards and guidelines on food labeling; gen-
2. This taxonomy of key governance capabilities is based eral codes and guidelines on food hygiene; guidelines on
on numerous studies undertaken by Advansis. Compare food safety risk assessment; standards, codes, and guidelines
also with findings of the OECD Monitoring and Imple- on contaminants in foods; standards, guidelines, and other
menting National Innovation Policies (MONIT) project recommendations on sampling, analysis, inspection, and
(OECD 2005). certification procedures; maximum limits for pesticide
Assessing, Prioritizing,
Coordination Monitoring,
and Collective Action for
and Evaluating
Agricultural Agricultural Innovation
Innovation
Systems
OV E RV I E W
Accountability. A transparent management system that example, with indicators using quantitative or qualita-
ensures participation and open communication and tive data) in relation to mandate, strategy, objectives,
reporting on results obtained and inputs used to and client needs.
achieve the results. Theory of change or intervention logic. The under-
Assessment. Making decisions about innovation to lying assumptions in an intervention that link inter-
know why investment is necessary to transform modes of vention inputs with expected outcomes.
production and consumption. Assessment is also done Monitoring. Tracking progress in stimulating
to speed the search function within innovation systems changes in the policy and institutional environment;
(for example, to identify new, more sustainable, and internal to an intervention and learning-based.
more equitable routes to value creation in agriculture). Evaluation. Performed on behalf of the investor to
Decision making. Decision making is not centralized gauge the effectiveness of the design and execution of the
but occurs throughout the system. Rather than limiting intervention supported by the investor and the observed
the focus to any single line of inquiry or information impacts associated with it. Evaluation is also done to
source, interactive learning feeds decision making and inform the intervention logic of new investments.
requires individuals and groups to be open to different Information gathering. The collection, communi-
and imaginative ways of thinking as well as to be recep- cation, analysis, and reporting of quantitative and qual-
tive to new ideas and directions that match the context. itative data by various stakeholders, which makes it
Priorities. The areas to which internal and external possible to assess: priorities, capacities, and perfor-
resources will be allocated to address problems or take mance; components within the system, such as institu-
advantage of opportunities. tions, partnerships, and interventions; or the system’s
Performance. Results in the form of productivity resources (human, financial, physical, and other
(outputs), outcomes, and impact, measured (for resources).
Source: Authors.
Tasks such as assessing, prioritizing, monitoring, and eval- Today, the responsibilities of decision making and manag-
uation will be widely used across the system and by a range ing innovations are spread across a range of actors at differ-
of stakeholders. For instance, donors and community lead- ent levels of the innovation system. It is important to recog-
ers may be concerned with tasks such as evaluating social nize that each of these levels requires different investments,
and economic outcomes from past agricultural innovation. and while coordination may still occur, it is rare for a single,
Scientists and public planners compile data and analyses of centralized agency to be responsible for assessment, priority
future trends and priorities and monitor indicators of setting, monitoring, and evaluation within the AIS. These lev-
change within the system. Entrepreneurs may track returns els, which are useful for organizing the discussion in the rest
to current project investments and farmers may assess of this overview, include the following:
value chains of specific interest to them as producers.
■ Policy level. At this level, the actors are responsible for
Efforts are also made to connect all types of decision
creating the enabling environment for innovation (see
makers within the system to meet their shared need for
module 6). At this level, decision making and manage-
information and intelligence about their current context.
ment emphasize coherence across sectors, scenario devel-
No single organization or type of organization can provide
opment, and benchmarking innovation capacities.
the knowledge needed to inform policy, set priorities, or
■ Investment level. At this level, the actors are responsible
propose interventions. Monitoring can facilitate mid-
for designing and prioritizing interventions that support
stream adjustments, while evaluation at the final stages of
innovation. Decision making and management empha-
an intervention enables outcomes and impacts to be thor-
size evaluating the performance of investments and test-
oughly investigated to inform future investment decisions
ing the underlying assumptions that shed light on the
and negotiation among stakeholders.
“why” question for new investments.
Financial planning Match financial availability to needs Develops annual budgets and strategies Needs to ensure a link to project
(variable). to identify and develop alternative monitoring and evaluation to respond
sources for an organization’s core and to low-performing activities and
operational funding. rebalance resources with programs.
Human resource Efficiently manage and develop human Analyzes capacity-building needs and Needs to ensure a link to project
and training resources (variable). prepares to develop knowledge, monitoring and evaluation to respond
plans attitudes, and skills of individuals in an to low-performing individuals, redirect
organization. training efforts, and rebalance human
resources with programs.
Priority setting Final stage of planning that defines an Rationalizes investment in relation to Implementation can deviate from agreed
investment portfolio that is consistent limited resources, external demands for priorities. Priorities set without explicit
with national policy and development transparency, and focus on client needs. support of key stakeholders and
goals, organizational mission, and program staff can lead to conflict in the
program objectives. organization.
Source: Authors; Gijsbers et al. 2000; Alston et al. 1995.
A supportive fiscal environment that values access to information that could otherwise be scanty or
assessing, prioritizing, monitoring, and evaluating overwhelming and difficult to sort out. Information accessi-
AIS and ensures information access ble to one stakeholder group may not necessarily benefit
Within public institutions, management tasks associated another, so resources are also needed to assess users’ infor-
with information, knowledge, and learning are often mation needs.
squeezed into already tight budgets for financing R&D and It is also appropriate for the public sector to play a key
innovation (Hall and Learner 2010). Allocating sufficient role in mobilizing information for policy, priorities, and
funding for information management should also ensure performance management in AIS and making this informa-
access to more and better information. For example, pro- tion as widely accessible as possible. Public agencies, such as
duction data in developing countries are notoriously unre- universities, research institutes, and government depart-
liable, and food stock data around the world are highly ments, can collect, analyze, and communicate information
secretive. Releasing research results or making information about the AIS, making it available not just to their own net-
such as price and market data widely accessible using a works but to wider professional or producer associations,
range of communication strategies and media can facilitate media agencies, private sector groups, and others. An exam-
Table 7.2 Decision Making and Management Processes and Tools at Different Levels
of an Agricultural Innovation System
Stakeholders
Level involved Key management processes Tools (related TN/IAP)
Policy National policy – Track progress of the national system and its functions – Benchmarking (TN 1)
makers, sector – Coordinate agriculture with other sectors (modules 1 and 6) – Innovation surveys (TN 2)
committees – Inform global or regional public policy networks – Foresighting and scenario planning
– Design an enabling environment (intellectual property, (TN 3, IAP 1)
banking, pricing, and tax regimes) (module 6)
Investment Finance ministry, – Prioritize and allocate resources – Diagnostic studies with a commodity or
program donors, private – Identify new investment opportunities or bottlenecks subsector focus (TN 3, IAP 5)
sector, technical – Review effectiveness of past investments – Benchmarking (TNs 1 and 4)
team leaders – Improve underlying theories of change (intervention logic) – Evaluation and impact assessment (TN 5)
of new investments
Organization Executive – Assess organizational performance (TN 2) – Performance indicators (TN 2)
officers, board of – Set organizational policy and program priorities – Innovation surveys (TN 2)
directors, – Enable organizational and institutional learning and change – Self-organizing networks (IAP 4)
research (module 4, TN 5) – Evaluation and impact assessment (TN 5)
organizations, – Respond to changing innovation landscape – Institutional histories (TN 4)
extension – Network mapping (IAP 2)
organizations – Reflexive monitoring in action (TN 4)
– Causal process tracing (TN 4)
Intervention Nongovernmental – Accountability to investors – Participatory impact pathway analysis
organizations, – Managing effectiveness of program/project implementation – Outcome mapping (TN 4)
private sector, – Managing innovation processes, including effectiveness of – Gender analysis of value chains (IAP 3)
research and networks, interactions, and ways of working – Rapid appraisal of agricultural knowledge
extension – Testing and reframing theories of change (intervention logic) systems (TN 4)
program leaders, – Responding to unexpected outcomes – Stakeholder analysis (IAP2)
project managers – Responding to changing innovation environments – Most significant change analysis
Source: Authors.
546
assessment—back into decision-making processes for AIS must participate, and that projections of the potential
investments in innovation. impact of policies and investments are fundamental ele-
Regardless of whether the AIS is mature and operating ments of assessment.
within the context of an established national innovation Three analytical methods are recommended for assessing
policy, assessment and priority setting for policy and invest- and prioritizing investments in agricultural innovation: (1)
ment program levels are relevant to any system.3 Module 6 understanding the theory of change; (2) measuring the
describes national innovation policy and discusses how the functions of innovation systems; and (3) making compar-
development of innovation priorities across sectors and isons across innovation systems. Each is discussed in the
technologies (and the public resources allocated to them) is sections that follow.
coordinated with specific policies and priorities for innova-
tion within a particular sector or technology domain. IAP 4
Theory of change
(India) and IAP 5 (Chile) in this module describe foresight-
ing processes that contribute to overall innovation policy The process of assessment is one of judging and making
processes, the assessment of policies for innovation, and pri- decisions. As a lens through which innovation is under-
oritizing areas for investment. This note focuses on specific stood, a theory of change is the set of hypotheses, as devel-
methods for exploring the underlying theory of change, oped by stakeholders, of how policy and investment prior-
measuring the functions of the AIS to identify capacity and ities, and the resulting programming and projects, plan to
resource gaps, and using policy and investment-level bench- achieve their intended goals and objectives, including
marks and indicators to make comparisons across countries social, economic, political, and environmental change
and sectors. objectives. This kind of assessment is sometimes referred
to as the causal model. The assessment team works with
actors and networks having a stake in the innovation
ASSESSMENT METHODS
process to identify the underlying assumptions, values,
In general, assessment has two major dimensions: ex and definitions of individuals and organizations. Box 7.2
ante (prior to implementing an investment interven- lists the kinds of questions raised in a theory of change dis-
tion) and ex post (after implementing an investment cussion to inform an analytical process that will lead to
intervention) (table 7.3). Each type of assessment seeks complementary methods, such as organizational assess-
to increase the efficiency and effectiveness of past invest- ment (TN 2), foresighting, building scenarios, and vision
ments while ensuring transparency and accountability statements (TN 3 and IAPs 4 and 5).
for new investments.
Like the other processes discussed in this module—orga-
nizational assessment (TN 2), foresighting (TN 3), moni- Box 7.2 Questions for Assessing the Theory
of Change in Innovation Systems
toring (TN 4), and evaluation (TN 5)—in the context of an
AIS, the assessment of innovation systems and associated
investments recognizes that the dynamics of the innovation ■ What is the definition of innovation in the
system change constantly, that stakeholders throughout the given context?
■ How do innovations emerge and develop in the
given context?
Table 7.3 Roles of Ex Ante and Ex Post
■ Who are the innovation actors (organizations)
Assessments
in the given context?
Ex ante assessment Ex post assessment ■ What policies and investments exist to support
– Analyzes the likely impact of – Assesses impact. innovation in the given context?
a proposed intervention. – Supports accountability ■ What policies and investments do not exist to
– Identifies the optimal portfolio reporting to investors. support innovation in the given context?
of investments according to – Justifies allocation of resources.
specific programs or projects. – Generates lessons.
■ How are innovation trends, processes, and
– Establishes a baseline or – Identifies recommendations products measured in the given context?
framework to collect and for future interventions. ■ What are the key sources of data on innovation
compare information for ex in the given context?
post evaluation.
Source: Author.
Source: Author.
Table 7.4 Ten Functions of Innovation Systems and Related Data Sources
Key functions Main sources for data or cases
1. Providing R&D and creating new knowledge. International or government sources, R&D dialogues, end-user surveys.
2. Building competence in the labor force (includes education, International or government sources; student performance measures;
training, creation of human capital, production and reproduction employer surveys on education, vocational training, and other variables.
of skills, and individual learning).
3. Forming new product markets. International, government, and industry sources, including new market
surveys.
4. Forming new quality requirements arising from the demand for International, government, and industry sources, including product
new products. surveys or consumer studies.
5. Creating and changing organizations for the development of new International, government, and industry sources; policy dialogues;
fields of innovation. actor-network analysis; innovation surveys.
6. Networking through markets and other mechanisms, including Government and industry sources, policy dialogues, actor-network analysis,
interactive learning among different organizations. innovation surveys.
7. Creating, changing, and abolishing institutions that influence International, government, and industry sources; policy dialogues; innovation
innovating organizations by providing incentives or removing surveys.
obstacles to innovation.
8. Incubating activities for new innovating efforts. Industry, government sources, R&D dialogues, innovation surveys.
9. Financing innovation processes and other activities that can International, government, and industry sources; policy dialogues;
facilitate the commercialization of knowledge and its adoption. investment surveys; and impact assessment.
10. Providing consultancy services relevant to innovation processes. Government and industry sources, professional association surveys.
Table 7.5 Guidelines for Benchmarks and Indicators for Innovation Systems
Key measurement – Interactions among enterprises (e.g., joint research activities; technical collaboration).
considerations – Interactions among enterprises, universities, and public research institutes (e.g., joint research, joint patenting, joint
publications, network analysis of informal linkages).
– Diffusion of information, knowledge, and technology to enterprises (e.g., industry adoption rates for new technologies;
consumer data; strengthened competencies; skills training).
– Human resource flows (e.g., movement of highly qualified personnel within and between the public and private sectors).
Key techniques for – Institutional assessments for analyzing human resource flows; institutional linkages; industrial clusters and innovative firm
assessment behavior (TN 2).
– Innovation surveys question enterprises on their sources of knowledge most relevant to innovation and allow a comparative
ranking of sectors/industries and national systems, including regional and global comparisons; surveys used by OECD are
typically based on OECD’s Oslo Manual (first developed in 1990 and currently in its third edition; see OECD 2005).
– Cluster analysis (see also TN 4 in module 5) focuses on the interactions between particular networks of enterprises across
and within specialized sectors and even internationally; tools may include social network analysis and deliberative mapping,
among others.
– Evidence-based management focuses on obtaining the best facts. Even less-than-favorable evidence is accepted during the
assessment to “learn by doing.” This technique cautions against complacency in achieving benchmarks set by comparing
one country to another, perhaps within the same region, and by avoiding dialogue about mistakes, risks, and uncertainties.
Key investment and – Upgrading competencies in individual organizations; incentives and recognition for innovative work in individual enterprises
financing and clusters.
considerations – Investing in higher education; R&D in public institutions; access to public research.
– Private-public research initiatives; improved intellectual property and knowledge management; investing in information and
communication technology.
– Competitive or matching grants or low-interest loans; science/trade fairs; new business incubators.
– Facilitate the national system to engage in international knowledge flows, including knowledge acquired abroad as capital
or intermediate goods; foreign direct investment; purchases of foreign patents/licenses; establish learning alliances; trade in
services such as technical consultancies; aid-for-trade; internationally coauthored publications and R&D.
Table 7.6 Examples of Classic Indicators for Policy and Program Investments Compared with Indicators for
AIS Policy and Program Investments
Classical indicators AIS indicators
Agricultural GDP and GDP growth rate Share of farmers who have tried/adopted some new agricultural
production practice (e.g., new crop variety or livestock breed)a
Total agricultural factor productivity Share of farmers who have tried/adopted some new agricultural marketing
practice (e.g., pre-production contracts, collective marketing)a
Yields per hectare of major food staple and high-value crops/livestock Share of farmers who have tried/adopted some new natural resource
management technique (e.g., conservation tillage, soil erosion controls,
water harvesting)a
Share of cultivable land under modern varieties Share of agricultural firms that have tried/introduced some new product or
process innovation
553
Figure 7.1 Conceptual Diagram of a National Agricultural Innovation System
within the innovation system (organizational assessments). within the innovation system can be assessed. The following
In conducting an assessment at the organizational level, a pri- options may be considered:
mary task is to clarify the objectives of the assessment. Box 7.4
presents a number of questions related to the performance of ■ Benchmarking. One approach is to compare the organi-
an organization within an AIS. The questions illustrate the zations within the system in a particular country with
range of objectives that an organizational assessment may those of other countries, typically countries in the same
need to consider to gain a comprehensive understanding of region or countries that are otherwise comparable. If
that performance. quantitative indicators are used, this approach is known
In addition to clarifying the objectives of an assessment, as “benchmarking.”
it is also important to identify who will use the results. ■ Changes over time. Another approach (which can be
Assessments may be carried out by organizations that fund, combined with benchmarking) is to compare the perfor-
or intend to fund, organizations within the innovation sys- mance of the organization at different points in time and
tem. However, assessment results need to be fed back to the determine whether it improved or deteriorated.
management of the organizations involved to stimulate ■ Policy goals, organizational objectives, or standards.
institutional learning and change. Moreover, as discussed A third approach is to compare organizations against
below, assessments benefit from the involvement of staff goals that have been set by policy makers, by managers of
members as well as users of innovation-related services. the respective organization, or by another entity, such as
Another primary task is to select the standard or reference a donor organization or certification or accreditation
situation against which an organization’s performance agency.
MODULE 7: THEMATIC NOTE 2: METHODS FOR ORGANIZATIONAL ASSESSMENTS IN AGRICULTURAL INNOVATION SYSTEMS 555
in a dialogue about the role and performance of a specific previously) and by using the “snowball system”—that is, by
organization with the innovation system. asking respondents to identify other persons who should be
interviewed.
Mapping the AIS. Even if an assessment ultimately focuses Information can be collected from experts in different
on only one organization within an AIS, an organizational ways. One alternative is to conduct semistructured inter-
mapping of the AIS as a whole is useful to gain a clear views, using an interview guideline. It is also possible to use
understanding of the environment in which the focus a questionnaire for an expert survey and ask respondents to
organization operates (for example, it can help to answer score the various actors in the innovation system on a scale
some of the questions raised in box 7.4). The outcome of (of one to four, for example) regarding their effectiveness,
organizational mapping is a diagram that displays the responsiveness, accountability, organizational performance,
essential organizations in the innovation system and their and other criteria. Even though the scoring results will reflect
relations to each other. The mapping process may take a subjective assessment of the actors involved, this approach
different forms, but it needs to be based on an assessment yields useful information. Similarly, governance indicators
framework. If time and resources are limited, the major are often based on expert assessments, and if a standardized
organization within the AIS usually can be identified by approach is applied, such data can be used as indicators to
compiling information from the documents and literature monitor changes over time or make comparisons across
available and interviewing experts based on a semistructured countries. For an example of how an expert survey was used
questionnaire. in Ethiopia, see Spielman and Kelemework (2009).
For example, if the goal is to map the national innovation
system for dairy production and the assessment framework
METHODS FOR ASSESSING ORGANIZATIONS
displayed in figure 7.1 is used, the analyst will have to com-
WITHIN AN INNOVATION SYSTEM
pile information on the following questions:
This section introduces methods that can be used to assess
■ Which research organizations deal with dairy production? a specific organization within an AIS, such as an agricul-
■ Which education organizations provide training for tural research institute, agricultural training center, or agri-
dairy production at different levels (diploma, graduate, cultural extension organization. The methods include staff
postgraduate)? and farm household surveys as well as methods derived
■ Which extension organizations provide advice on dairy from business administration to assess organizational
production? performance.
■ Who are the major players in the value chain (dairy pro-
cessing companies, for example)?
Organizational performance assessment
■ Which organizations of dairy farmers, such as dairy
cooperatives, exist? The business administration literature describes a wide
range of methods that organizations can use to assess and
The analyst can construct a diagram based on the infor- manage their performance. One approach that is particu-
mation collected and use it to collect further information on larly relevant for innovation systems is the Organizational
innovation system actors and organizations, especially their Performance Assessment (OPAS), developed for agricul-
roles and interactions. Some mapping techniques make it tural research institutes by the former International Service
possible to visualize the innovation system during the inter- for National Agricultural Research (ISNAR) (Peterson,
view process; for an example, see the description of Net- Gijsbers, and Wilks 2003).
Map in IAP 2. OPAS was first tested in 1996–97 at the research insti-
tutes of the Council for Scientific and Industrial Research
Conducting expert surveys. The collection of (CSIR) in Ghana and later adapted and used by national
information from experts is useful for gathering valuable research organizations in Benin (Institut National des
information about an innovation system in a comparatively Recherches Agricoles du Bénin) and Uganda (National
short period. It allows the analyst to draw on the Agricultural Research Organisation) (Peterson, Gijsbers,
comprehensive knowledge gained by professionals who have and Wilks 2003, 8).
long experience in the AIS. The list of experts to interview In OPAS, organizational performance is defined as “the
can be derived during a mapping exercise (discussed ability of an organization to use its resources efficiently and
Agricultural research organizations use resources and feedback mechanisms are required at different levels to
inputs (funds, personnel, equipment, and facilities) to ensure that research organizations plan their resources
undertake their research operations in order to pro- efficiently and produce relevant and useful outputs. . . .
duce outputs (agricultural technologies and services) An underlying assumption in organizational perfor-
for the benefit of farmers, agro-industries, and other mance is driven by a number of critical management
users. The outcomes (or consequences) of adopting or factors, as indicated in the lower part of the diagram.
applying these outputs are measured by their effects, Through a periodic assessment of these factors, man-
positive or negative, on such factors as production agers can determine if appropriate mechanisms and
costs, yields, and use of natural resources. In this procedures are in place and functioning, and can take
sequence of events, which is illustrated in the upper steps to correct management deficiencies that con-
part of the diagram, performance assessment and tribute to poor (or lower) organizational performance.
1. Assessing context and organizational responsiveness 6. Ensuring quality and quantity of staff
2. Planning strategy and goals for the organization 7. Protecting organizational assets
3. Selecting program objectives and priorities 8. Coordinating and integrating internal functions
4. Planning research projects 9. Managing dissemination and partnerships
5. Managing projects, and maintaining research quality 10. Ensuring effective monitoring, evaluation and reporting
CRITICAL MANAGEMENT AREAS
MODULE 7: THEMATIC NOTE 2: METHODS FOR ORGANIZATIONAL ASSESSMENTS IN AGRICULTURAL INNOVATION SYSTEMS 557
Box 7.6 displays sample questions for human resource of the system and the competencies, roles, and ways of
management (management area 6 in figure B7.5 in box working that the wider system demands. Organizations use
7.5). As in the output assessment, scores can be applied to a suite of methods, referred to as “institutional and organi-
each question, which makes it possible to monitor changes zational learning” (see also module 1 and TN 4 in module
over time. 4) to enable this continuous adaptation and updating to
From an innovation systems perspective, it is useful to take place (box 7.7).
expand the OPAS approach and include indicators that cap-
ture the relation of the organization to be evaluated with
Surveys among the staff of organizations
other organizations in the AIS, both at the level of the out-
put assessment and the level of the management assessment. Another organizational assessment method, which can be
For example, at the output level, research organizations may combined with OPAS, is a survey of an organization’s staff
include scores for collaboration with agricultural extension members. These surveys are particularly useful in organiza-
and education organizations, and vice versa. At the manage- tions that have large numbers of field staff, such as public
ment level, critical management area 9 already refers to agricultural extension systems. They can provide in-depth
“managing dissemination and partnerships” (critical man- information about the organization’s capacity and staff
agement areas are listed in figure B7.5, box 7.5). Indicators incentives, but they need to be carefully planned, as they
in this area may be expanded to include all types of partners require genuine support from management. As in other
in the innovation system, as indicated in figure 7.1. Such surveys, the anonymity of the respondents has to be
data could then also be used as measurable indicators of the ensured, and interviewers have to be careful to create an
performance of different AIS members. These indicators atmosphere in which respondents are willing to talk freely
could also be considered in external evaluations, which may about their assessments, especially when sensitive issues are
increase the incentives for organizations not only to raised, such as issues of political interference. Moreover, it
improve their individual performance but to improve their is important to pre-test the survey instrument with a group
performance as a member of a wider innovation system. of respondents who reflect the diversity of the AIS. This
To reflect more of an innovation systems perspective, the step is important not only to test the suitability of the
OPAS can also be modified in the area of learning-based instrument but also to build confidence among staff. In
performance management. Successful organizations contin- designing the questionnaire, the trade-off between simplic-
uously update and reframe their relationships with the rest ity and capturing all relevant details must be considered.
Box 7.6 Sample Question Set for Assessing Human Resource Management Performance
■ To what extent does the organization maintain and ■ How effective are mechanisms to promote a good
update staff information (e.g., biodata, publications, working environment and high staff morale?
projects)? ■ How effective is the performance-evaluation process
■ To what extent does the organization plan and for research staff?
update its staffing, recruitment, and training ■ How effective is the performance-evaluation process
requirements? for nonresearch (management, administrative, and
■ How effectively are staffing, recruitment, and train- support) staff?
ing plans linked to program and project needs? ■ How effective are reward and sanction processes, in
■ How effective are selection procedures (for manage- terms of motivating staff?
ment, scientific, and support posts) in terms of ■ How effectively does the organization compete with
objectivity and transparency? the private sector in providing salaries and benefits
■ To what extent is training based on merit and on that attract and retain quality staff?
organization and program objectives?
Source: Reproduced directly from Peterson, Gijsbers, and Wilks 2003, 22.
Institutional or organizational learning is the deliber- tion activities. Shambu Prasad, Laxmi, and Wani dis-
ate and ongoing process in which information from cuss an “unusual coalition” between an international
research and evaluation activities and outcomes feeds research center (the International Crops Research
into a reflective analysis of what has worked and not Institute for the Semi-Arid Tropics) and a private
worked in an institution. In turn, the lessons from such Indian donor (Tata), in which the research center
reflective analysis inform decisions about future direc- established new institutional mechanisms, both
tions for the organization. Leadership, incentives, internal and external. The internal mechanisms
resources, and flexibility within the organization’s rou- involved new ways of organizing work among site
tines are required for this process to work. coordinators and activity coordinators who have to
The Institutional Learning and Change initiative seek input from each other. External mechanisms
defines a learning organization as an organization included a new steering committee as well as state
with a culture that supports this kind of analysis and and district committees with multiple stakeholders
change. The term “institution” is used instead of who were engaged in the use of new tools such as
“organization” when referring to the learning process actor-linkage mapping. Module 3 examines addi-
that takes place across organizations and among a tional cases of organizational learning and institu-
diverse set of people involved in research and evalua- tional change.
Source: Author; Watts et al. 2003; Shambu Prasad, Laxmi, and Wani 2006.
In designing staff surveys, it is also useful to take gender If a survey that includes agricultural households is
into account. For example, a survey may include specific planned for another purpose, it may be possible to include
questions on career opportunities and constraints for questions on the performance of the organization to be eval-
female staff. Moreover, the data for male and female uated and on other aspects of agricultural innovation. If a
respondents can be analyzed separately. Box 7.8 describes survey is planned specifically to collect information on the
the constraints to agricultural innovation that were identi- assessment of an organization in the AIS, it will be useful to
fied in a survey of agricultural extension agents in six dis- include questions on outcome indicators, such as the adop-
tricts of Ghana. (See IAP 3 for an example from Peru.) tion of innovations, as well as questions on household access
to the services provided by the organization (such as exten-
sion services) as well as household satisfaction with those ser-
Farm household surveys
vices. It may also be useful to include information on other
For organizations that deal directly with farmers, such as aspects of the innovation system, such as access to agricul-
agricultural extension organizations, surveys among tural inputs and complementary services as well as marketing
farmers—the clients of the organization—are essential opportunities. It will often be useful to collect such data sep-
for an ultimate assessment of organizational perfor- arately from male-headed households, female-headed house-
mance. At the same time, farm household surveys can holds, and female spouses in male-headed households.
provide important information about the performance of When farm household surveys are not possible and sec-
the AIS as a whole, which means that they can also form ondary data are limited, Participatory or Rapid Rural
an important component of a system-level assessment. Appraisal methods will be useful, since assessments of
Farm household surveys are the most expensive and time- organizations in the AIS, or of the system as a whole, should
consuming approach to collecting data about agricultural take the farmers’ perspective into account.
innovation, but they provide particularly relevant infor-
mation, especially if secondary data on farm households
POTENTIAL BENEFITS
that capture aspects of agricultural innovation are not
available. Box 7.8 describes how this assessment method The key challenge facing agricultural research institutes,
was used in Ghana. development organizations, and enterprises is to maintain
MODULE 7: THEMATIC NOTE 2: METHODS FOR ORGANIZATIONAL ASSESSMENTS IN AGRICULTURAL INNOVATION SYSTEMS 559
Box 7.8 Using Staff Surveys in Assessing Agricultural Extension Services in Six Districts of Ghana
To assess the performance of the organizations provid- The survey also showed that less than 12 percent of
ing agricultural extension services in Ghana, a team household heads and less than 6 percent of spouses
from the University of Ghana–Legon and the Interna- had adopted a new technology in the previous
tional Food Policy Research Institute carried out an two years. The implication is that considerable con-
assessment that involved surveys among agricultural straints prevent male and female farmers from
extension providers (70 interviewees) as well as agricul- innovating.
tural household heads (1,168) and their spouses (613). The survey among agricultural extension agents
The assessment showed that the public extension revealed that female extension agents were more effec-
service remained the main provider of extension infor- tive in reaching female farmers than male extension
mation (an important finding, given the crucial role of agents, but only 14 percent of extension agents were
advisory services in agricultural innovation). Only one women. Extension agents as a group identified the lack
respondent had received a visit from a nongovernment of transport and access to credit as major constraints
organization providing extension services, and non- on farmers (see the figure). An inadequate number of
governmental organizations organized only 4 percent extension staff was seen as the least important
of group meetings on extension. constraint.
The assessment also showed that female household The assessment revealed management problems as
heads as well as female spouses in male-headed house- well. Extension agents had limited incentives to per-
holds had very low access to agricultural extension ser- form, priorities and targets were not set, and training
vices even though women play an important role in opportunities were limited. The assessment identified
Ghana’s smallholder-based agriculture, and even entry points for interventions to improve the perfor-
though Ghana has a special program for Women in mance of this key organization in Ghana’s agricultural
Agricultural Development. innovation system.
their relevance and performance in the rapidly evolving ■ Commit resources to organizational assessment. The
agricultural sector. Organizational assessments provide a benefits of organizational assessments are realized only if
way of investigating the capacities and outcomes of an orga- they are conducted on a regular basis to maintain an
nization and identifying ways of strengthening different organization’s relevance in the AIS and to monitor
aspects of capacity to improve relevance and performance. progress over time. Conducting assessments regularly
These actions improve the effectiveness of both public and can be a considerable challenge, especially if organiza-
private investments in the development of organizations tions rely on external donors to fund this activity.
within an AIS. If similar assessment tools are used in differ- ■ Build local ownership for assessment. The sustainability
ent countries, additional benefits can be realized from cross- of an assessment regime can be improved by generating
country comparisons and benchmarking. buy-in from local organizations, such as the ministries in
charge of agriculture, science, and technology.
■ Build local capacity for assessment. The sustainability
POLICY ISSUES
of an assessment regime can also be improved by build-
Policy issues related to organizational assessments range ing and institutionalizing local capacity for conducting
from ensuring that assessments are properly resourced, that organizational assessments. It may also be useful to
local capacity to conduct assessments is developed and sus- involve regional networks of agricultural research
tained, that assessments reflect environmental and social organizations, such as the Forum for Agricultural
considerations, and that wide support develops for using Research in Africa (FARA), or regional economic com-
the results to improve performance. Policy responses to munities, such as the Economic Community of West
these concerns include the following: African States (ECOWAS), in the use of assessment
MODULE 7: THEMATIC NOTE 2: METHODS FOR ORGANIZATIONAL ASSESSMENTS IN AGRICULTURAL INNOVATION SYSTEMS 561
T H E M AT I C N O T E 3
562
Box 7.9 Foresighting to Transform Ireland’s Agrifood Sector (Teagasc 2030)
Teagasc, established in 1988, is the national body pro- 3. Energy Squeeze Fuels Agriculture. With oil produc-
viding integrated research, advisory, and training ser- tion declining steadily, agriculture is vital to global
vices to Ireland’s agriculture, food industry, and rural food and energy security.
communities. The Teagasc 2030 foresight exercise 4. A European Agriculture. This scenario addresses
(launched in 2006, ending in 2008 with an interna- the socioeconomic aspects of the rural economy and
tional foresight conference) sought to establish a the consequences of a European economy partly iso-
broadly shared vision for the Irish agrifood industry lated from the rest of the world by tariffs and
and rural economy in 2030. That vision would enable restricted trade.
Teagasc to meet science and technology needs in the 5. Sustainable and Rural. Sustainability, climate
short, medium, and long term. change, and environmental security have prece-
The foresighting process. Teagasc 2030 was overseen dence: The 2030 bioeconomy delivers competitive
by a steering committee of national and international agri-environmental products and services.
representatives from government, industry, and univer-
sities. The committee was assisted by a foresight panel Lessons and response. Based on the scenarios,
of experts from Teagasc, other government depart- strategic and operational responses emerged:
ments, state bodies, universities, farming and rural
organizations, and food industries. A foresight working ■ For the sector: Promote knowledge generation and
group from Teagasc’s research, advisory, and training dissemination, learning, and problem solving. Policy
directorates completed background papers on drivers drivers at the European Union and national level
of change and possible future scenarios and handled create new markets and opportunities.
day-to-day running of the project. The knowledge base ■ For farms, firms, and policy makers: Adapt quickly
was developed in workshops, other events, and consul- to changing circumstances, generate added value,
tations with stakeholders and international experts. and support innovation.
The scenarios. Involving elements of imagination ■ For Teagasc: Address the new challenges and
but drawing on likely developments in the agrifood needs facing the Irish agrifood knowledge system.
sector, rural economy, and world over the next 20 years, Excellence in supporting science-based innova-
Teagasc 2030 developed five scenarios and described tion will depend on building organizational capa-
their effects on the organization: bilities in leadership, partnership, and accounta-
bility. Teagasc will establish a new technology
1. Ireland—The Food Island. The value-added food transfer service for food companies, strengthen
sector in 2030 has many new elements such as con- investment in biosciences, enhance the depth of
vergence of the food and pharmaceutical industries. its scientific effort, and continue upgrading its
2. Globally Competitive Farming. In 2030, a diversi- educational programs to the highest international
fied agrifood sector competitively produces milk, standards.
beef/sheep, and tillage crops.
The next sections of this note describe elements of the Foresighting process
foresighting process, how to select an appropriate foresight-
Foresighting is often spearheaded by individual organiza-
ing tool, the use of complementary tools, and the develop-
tions or collaborating groups who have a stake within the
ment of alternative scenarios. They conclude with examples
innovation system (for example, by strategic partnerships
of how these processes unfolded in agricultural foresighting
or innovation councils, among others). The organization
in Ireland (box 7.9) and Jamaica (box 7.10).
Objective and process. Jamaica’s sugar industry was the would depend on how the change process was
largest employer of agricultural labor and used the most managed.
(and much of the best) arable land, but it depended on a 3. Multi-objective optimization demonstrated a
European Union trade regime that was being phased possible solution that could achieve a range of
out. Jamaican sugar was not competitive and would have developmental goals. Extensive, low-value agricul-
to undergo profound restructuring to survive. A research ture would shift to intensive, high-value agricul-
program at the University of the West Indies attempted ture, increasing revenue, profits, and skill transfer
to address these issues through linked foresight exercises while reducing environmental impact.
involving government, academics, and industry from
2003 to 2010. Following a 2003 Delphi study that identi- Outcomes and lessons. Following the withdrawal of
fied drivers of change and a 2004 foresight workshop to Brazil’s plan to invest in Jamaica’s ethanol industry and
identify land-use scenarios, by 2009 public and private an even more acute budgetary crisis in 2010–11, the Gov-
partners had developed an integrated assessment that ernment of Jamaica chose to sell the sugar industry to a
generated more accurate predictions than official fore- foreign company. This outcome illustrates how pressing
casts. An integrated policy development project in short-term needs, in conjunction with international
2010–11 identified options for improved policies, using uncertainties and domestic politics, often entail the loss
geographic information system mapping as the basis for of strategic direction and potential future prosperity.
a national spatial plan. The cost of the seven years of The foresighting exercises resulted in three significant
foresighting was an estimated US$150,000. advances. First, the identification of future scenarios
The scenarios. In early 2008, a diversification plan helped to establish that better future outcomes were pos-
involving privatization and the manufacture of ethanol sible. Second, the process helped to identify the weak-
presented three scenarios: nesses and vulnerabilities in current policies. Third, the
dialogue between officials, academics, and industry rep-
1. Diversification would succeed. The area used to resentatives was genuinely useful. Yet the exercises could
produce cane for ethanol would increase signifi- not resolve deep core weaknesses in governance. Most
cantly. The contribution to mitigating climate decisions are still taken on a sectoral basis without con-
change would offset probable negative consequences sidering cross-sectoral effects. Ministry officials partici-
for river and coastal water quality. pated in the debates, but not ministers. No sufficiently
2. Diversification would fail. Much land would powerful group exists to address the large disparities in
become available for other purposes (housing, wealth, influence, and power in Jamaica and arrive at an
tourism, forestry) or revert to scrub. Some options optimal outcome. Vested interests continue to dominate
would be environmentally positive, but much the informal networks where key decisions are made.
Source: Author.
initiating the foresighting exercise does not necessarily facil- Rutten (2000) explains that there are no blueprints for
itate the process. A common procedure is to establish a organizing a foresighting exercise. The process itself has
steering committee for the exercise and a foresight working four key stages, however:
group to manage implementation. This approach was used
for a foresighting exercise for agriculture in Ireland (box 1. Bring together a wide range of information resources
7.9). For the Jamaican sugar industry, a team of foresight and key stakeholders to discuss and define the core
experts was contracted to help users define the steps and objective(s) of the foresighting exercise.
tools in a foresighting exercise to meet the needs of different 2. Identify and engage a wider group of stakeholders (typi-
users (in general, users might include firms, industry asso- cally involving both public and private sector organiza-
ciations, multinationals, or governments). tions) in the process.
People involved Experts and decision makers; 10–20 Experts (different disciplines); 30–100⫹ Experts and stakeholders; 20–50
and numbers
Type of process 1 day introduction, 1 day run-time, monitoring Coordinated, iterative discussion of expert judgments Facilitated discussion, present “what-if” challenges and
and implementation on defined issues; responses are kept anonymous but counterfactuals, 3 months’ preparation, 2 days’ run-
fed back to group, clarified, ranked and reevaluated in time; a large national exercise will require 1 year’s
a minimum of 3 rounds, 3 months’ preparation, preparation, 2 years’ run-time
3 months’ run-time
Role of foresight Introduce concept Coordinate, derive scenarios Facilitate, challenge, manage process
expert
Key challenges Getting experts and decision makers to engage, Identifying and recruiting the panels, managing the Identifying and recruiting key stakeholders, facilitating
overcoming organizational inertia process the process, maintaining momentum
Key questions to – What are our core technologies? – What is the issue to be addressed? – What are the key assumptions underlying this plan?
guide information – Could we use them more effectively? – What is important about the issue? – What is the “worst case” situation?
gathering / – Could an innovation make our technology – What are possible future scenarios for this issue? – What if this plan doesn’t work?
analysis obsolete? How quickly could we adapt? – What views create tensions on the issue? – What is the contingency plan?
– What are the trends in our sector? Could a
new competitor or a new market emerge?
– What is our competitive advantage?
– What are the priorities for maintaining,
upgrading, or replacing our core
technologies?
– What resources will be required to update
our technologies and upgrade our skills?
Examples Institute of Grocery Distribution (UK) used Rikkonen, Kaivo-oja, and Aakkula (2006) described the De Lattre-Gasquet (2006) examined three case studies
roadmapping to identify food production use of Delphi expert panels in the scenario-based on the use of foresighting in agricultural research
issues that could affect the food chain and to strategic planning of agriculture in Finland; Stewman and development priorities: one at the commodity
facilitate a more considered introduction of and Lincoln (1981) conducted a Delphi study on the level (cocoa), one at the level of a national system
new technologies in the future on behalf of likely timeframe for expected breakthroughs in the (Dutch agriculture), and one at the level of an
its members, who were major retailers and biological sciences from recombinant DNA (RDNA) organization (the International Food Policy Research
food and agricultural research institutes (IGD research, with emphasis on basic knowledge and three Institute’s 2020 Vision)
2003) applied areas: agriculture, industry, and medicine
Source: Author.
exercise, scenarios are updated with further assessments of institutional, and political barriers; providing sufficient
the environment, drivers of change, and likely interactions resources to implement the results of foresighting exercises;
between system variables in the progression from current and ensuring that policy change can be sustained.
conditions to a future state. Boxes 7.9 and 7.10 provide
examples of scenarios developed within wider foresighting
Reduce the risk of costly policy failures
in Ireland and Jamaica; IAPs 4 and 5 provide examples from
India and Chile. For poor and developing countries, the primary policy issue
in foresighting and strategic planning is that these exercises
can reduce the risk of policy failures with high human and
POTENTIAL BENEFITS
developmental costs. One of the most important differences
Attempts to prepare for the future can generate a range of between rich and poor countries is that the cost of a policy
benefits. The general advantages of a strategic planning failure in a rich country is usually in terms of its opportu-
process are that it can help any organization assess its threats nity cost—the loss of the wealth that might have otherwise
and opportunities, clarify the issues, determine its priorities, been generated. Although poor and developing countries
and integrate all of the important variables into a single have a greater need to prepare for the future, most have just
coherent plan. This is true irrespective of the quality of the a small fraction of the capacity (the skills, knowledge base,
plan that results. A strategic planning process also helps to access to information networks, and so on) that rich coun-
identify any weaknesses (such as insufficient capital, inade- tries deploy on such exercises. For this reason, it is excep-
quate technical capacity, inappropriate management, or tionally important for poor countries to use policy tools
gaps in the supply chain) that will have to be addressed and that are effective, robust, and cost-effective.
thereby clarifies the priorities for borrowing and invest-
ment, hiring and firing, and R&D. Address barriers to progress and provide
The advantage of future-oriented strategic planning is sufficient resources for foresighting
that it facilitates more objective consideration of today’s real
problems. The foresight exercises may depoliticize and Strategies for change, including the use of foresighting, usu-
decontextualize the problems, which then allow the prob- ally have to address issues such as institutional culture and
lems to be addressed more realistically. Thinking about local politics. As the example of the Jamaican sugar industry
forces that will shape the future, such as demographic suggests, it is often important to address the political, cul-
trends, can indicate the future pattern of market demand tural, or economic factors and institutional policies that
(for example, for food, energy, water, and housing) and the seriously impede progress, because development trajecto-
need for investments in new technologies to meet that ries can become locked in by the real or perceived cost of
demand (see, for example, Clayton and Staple-Ebanks developing alternatives, the reluctance to write off sunk
2002). A foresight approach, using techniques such as sce- expenditures, or a lack of relevant skills.
nario planning and integrated assessment to incorporate Managing in the present while preparing for the future
social, economic, and environmental factors, can ultimately often involves gathering new sources of information, estab-
identify and present the best available, optimal, or even win- lishing where and when change is needed, building a con-
win outcomes, which different organizations and interest sensus, and mobilizing people and institutions around the
groups may find acceptable. Finally, many planning exer- new strategy. Commitment, time, and financial resources
cises are flawed because of information asymmetries. A pos- are essential to support foresighting, especially the imple-
sible solution to this problem is a user requirements capture mentation phase.
process, which can be built into a strategic planning exer-
cise. This process involves two or three iterations in which
users are shown possible outcomes, give their feedback, and Link foresighting with institutional change
to ensure sustainability
refine the model.
A policy issue especially relevant to innovation systems is
that innovation cannot usually be imposed. A solution that
POLICY ISSUES
is not widely understood, or which cannot be easily assimi-
The chief policy issues related to foresighting are related to lated or at least accommodated by local cultural and politi-
reducing the risk of failed policies; addressing cultural, cal systems, generally will not gain wide support and will fail
569
these networks can work effectively. Sometimes it involves are best deployed to meet the demands of this type of inter-
stimulating changes in formal institutions, such as land vention. Process-oriented monitoring methods have been
tenure arrangements, regulatory regimes, pricing policies, around for some time, and innovation system interventions
or the roles of certain organizations. This process, in turn, might need to rediscover and adapt those methods rather
requires interventions to facilitate negotiations about than reinvent them. Boxes 7.11 and 7.12 illustrate two such
change between different stakeholders. Both types of insti- methods: Rapid Appraisal of Agricultural Knowledge Sys-
tutional change need to be tracked. tems (RAAKS) and Outcome Mapping.
Because the environments in which institutional changes
must take place have highly specific features, the process of
Principles for selecting monitoring methods
stimulating change can rarely follow a set plan. Instead an
experimental approach is needed. This means that interven- Several principles from good practice stand out and make a
tions must be learning based and reflexive, which is why useful guide for selecting monitoring methods from among
monitoring is so critical: It assumes the role of helping to the many that are being adapted to the learning orientation
determine whether the intervention’s chosen approach is of innovation system interventions. These principles are
resulting in desirable outcomes and whether the interven- particularly useful at a time when experience of monitoring
tion needs to respond to other (often unexpected) changes innovation system interventions remains limited. They
in its environment. include the following:
Since the nature of institutional bottlenecks may become
apparent only during the course of an intervention, indica- ■ Balance accountability and learning. Aside from col-
tors of performance will need to be developed on a case-by- lecting the data required for reporting to the investor,
case basis and constantly revised. Recording unexpected implementers will need to collect monitoring data that
institutional changes is an additional way of alerting an will help them manage the performance of their inter-
intervention’s investor that progress is being made. vention. All of the methods summarized in table 7.8 sup-
Interventions also will need to monitor progress toward port learning-based monitoring for interventions.
final social, economic, and environmental impacts. Such mon- ■ Make assumptions explicit, and revisit theories of
itoring implies a set of assumptions about the relationship change. The greater learning orientation of monitoring
between these institutional outcomes and final impacts. Inter- implies a need to make assumptions about change
ventions need to test these assumptions by monitoring out- processes explicit in planning interventions and a need
comes farther down the results chain toward final impact to to revisit and test those assumptions. Previously practi-
verify whether the institutional changes that have been tioners tended to regard such assumptions as a given.
enacted are likely to lay the foundation for those final impacts. By exploring and responding to the validity of the
This monitoring provides information that can feed into assumptions on which an intervention is based, how-
adjustments in the intervention; it also acts as a means of ever, implementers can improve the intervention’s
reporting on progress and remaining accountable to investors. effectiveness. All of the learning-based approaches in
The monitoring of innovation system interventions also table 7.8 involve testing underlying assumptions. If an
emphasizes the need to make information accessible to all intervention’s theory of change must be altered, it is
stakeholders involved. Information collection approaches important that the investor be made aware of the
will need to be inclusive and transparent, and information change in accountability reporting.
management systems must provide open access to all, not ■ Incorporate different stakeholders’ perspectives. The
just those involved in designing monitoring arrangements. shift to address the question of how things happened and
to track unexpected outcomes requires a much stronger
emphasis on widening the scope of participation in
INVESTMENT NEEDED
monitoring. Wider participation helps to capture the
Practitioners have become better equipped to manage the perspectives of the poor (and other stakeholders) on the
performance of learning-based, institutional adaptation actual effects of an intervention (social, economic, and
processes and the complex impact chains that are likely to institutional). It also makes it possible to develop a fuller
be encountered in innovation system interventions. The understanding of the process through which those effects
challenge of monitoring innovation system interventions is came about. Different stakeholders may have different
therefore to learn how current good practice and principles interpretations of cause and effect. It is now good
practice in monitoring to recognize these divergent per- changes in yields or quantities of fertilizer sold), although
ceptions. This principle extends to the need to draw on these indicators contain their own assumptions about the
perspectives from a wider range of stakeholders in devel- causal chain to impact. Data collection techniques for
oping the theory of change that will guide an interven- tracking outcomes include small sample surveys, participa-
tion’s implementation and learning. Box 7.13 illustrates tory appraisal techniques, and longitudinal household case
one approach for widening participation in monitoring; studies. It is important to keep these activities in propor-
others are included in table 7.8. tion to the task of managing the intervention, however.
■ Mixed methods. Expanding views of monitoring require Costly and time-consuming baseline surveys do not lend
quantitative methods (to measure outcomes) to be com- themselves to learning-based interventions for the simple
bined with qualitative methods (to understand and learn reason that they do not generate information quickly
from institutional and process changes). To understand enough to inform how an intervention is managed (see
institutional and process changes, and to establish their the examples from IAPs 6 and 7).
causal links to outcomes and impact, monitoring will
need to place much greater emphasis on qualitative meth-
ods such as Innovation and Institutional Histories (box
Available monitoring methods
7.14) or Causal Process Tracing (table 7.8). Rather than
measuring levels of income and social variables, it may be Table 7.8 presents the strengths and weaknesses of a range
more appropriate to use proxy indicators of changes that of monitoring methods that have relevance to innovation
will lead to these impacts in the future (for example, system interventions. These methods have a number of
characteristics, discussed below, that make them different innovation system interventions, in which experimenta-
from conventional milestone-based monitoring techniques. tion and action learning are the main routes to success.
The discussion provides a flavor of the new approaches to 2. Inquisitive. Recognition of the importance of unexpected
monitoring that will be seen in the coming years in innova- outcomes and the need to record and learn from them.
tion system interventions. This perspective is particularly useful in innovation system
The value added by the new monitoring techniques interventions, because their process-driven nature can
reviewed in table 7.8, compared to conventional milestone- lead to unanticipated outcomes that have significance.
based techniques, may be summarized as follows: 3. Communicative and accessible. Monitoring approaches
as ways of sharing results and lessons and building a joint
1. Explanatory. A focus on reconstructing events in an understanding of events that have taken place. Making
attempt to understand why a particular course of action information accessible to all stakeholders is important in
led to the outcomes observed or failed to achieve innovation systems, because it is a way that organizations
expected outcomes. This understanding is important for learn and improve their performance.
Impact Pathway especially in complex in constructing impact pathways. implemented to gauge its weaknesses. (2003)
Analysis situations where innovation is – Includes both (1) causal chain of activities, outputs,
seen as emerging from a and outcomes that shed light on how an
network. intervention achieves its goals and (2) network maps
that show evolving relationships between
participants.
– Underlines the fact that innovations emerge from a
network and not a linear “pipeline.”
– Promotes reflection, self-evaluation, and learning.
– Provides a framework for carrying out action-
research.
Causal Process – Well suited for complex and – Places data and theory in close proximity. One – Regarded as not very strong for wider generalization George and
Tracing long-term interventions with quickly sees what works and what does not in an but more suited to narrow specification of the reach Bennett (2005);
systems learning goals. intervention’s lifetime. of causal propositions. CoS-SIS (2009);
– Takes a great deal of time. Walters and
– Not conducive to parsimonious theory and leads to Vayda (2009)
partial, middle-range theory. It is easy to miss causal
complexity.
– Easy to lose sight of the broader context.
Reflexive – Best suited for long-term – Mechanisms built into the intervention permit all – Works in theory for long-term interventions van Mierlo et al.
Monitoring in interventions with systems participants to contribute to learning by reflecting oriented to systems learning, but most development (2010)
Action learning built into their on the relationships between key aspects and interventions do not have the luxury of long-term
mandates. ambitions of the intervention as well as the practices learning as the sole goal and need to demonstrate
and institutions in which they are embedded. (developmental) impacts throughout the life of the
– Monitoring is integral to the intervention, so insights intervention.
gained are built into and experimented with in new – A coherent set of tools and principles, but in
activities. essence the approach is still being developed and
– Encourages investigators to look for creative not in widespread use, so experiences from the field
solutions. are few.
– Reflexive monitoring in an intervention ensures that
those involved develop new ways of working to
keep up with changes in the intervention’s
institutional context.
Source: Authors.
575
Box 7.13 Most Significant Change: A Form of Participatory Monitoring and Evaluation
Most Significant Change (MSC) is a form of participa- teams of people to focus their attention on the inter-
tory monitoring and evaluation that involves many vention’s impact.
participants in an intervention to decide what kinds of
changes need to be recorded and to analyze the infor- Strengths
mation collected, which can be used to assess the inter- ■ Enhances capacities of the stakeholders (at orga-
vention’s performance and impact. The approach nizational and individual levels) and fosters
focuses on collecting significant change stories that learning.
emerge from the field. Significant changes can include ■ Helps identify unexpected changes or outcomes.
changes in people’s lives and participation levels as well ■ Processes large amounts of information, from which
as changes in the sustainability of people’s institutions negative and positive changes are deduced.
and their activities. ■ More accessible than traditional techniques for
Together, stakeholders decide what is going to be monitoring and evaluation, and requires no specific
monitored. MSC process managers identify broad skills to participate (everyone can tell a story).
domains of change that they assume to be important
and that should be evaluated. These domains of change Weaknesses
are deliberately wide and inclusive. Stakeholders iden- ■ The approach is a subjective expression of the values
tify significant changes in a particular domain of and concerns of the stakeholders designated to
change and justify why they think these changes are the select the stories.
most significant. The stories are analyzed by stakehold-
ers at every level (field, organization, investor, and so Best use or application
on). This approach is a fairly simple way to make sense ■ To make sense of an intervention’s impact and foster
of a large amount of information. The central aspect of learning.
the technique is not the stories themselves but the ■ To identify the most significant changes that have
deliberations and dialogues surrounding their selec- occurred as a result of an intervention, with the help
tion. If implemented successfully, MSC causes whole of all primary stakeholders.
Source: Kammili 2011; Davies 1996; Davies and Dart 2005.
4. Inclusive. A focus on the inclusiveness of the monitoring performance and achieving results is the responsibility
process. Inclusiveness can help diffuse tensions around of all those involved.
the change process associated with innovation system 7. Tailor-made. A number of methods involve the use of
interventions. It is also a way of helping to build the link- institutional change indicators. The emphasis is on devel-
ages that these types of interventions need. oping these indicators based on the nature of the inter-
5. Rapid. These methods generate information quickly. vention being monitored. Approaches accommodate the
This consideration is important for innovation system fact that indicators of performance are a moving target
interventions, which must be nimble in responding to and need to be revised constantly. Tailoring indicators in
unfolding events. this way is particularly suitable to the learning-based
6. Nonexpert/open access. Methods are designed to be characteristic of innovation system interventions, in
used by all those involved in interventions—that is, for which the specific nature of the institutional change being
self-assessment—rather than by monitoring experts. sought rarely can be predicted, aside from generic terms
These methods are also designed to promote access to such as the degree of participation, the strengthening
the information generated. Open access is important in of links between stakeholders, or the inclusiveness of
innovation system interventions, because managing decision-making processes.
The Institutional History method helps people involved change. These experiences can then be scaled out by
in the innovation process construct a shared under- disseminating the findings of the innovation
standing of how innovation has occurred. Institutional process.
histories are narratives written jointly by people who
have been involved in an innovation. The history records Strengths
changes in institutional arrangements (new ways of ■ Fosters discussion among stakeholders and leads to
working) that evolve over time and facilitate the achieve- reflection and learning.
ment of goals. ■ Helps build a shared vision of the future.
This approach highlights the importance of insti-
tutional innovations. The main idea behind these his-
Weaknesses
tories is to introduce institutional factors into the
legitimate narrative of success and failure in research ■ Written accounts are based on recollections and
standing of roles and relationships, inquire into what analyze the information.
triggers or hinders successful innovations, and reflect ■ It usually takes a long time for significant lessons to
POTENTIAL BENEFITS OF MONITORING evaluation and about who is responsible for each task causes
APPROACHES monitoring systems to underperform and results in badly
executed evaluations (see IAPs 6 and 7). These wasted
In common with all interventions, well-executed monitor-
resources lead to ineffective interventions and prevent
ing arrangements are central to the performance of innova-
investors from learning vital lessons for designing future
tion system interventions. Investments in developing such
interventions. This issue is addressed easily by simply clari-
arrangements will strengthen the effectiveness of investments
fying roles, responsibilities, and time frames for the separate
in achieving developmental goals and, in doing so, improve
tasks of monitoring and evaluation.
value for money.
Strengthen the capacity to implement learning-based per-
formance management approaches. Within the agricultural
research and innovation profession such expertise is
POLICY ISSUES RELATED TO MONITORING
limited. Although these skills are better developed in the
A number of policy issues are important for ensuring that general development and rural development communities,
monitoring delivers some of the benefits that have just been particularly in the nongovernmental sector, training in these
described. methods is needed urgently, because monitoring is the
A primary concern is to improve the demarcation of lynchpin of effective innovation system interventions.
responsibilities for monitoring and evaluation. A lack of clar- As a central performance management tool, monitoring
ity on the part of investors as well as intervention imple- must be integrated and mainstreamed in innovation system
menters about the different purposes of monitoring and interventions rather than exist outside of them. Isolating
Institutional change encompasses a very wide range of ■ Changes in the poverty relevance of actions and
changes, from new ways of doing things to formal policy interventions.
changes. Developing indicators can be difficult, because ■ Market-related institutional change.
decisions need to be made about what types of institu- ■ New types of organizations playing new types of
tional change are important to help understand the roles.
progress of a particular innovation system intervention. ■ Old types of organizations playing new roles.
At the same time, it is important to capture the range of ■ New forms of rural credit.
changes that an intervention is helping to stimulate, ■ Changes in agricultural research practice.
some of which may not be expected. This last objective is ■ Changes in the policy-making process.
important when reporting outcomes to investors. The ■ New network configurations.
DFID-funded Research Into Use program (see www ■ Formal policy changes.
.researchintouse.com) faced this challenge. The program ■ Changes in donor practice.
recognized that institutional change would be the main
route through which it would achieve long-term This practice helped identify categories of institu-
impacts, but it had no systematic mechanism for captur- tional change where limited progress was being
ing evidence of those changes, nor did it have an accessi- made—changes in donor practice and changes in the
ble way of reporting institutional changes to its investor policy-making process. It also helped to improve com-
other than through lengthy case studies. For this reason, munication of the program’s progress in stimulating
the program’s Central Research Team developed an institutional change, which had previously been diffi-
inventory of all institutional changes observed (IAP 7) cult for an external audience to see.
and categorized them as follows:
580
in which the intervention continuously tests the assump- approaches relied on (1) technology adoption studies, (2)
tions on which it is based (its intervention logic). Over the investigation of economic surplus generated by research and
course of the intervention, investors’ expectations of what computation of rates of return, and (3) economic studies of
the intervention is going to achieve, and how it will do so, the contribution of research to impact. While these
often need to evolve significantly. For example, an interven- approaches are powerful (see Evenson, Waggoner, and Rut-
tion in Sierra Leone (IAP 1) designed to help put agricultural tan 1979; Pardey and Beintema 2001; Alston et al. 1995), a
research results into use began by trying to establish innova- persistent critique is that they have weak diagnostic value.
tion platforms around commodity chains. It soon found that Their inability to elucidate underlying causal processes and
the main bottlenecks to research use and innovation were account for institutional change are particular weaknesses
policy issues in the enabling environment for innovation. (Hall et al. 2003; Horton and Mackay 2003; Watts et al. 2003).
In contrast, the wider development evaluation tradition
is well equipped to deal with the investigation of causal links
Distinguishing impact, shared impacts, unexpected
between dynamic theories of change and impacts of the sort
impacts, and unrelated impacts
likely to be encountered in innovation system interventions
By definition, innovation system interventions operate (see, for example, the guidance on impact evaluations in
within an often complex web of activity. Much of this wider NONIE, Leeuw, and Vaessen 2009). The challenge is mainly
set of events is beyond the control and influence of the to understand how current good practice in the wider devel-
intervention, but the performance of the intervention itself opment evaluation community can be more widely
is often greatly influenced by this context. While the imme- deployed in the evaluation of innovation system interven-
diate outcomes of an intervention—for example, the estab- tions. Of particular relevance is the recent focus on evalua-
lishment of innovation platforms (see module 4, particu- tions that link the assessment of outcomes and impacts
larly TN 1)—can be evaluated easily, it is more difficult to (what were the end results) with learning (what processes
attribute impacts to those platforms. The causal chain from and practices brought about those results) (Savedoff,
intervention to impact is often complex, may take time to Levine, and Birdsall 2006; White 2009a).
mature, and might be geographically removed from the
point of intervention. As a result, tracing and attributing
Principles for evaluation
impact are difficult.
In India, for example, the Fodder Innovation Project (see Emerging from this trend is a set of principles that practi-
IAP 6) introduced an institutional change, in which an tioners can draw upon in evaluating innovation system
NGO helped the National Department of Animal Hus- interventions. These are now general principles for all types
bandry use its resources to hold livestock health camps in of evaluations.
villages. Can the resulting impact be attributed solely to the
intervention that supported the NGO to explore institu- ■ Situational responsiveness influences the design of the
tional change? In Nigeria, the Fodder Innovation Project led evaluation. Referred to as “situational responsiveness,”
to an unexpected outcome: An NGO and the local livestock the key principle involves matching the design to the
research institute collaborated on animal disease surveil- needs, constraints, and opportunities of the particular sit-
lance, an activity that was outside the scope of the project’s uation rather than one particular method. The applica-
mandate to focus on fodder but was likely to lead to impor- tion of this principle rests on understanding the charac-
tant future impacts. Finally, since complex impact chains teristics of an intervention or parts of it and determining
can often mask underlying causal processes, there is the where the underlying change processes are simple, com-
danger that impacts may be attributed to an intervention plicated, or complex.
when in fact they arose from unrelated events. ■ Seek a stronger learning orientation in impact evalua-
tion. A number of new initiatives—notably the Interna-
tional Initiative for Impact Evaluation (3IE) but also
INVESTMENT NEEDED
others—have stressed the need to combine accountabil-
Viewed from the perspective of traditional approaches to ity and learning objectives. Learning is important for
assessing the impacts of agricultural research investments identifying what worked or did not work and why, and
(see box 7.16), designing approaches for evaluating innova- this information is valuable for designing future invest-
tion system interventions seems daunting. Traditional ments. While this perspective emphasizes the need for
rigor in measuring impact, it also explicitly acknowl- ticular intervention—the counterfactual. The best way to
edges the need to test interventions’ assumptions and achieve this goal is still a point of debate (see box 7.17 for
theories of change (White 2009a). For details, see the details on the challenges involved). Box 7.18 provides an
example of Theory-Based Impact Evaluation in box 7.19. example of Propensity Score Matching, one approach to
■ Make assumptions explicit and revisit theories of developing a counterfactual case.
change. Adopting a greater learning orientation in eval- ■ Mixed methods. Quantitative methods (to measure
uation means making assumptions about change impacts) clearly are central to investigating impacts,
processes explicit when planning interventions and but they must be complemented by a range of qualita-
revisiting and testing those assumptions at the time of tive methods (to understand and learn from institu-
evaluation. By exploring the validity of the assumptions, tional and process changes) that can help to understand
evaluators can learn critical lessons for designing future the context in which the intervention took place and
interventions (box 7.19). the process to which the intervention contributed that
■ Use counterfactuals in impact evaluation. A stronger brought about those impacts. Practitioners can draw
learning orientation has also been accompanied by upon a very wide array of qualitative methods, and the
demands for greater rigor in the quantitative methods combination of methods selected depends consider-
used to measure impacts, as well as for methods that bet- ably on the nature of the intervention and the precise
ter establish what would have happened without a par- demands of evaluation functions. (For a discussion of
The origins of counterfactuals can be traced to scien- out” comparisons appear more promising for captur-
tific experiments conducted with a control, the classic ing the counterfactual case, particularly when used in
example being the randomized control trials used in conjunction with statistical techniques that account
drug testing. This approach poses ethical and opera- for differences between the starting conditions in
tional problems that make it impractical for develop- comparator sites.
ment interventions. The establishment of counterfactuals remains an
Another approach, “before” and “after” compar- evolving science for the evaluation community. Despite
isons, struggles to account for changes that would the challenges, mechanisms for establishing what
have happened despite the intervention. Variants of would have happened in the absence of an intervention
this approach have been developed, however, which should be built into the overall design of interventions
compare the effects of an intervention that starts in and the monitoring and evaluation arrangements that
different places at different times. “With” and “with- are put into place for them.
Source: Authors.
Theory-based Impact Evaluation (TBIE) is advocated consider in the design are the possibility of spillover
for understanding why an intervention has or has not effects (the control is affected by the intervention)
had an impact. The approach calls for examining and and contagion or contamination (the control is
mapping the causal chain of an intervention—from affected by other interventions).
inputs to outcomes and impact—to test the underlying 5. Conduct a rigorous factual analysis. The counter-
assumptions and shed light on the “why” question. factual analysis of impact needs to be supplemented
TBIE involves six steps: by rigorous factual analysis of various kinds, given
that many links in the causal chain are based on fac-
1. Map the causal chain. The causal chain links inputs tual analysis. Targeting analysis is the most common
to outcomes and impacts. It is the intervention’s the- form of factual analysis: Who benefits from the inter-
ory of change, which explains how the intervention is vention? To the extent that there is a defined target
expected to have its intended impact. Testing assump- group, then what is the extent of the targeting errors?
tions is central to a theory-based approach. One crit- Such errors can be quantified and their source iden-
icism of the causal chain approach is that it is static tified. Factual analysis often highlights a crucial
and does not account for an intervention’s ability to break in the causal chain and explains low impact.
adapt and evolve—an important consideration for 6. Use mixed methods. A major step toward mixed
innovation system interventions. This criticism is methods is to increase the use of rigorous quantita-
addressed in TBIE by suggesting that the intervention tive methods in qualitative studies (quantitative
theory should reflect the new design, and the evalua- analysis informed by qualitative insight) or the use
tion should document the learning process that of qualitative data in quantitative studies. Without
resulted in the new design. In this way, the interven- qualitative methods, the danger is that researchers
tion theory remains dynamic. Another criticism is will conduct impact studies with no exposure at all
that it misses unintended consequences, which is to the intervention.
addressed by identifying those consequences through
Strengths
a careful application of intervention theory, fed by
thorough preliminary fieldwork, and using the result- ■ The combination of counterfactual impact esti-
ing information to develop new theories of change. mates with detailed exploration of causal links and
2. Understand the context. Clearly, understanding the theories of change has the potential to provide com-
context is crucial to understanding its impact and in pelling lessons and evidence.
designing the evaluation, as context influences how ■ Lessons gleaned from TBIE are valuable in trying to
the causal chain plays out. understand what works in development.
3. Anticipate heterogeneity. Understanding the con- ■ Far more valuable lessons for policy are obtained
text also makes it possible to design the evaluation through the insights on what doesn’t work in inter-
to anticipate possible variation in impacts (arising ventions.
from how the intervention is designed, the charac- Weaknesses
teristics of the beneficiaries, varied socioeconomic ■ Not yet in widespread use, so experiences are
settings, and so on). limited.
4. Conduct a rigorous evaluation of impact using a ■ Construction of a robust counterfactual can be
credible counterfactual. The appropriate counter- challenging.
factual is most usually defined with reference to a ■ Data-intensive.
control group, which has to be identified in a way ■ Expensive, although good value for money if well
that avoids selection bias, meaning the use of either executed.
experimental or quasi-experimental approaches.
Panel data help to strengthen the design, so baselines Best use or application
are encouraged. Where they are not available, they ■ An evaluation tool best suited to investigating
might be recreated using existing data sets or recall. impacts and undertaking policy learning in large-
In addition to selection bias, important issues to scale interventions.
Source: White 2009b and authors.
so forth) that determine the – Individual focus can translate into organizational
organization’s character. development.
– Not hierarchical.
Benchmarking – More than just evaluating – Can be useful in tracking macro-level progress and to help – Methodologies still being developed. CPR, CRISP, and
Innovation individual interventions. Can target subsectors, sectors, and countries for investment in LINK (2008);
Capacity help investors benchmark the capacity strengthening or for investments that require Kraemer-Mbula
performance of sectors and certain levels of capacity as a precondition. (2012
subsectors in terms of capacity forthcoming);
built for innovation. Spielman and
Birner (2008)
Source: Authors.
587
■ Acting on evaluation lessons. Investors must be willing The principles outlined in this module and the evalua-
to act upon the lessons that emerge from evaluations of tion approaches summarized in table 7.9 are well known to
their innovation system interventions. This can be easier professional evaluators in the wider development evalua-
said than done when lessons point investors away from tion community. What is important is that investors com-
traditional approaches and the interests of stakeholders mission evaluations that embody these principles and select
associated with them. One approach that investors evaluators with experience in applying them. In the short
increasingly use to bolster their confidence in emerging term, they probably must look beyond the pool of evalua-
lessons is to use systematic reviews of similar projects to tors who have undertaken traditional assessments of the
test key assumptions about suggested ways forward. impact of agricultural research investments.
589
The participants used innovation system mapping tech- members and mandated to manage the affairs of the part-
niques to visualize the main elements and actors in the AIS nership), and a secretariat (responsible for day-to-day oper-
and the strength of the linkages and knowledge flows ations, coordination, and administration). In summary, the
between them. More specifically, they assessed and mapped association’s defining features are that it is self-governing,
knowledge flows between elements of the system and the membership-based and has a broad, representative mem-
factors influencing these flows in relation to rural and non- bership; it is financed through subscriptions; it receives
rural livelihoods and routes out of poverty. They also iden- broad support from the Government of Sierra Leone and
tified key drivers of change in the context for agricultural principal agencies; and it is embedded in key policy forums.
policies and programs and determined where investments
and other economic activities were likely to create new chal-
BENEFITS, IMPACT, AND EXPERIENCE TO DATE
lenges and demands for knowledge. This process required
participants to develop an initial map of the key institu- PAID is a young organization but already operates success-
tional elements and organizations relating to the AIS, which fully in a number of key respects. PAID members have for-
was transposed into a more formalized innovation system mulated and voted on appropriate governance structures,
domain structure. Next, the participants worked in groups rules, norms, and the interaction mechanisms required for
to map linkages between those domains. The subsequent PAID to operate effectively as a vehicle for delivering inno-
analysis and discussion highlighted a number of findings: vations in the agricultural sector. Under rules established by
the membership, “formal” interaction in PAID is collective
■ Weak or ineffective knowledge flows from markets into and consensual. Strategic decisions are made or endorsed by
the small-farm sector resulted in asymmetries that led to the general membership at the annual general meeting.
exploitive behavior. Operational decisions are taken at the district level and at
■ Very unidirectional and supply-driven knowledge flows events held at the platform level.
from intermediaries and from policy processes into the The organization has also launched two fast-track, com-
small-farm sector led to coordination problems and high modity-based innovation platforms. These initial platforms
transaction costs (see the next point). were selected based on information from field assessments
■ Formal policy processes were poorly linked with other by or with the participation of PAID member organizations:
key innovation system elements. Weaknesses at the cen-
ter and coordination problems limited the public sector’s ■ Solar drying in fruit and other horticultural value
effectiveness. chains. Twenty solar drying units operate in communi-
■ Weak links between financial institutions and other ele- ties in four districts in the Northern Province; early
ments of the AIS meant that formal lenders lacked infor- reports indicate that they are used successfully.
mation to support credit flows to rural entrepreneurs. ■ Poultry feed production and marketing. Maize is being
■ The research system had poor links with all other actors grown on 110 acres (46 hectares) across locations in Bo,
in the AIS. It did not deliver knowledge oriented towards Kenema, and Kailahun Districts for a seed multiplication
value addition in the market chain, and a lack of trust drive and eventual use for feed in intensive poultry pro-
persisted between researchers and actors in the produc- duction systems.
tion and agribusiness “side” of the sector.
The platforms have spun off active partnerships with
As a result of the workshops and related meetings, a core other actors who want to adopt platform technology,
group of actors decided to organize and form a partnership. including CARE International, MADAM-Sierra Leone, the
Through flexible alliances, members would engage in inno- Sierra Leone Centre for Agribusiness Development, and the
vative activities and build a better business environment to Nehemiah Project. To guide future priorities for developing
foster and scale out those activities. The Partnership for platforms, PAID has documented a more structured
Agricultural Innovation and Development (PAID), estab- approach consisting of open calls for proposals, concept
lished in Freetown in 2008, now operates autonomously as screening, investment events, and small grants for opportu-
a “partnership of service-providers,” open to all who sub- nity development.
scribe to its vision and mission. Membership in PAID makes it easier for people and orga-
Under a Memorandum of Association, PAID has a nizations to obtain information to guide choices, gain support
general assembly of all members, a board (elected by the for their decisions, and build alliances. Typically, information
MODULE 7: INNOVATIVE ACTIVITY PROFILE 1: SELF-ORGANIZING NETWORKS IN POLICY AND PLANNING IN SIERRA LEONE 591
Existing sector frameworks are still needed provided only in the context of a strategy and path towards
financial independence. As noted, PAID’s member organiza-
Networks for innovation are not a replacement for or an alter-
tions pay a registration fee and annual subscription
native to existing sector-wide and/or vertical subsector frame-
(approximately US$30 and US$150, respectively) to support
works. Such frameworks are still needed to provide the for-
core network costs.
mal process and democratic accountability around policy
and practice. Networks like PAID bridge such frameworks,
providing an opportunity for more flexible and less formal Improving linkages and working relationships
interaction within a different institutional paradigm. between research and the business sector
For networks like PAID, engagement with government is
Many networks dissolve because members perceive little
important but should be balanced to avoid prejudicing the net-
real value in participating. A key lesson from Sierra Leone
work’s independence and openness in decision making. Attain-
and elsewhere is to provide pathways to see initiatives
ing such a balance can be tricky. For example, Rwanda’s
through and gain the rewards of participation, both profes-
National Innovation Coalition is restricted to a few public
sional and financial. In practical terms, this means that the
sector bodies. Plans to establish another separate and more
network should offer a framework for adaptive research,
open agricultural innovation network attracted no high-
enterprise development, and scaling out innovations.
level support and were never implemented. In Bolivia, the
“Pull” mechanisms such as innovation-financing events
Natural Resources Information and Knowledge Network
and competitions and related processes will help to seed
(SICTAF, Sistema de Información y Conocimiento Tec-
ideas and new enterprises out of the network. For one of its
nológico Agropecuario y Forestal) explored establishing
members, the Sierra Leone Agricultural Research Institute,
itself as a self-governing, socially inclusive knowledge net-
PAID acts as a new framework for improving linkages and
work. The responsible ministry was unable to engage
working relationships between research and the business sec-
productively with such a network other than as its apex
tor. The network also serves as a channel to bring technolo-
institution, however; it never accepted that the network
gies already developed by the institute into use and for the
could operate within a self-defined governance framework.
institute to “plug in” to the new priorities emerging from
This lack of formal support was a key reason why the initia-
innovation platforms.
tive foundered.
PAID’s continuing heavy reliance on transmitting infor-
One lesson from this diverse experience is that the open,
mation directly through meetings and field operations
“flat,” nonhierarchical structure that favors innovation is not
raises costs and is one area where improvement is needed.
always consistent with established ways of doing government
The value of face-to-face interaction will never be replaced,
business. Indeed, where coalitions are facilitated to promote
but social networks for AIS can and should develop strategies
AIS they can end up reinforcing existing networks rather
to apply mobile and web-based social media. These technolo-
than bringing in new voices and influences on policy.
gies permit information and knowledge to be exchanged at
a low cost, both “internally” and with other stakeholders
Financial sustainability
and influencers locally and globally. PAID is exploring these
As always, financial sustainability remains a major consider- avenues through the African Forum for Agricultural Advi-
ation. The facilitation, coordination, and “market research” sory Services, which is piloting the Innodev platform
underpinning the creation of PAID in Sierra Leone were (www.innodev.org) in Sierra Leone and Uganda to support
financed by DFID, along with the core administration and problem solving through networks, enable groups to form
personnel costs. This initial subsidy is very likely to be a around opportunities, and attract support for entrepreneurs
generic requirement for such networks, but it should be through mentors and investment partners.
593
HOW NET-MAP WORKS a broad set of perspectives could be gained by including
people from: the private sector, NGOs, donor agencies, gov-
Net-Map can be used in planning, implementing, monitor-
ernment, and civil society (farmers, consumers); the
ing, and evaluating interventions. The following step-by-
national, regional, district, and local level; different ethnic
step description briefly explains how it works.
groups, nationals and foreigners, different ages and genders;
and agriculture, trade, finance, and industry. The ideal
1: Getting started group is between 6 and 12 people. Larger groups should be
Net-Map is a pen-and-paper method that involves drawing split into (equally diverse) subgroups.
networks together with participants (individuals or groups) The participants are asked to name all actors (individu-
to capture their complex knowledge of a system and make als, groups, organizations) involved. Actors include not only
implicit or tacit knowledge explicit. Net-Map can be used as those who are involved in formal decision making but
a tool by external actors, such as donors or researchers, to everyone who can influence or is influenced by the issue.
acquire a better understanding of the situation and monitor
its development. It may also be used internally (for example, 3: How are they linked?
by an implementing NGO or ministry) to help decision A link is something that flows from one actor to another
makers and implementers improve stakeholders’ involve- (like money) or connects two actors (like friendship). Typi-
ment, strategic planning, monitoring, and evaluation. Net- cal links in an innovation system are flows of money, ideas,
Map sessions are typically facilitated by a trained Net-Map innovative products, political pressure, and formal lines of
practitioner. command.
Before starting the activity, it is important to deter-
mine its framework and goal: Net-Map can be used as a 4: How strong is their influence?
one-off activity for planning or as a startup tool to get an
activity on track. For monitoring and evaluation, a base- This question focuses on how strongly the different actors
line Net-Map at the beginning of the intervention and can influence the specific issue at hand (not in the country
one or more follow-up Net-Maps are recommended (for at large)—for example, “How strongly can this actor influ-
example, after one, three, or five years). It is possible to do ence whether farmers use this new rice variety?” Actors’
a string of individual interviews or one (or more) group influence is defined as their ability to achieve their goals in
meetings. a social setting, despite resistance (Weber 1922).
The first step is to develop the overall question. It nor- The level of influence is represented by an “influence
mally has the format: “Who influences XY?” XY can be spe- tower” (using some small, stackable objects). The greater
cific (“Who influences farmers’ adoption of this new rice the influence, the higher the tower. The influence tower is
variety in this area within the next five years?”) or more gen- used to assess an actor’s actual influence on a given issue;
eral (“Who influences the innovativeness of the agricultural the actor’s influence can be based on a number of attrib-
sector in this country?”). utes, such as money, formal position, persuasiveness,
Often the more specific questions provide more specific informal ties, and so on. The influence tower does not
and therefore useful answers. For example, one might measure the actor’s formal position or how influential the
learn that network structures that encourage the adoption actor should be.
of a new rice variety might be similar to those for other
crops. 5: What are their goals?
The next step focuses on understanding the actors’ goals. In
2: Who is involved? some cases it makes sense to ask who actively supports the
innovation or innovativeness, who is passive, and who
The people attending the session normally consist of the
actively hinders it. In other cases, actors might follow two
host (the person/organization who is looking for answers),
competing philosophies or goals.
the facilitator (expert in the Net-Map method, neutral
in the content question), participants from different areas of
6: Discussion (what does this mean)?
the innovation system, and a note-taker. Choosing the right
participants is crucial, because the knowledge of the people In this step, the map is drawn, and any issues that came up
interviewed is the core source of information. For example, with the mapping are discussed. The discussion can include
MODULE 7: INNOVATIVE ACTIVITY PROFILE 2: USING NET-MAP TO ASSESS AND IMPROVE AGRICULTURAL INNOVATION SYSTEMS 595
Box 7.20 Net-Mapping a Poultry Innovation System in Ethiopia
The Debre Zeit-Mojo corridor in the Addis Ababa mar- analysis showed that this innovation cluster was inex-
ket shed is an exceptionally innovative area for poultry, tricably bound to the specific location (the Addis
where new breeds and methods are embraced much market shed, with a market for white-fleshed chicken)
more rapidly and widely than in other areas of the and the collaboration between large-scale poultry
country. Could Net-Map discover the network condi- producers and an agricultural research center. This
tions that encouraged agricultural innovation? What context-specificity meant that the Debre Zeit-Mojo
lessons could be learned for other geographical areas innovation cluster did not deliver a blueprint for
and other agricultural products? poultry innovation systems in more remote areas of
Net-Maps were drawn with researchers, extension the country. Further research, for example through
agents, and poultry farmers. The links that were mapped Net-Maps of poultry systems in less-privileged areas,
included: production inputs and equipment (embodied would be needed to understand how innovation could
knowledge); knowledge and information (disembodied be fostered under different conditions.
knowledge); credit and financial services; regulatory This experience shows how Net-Map can tease out
oversight; and coordination and cooperation. which innovation conditions are specific to a given
Through this process, participants discovered an context and which can be transferred as general lessons
innovation cluster of strongly interlinked private and for other areas. The method also helped colleagues who
public sector actors who had facilitated the develop- had worked in the country for a long time to see aspects
ment of a small commercial poultry farm sector. The of the innovation system of which they were unaware.
Net-Map was used in kick-off workshops for a proj- the community actors and district administrators: the
ect on pro-poor strategies to reduce the risk of avian animal health technician. The relatively low number of
influenza (http://www.hpai-research.net). Stakehold- animal health technicians in the system increased the
ers from different areas of poultry production, mar- risk that reports of suspicious bird deaths would be
keting, and government oversight mapped all of the delayed.
actors involved, focusing on two links: (1) flows of An even more crucial insight was related to the ne-
information about suspicious bird deaths and glect of market actors in avian flu compensation
(2) flows of intervention if avian influenza was con- schemes. Farmers were compensated for every bird
firmed. culled by the government in an outbreak, but no such
Group mapping allowed participants to exchange compensation was available to live bird traders. Partic-
knowledge about this network and highlight specific ipants diagnosed a potential corruption hot spot at the
bottlenecks. In Ghana, mapping revealed critical issues national border: Suspicious bird deaths in a trader’s
that had not been clear to the participants or flock would give the trader strong incentives to bribe
researchers beforehand. The Net-Mapping session border veterinarians, cross to the neighboring country,
indicated that if there was an outbreak on a small farm, sell the birds, and leave as soon as possible. This kind of
considerable information would be exchanged at the activity sets the scene for a regional pandemic. The net-
village level (including among teachers, opinion lead- work figure shown here represents flows of informa-
ers, and other actors unrelated to the poultry subsec- tion about suspicious bird deaths in Ghana, indicating
tor). Only one actor, however, bridged the gap between the corruption hotspot at the border.
Source: Author.
Note: More information including illustrative Net-Map examples can be found at http://netmap.wordpress.com.
MODULE 7: INNOVATIVE ACTIVITY PROFILE 2: USING NET-MAP TO ASSESS AND IMPROVE AGRICULTURAL INNOVATION SYSTEMS 597
IN O
NTOEV AT
X . IXV E A C T I V I T Y P R O F I L E 3
598
Both the PMCA and stakeholder platforms facilitate the Through the PMCA, women’s involvement and the involve-
articulation of demand and supply for innovation-linked ment of different groups of women are systematized in the
services and reduce transaction costs in marketing the pro- following ways:
duce of many small farmers (Bernet et al. 2008). In the
Andes, PMCA has been validated in two complete cycles, ■ Representation. Smallholders, female and male, repre-
both in Peru and Bolivia (2003–04). The method has been senting their communities at events return to their com-
shared with other organizations in these countries, which munities and share their findings and innovative ideas.
has led to further testing. In Peru, the Intermediate Tech- ■ Replication. Initial farmers, now acting as representa-
nology Development Group, an international NGO, subse- tive farmers, work with R&D partners to replicate
quently used the method in the cheese, coffee, and cacao knowledge-sharing events and activities with more
subsectors. Starting in 2005, PMCA was introduced and farmers in their area who grow native potatoes. For
tested in potato, sweet potato, and vegetable commodity example, a woman farmer in Puno shared information
chains in Uganda. with representatives of 12 communities in the Lake Tit-
icaca basin. In this way, innovative ideas for making
coffee from dried potato and adding value to freeze-
OBJECTIVES AND DESCRIPTION dried potato products spread to at least 10,000 farmers
A key feature of Papa Andina is that it brings together many in those areas.
participants in the AIS, including smallholders, market ■ Communication and recognition. Native potato product
agents, and agricultural service providers, many of whom ideas and technologies were also shared between women
did not know one another or who actively distrusted one farmers in Peru and women’s groups and R&D institu-
another, and helps to identify new opportunities for all of tions in Uganda, Bolivia, and Ecuador (Horton 2008;
these stakeholders to collaborate and innovate. Papa Andina Kaganzi et al. 2009).
recognizes that gender analysis and female farmers’ active
involvement in assessing innovation processes and systems The third innovative element is that Papa Andina pur-
are central to developing sustainable, profitable agricultural posefully demonstrated the value of women’s involvement
market chains that are well integrated into the wider inno- in the AIS. The initiative showed that it is possible to involve
vation system. In turn, this system-level integration is resource-poor women farmers as key stakeholders in the
important for gender equality and the empowerment of potato value chain; the participating R&D institutions
resource-poor women and their families. demonstrated the value added by gender analysis and
Each phase of the PMCA incorporates specific gender- investing in women’s innovation; and the donor agencies
related assessments and activities (table 7.10). Flexibility in played an important role in establishing the need for gender
the duration of each phase and in the use of specific tools assessment and the integrated involvement of women farm-
(quantitative surveys, focus groups, and so forth) is necessary ers in R&D as key stakeholders.
(Bernet et al. 2008).
MODULE 7: INNOVATIVE ACTIVITY PROFILE 3: THE CASE OF PAPA ANDINA IN PERU 599
600
AGRICULTURAL INNOVATION SYSTEMS: AN INVESTMENT SOURCEBOOK
Table 7.10 Phases of the Participatory Market Chain Approach and Gender Assessment and Related Activities in Each Phase
Phase Overall activitya Gender-related assessment and activity
Stakeholders identified – Get to know the market chain actors and other – Integrate gender sensitivity training into R&D organizations as they begin their
stakeholders—their activities, interests, ideas, stakeholder identification activities.
Phase 1: 2–4 months problems, and so forth: – Include women farmers as a stakeholder group in the rapid assessment of the market
Step 1: Conduct a 3- to 6-week rapid assessment chain. R&D partners, including investors, reinforce the need to address women’s
of the market chain and identify key specific needs in PMCA.
stakeholders. – Initiate family and community competitions for innovation to recognize women’s
Step 2: Hold a one-day workshop to define impact contribution to the value chain (box 7.23).
groups using the impact filter. – Among the stakeholders, identify women’s groups and male and female leaders who
Step 3: Hold a final event for phase 1 to share support gender equity and empowerment; encourage them to highlight or discuss
information and secure stakeholders’ issues and benefits for women farmers in workshop events.
continued involvement.
Stakeholder platforms engaged – In a participatory manner, analyze potential – Platforms bring together female and male small-scale farmers from different
business opportunities; work in thematic groups of communities in the region, market agents, and agricultural service providers to share
Phase 2: 3–5 months 10–20 persons; establish new stakeholder findings and customs, with support from R&D institutions. Many of these stakeholders
platforms or strengthen existing stakeholder will be unfamiliar with each other.
platforms; R&D organization involved provides – Identify and involve NGOs engaged in related gender analysis and women’s
facilitator to assist groups. empowerment programs. Their involvement may be the key to the success of these
– Using the following tools, each thematic group platforms.
analyzes potential business opportunities: rapid – Gender equity (participation of women representing different ages, classes, and ethnic
market appraisal; quantitative market survey; focus groups) is included in the platforms and in the selection criteria for the thematic
groups. groups.
Implementation of joint – Implement joint market innovations: work in – Analyze continued knowledge sharing by women farmers and gender roles and
market innovations thematic groups of 10–20 persons; R&D relations within the stakeholder platforms for further technical and institutional
organization involved provides facilitator to assist innovation at the national and international levels.
Phase 3: 4–6 months groups. – Women and men continue to participate in fairs and events outside their communities
– Each thematic group uses marketing concept (regional and national) to demonstrate their knowledge and stimulate participation in
development and business plan to test or stakeholder platforms.
implement, monitor, and evaluate their innovations. – R&D partners monitor/evaluate how individual women farmers have gained
If necessary, phase 2 activities can be revised (for confidence to join new and extended networks and to exchange varieties cultivated in
instance, by adding focus groups to clarify other areas of the Andes.
consumer preferences). – R&D partners monitor/evaluate how male and female farmers have gained individual
and collective capacities and skills for communication, negotiation, facilitation, and
teamwork.
– Encourage ongoing discussion within the project of how market chains empower
disadvantaged farmers who otherwise have little opportunity to participate and make
decisions.
– Encourage ongoing discussion within the project of how women have the chance to
interact with other market chain actors and professionals from R&D organizations,
thereby increasing their access to knowledge, innovation, contacts, and self-
development.
Source: Author.
a. The activities in each phase of the PMCA (described in detail in the “User Guide”; see Bernet, Thiele, and Zschocke 2006) occur consecutively over 9–15 months.
Box 7.23 Innovation Fairs to Assess and bring their large store of knowledge to bear on the innova-
Recognize Women’s Contributions to tion process for native potato.
Market Chains and the Agricultural In recent years, women farmers in some regions of Peru
Innovation System have established profitable businesses supplying native
potatoes to national and/or international markets. Messages
about women’s advancement in marketing chains and inno-
Every family and community in the high Andes
has developed its own varieties of native potato. vations have been highlighted in public-private R&D part-
Seed of native potato varieties is usually obtained nerships and corporate social responsibility commitments
by inheritance, barter, or as a gift. The PMCA part- involving such companies as Pepsi-Co and its subsidiary,
ners support local, provincial, regional, and even Frito Lay.2 New products marketed by some companies have
national fairs—public events where farmers (men used the image of an award-winning female farmer. These
and women) have a chance to demonstrate the examples have been reported to the author as motivating
varieties they prefer to select, store, cultivate, har- female producers to participate in the native potato market
vest, process, consume, and market. These fairs are chain.
opportunities for communities and farmers to
highlight the enormous diversity of potatoes they
use and explain how they have managed this native LESSONS AND ISSUES FOR WIDER APPLICATION
potato biodiversity over time. The participants
Several gender-related lessons have emerged from Papa
may exchange seed or buy tubers from one
another at these fairs. Andina. Donor priorities were an important contextual
Fairs represent an excellent opportunity for consideration for incorporating gender assessment in the
farmers to obtain information from one another native potato innovation system. Donor agencies’ initial
as well as from R&D partners. In most cases, wives proposal development and planning criteria for gender,
accompany their husbands to the fairs, because empowerment, and working with NGOs stimulated the
women are the farm household members with the requirements for gender assessment and the integrated
best knowledge of the morphological and qualita- involvement of women farmers in R&D as key stakeholders.
tive characteristics of each potato variety. Family As a result, “researchers and NGOs that have worked with
collections can be extensive: A small-scale farming Papa Andina are more aware of gender issues and the need
family at one fair presented more than 600 vari- to achieve impact at farmer level” (Devaux et al. 2010).
eties. Women farmers report that the fairs enable
In some cases, the benefits of traditional and newly
them to feel rewarded and recognized for their
developed innovations generated by the stakeholder plat-
efforts in preserving and maintaining the extraor-
dinary biodiversity of native potatoes. forms remain highly localized. For example, with support
from USAID, one farming community sold a local variety
Source: Author. of potato known as “Capiro” to Frito Lay to produce
potato chips for the domestic market (the company had
previously imported potatoes from Colombia). Farmers
earned more than US$1.6 million in sales, but this success
cannot be replicated easily because the domestic market
as NGOs. This support can also entail technology transfer for snack foods is limited. Farmers are also cautioned not
to farmers and opportunities to fine-tune technologies to to regard this success story as an inducement to grow just
specific conditions. one variety of potato. The maintenance of potato diver-
In phases 2 and 3, thematic groups use communication sity remains central to the innovation system and its
and collaboration to address and break down traditional stakeholder platforms. Although female farmers, espe-
gender roles, divisions of labor, and power relations. Recog- cially indigenous women farmers, have brought a wealth
nizing women’s role in the selective breeding of native of experience to market chains and agricultural innova-
potato varieties in different ecosystems and their detailed tion, women farmers often struggle to ensure that their
knowledge of different potato phenotypes helps to counter- knowledge benefits themselves, their families, and their
act gender bias. Communication activities, including the communities. Investment strategies that establish net-
innovation fairs, focus on how Andean women have culti- works of information and knowledge sharing can increase
vated native potatoes. These activities enable women to the impact of locally developed and innovative practices
MODULE 7: INNOVATIVE ACTIVITY PROFILE 3: THE CASE OF PAPA ANDINA IN PERU 601
and strengthen the abilities of women and their commu- of the innovation system and the continuing activities of
nities to meet their agricultural and economic needs in a the stakeholder platforms.
culturally appropriate and environmentally sensitive ■ Through networking provided by the stakeholder plat-
manner. forms, identify suitable technological and institutional
Despite women’s critical role in the potato market chain, innovations. In particular, review the suitability of tech-
subsistence production, in which women are usually nologies or institutional arrangements available in other
involved, receives less institutional support than cash crop market chains that have become successful and sustain-
production. The number of female extension officers in able for women farmers.
public extension systems is very limited (although the only ■ Identify and respond to socioeconomic factors that may
NGO working in the high Andes, Fovida, provides a few affect the adoption of proposed technological or institu-
female agents). As a result, resource-poor women farmers tional innovations (for example, security of resources; ten-
are less likely than their male counterparts to receive agri- urial arrangements for land or water; access to inputs such
cultural extension services. Forming links to NGOs within as credit, seed, and fertilizer; and membership in producer
phases 2 and 3 of the PMCA is important to strengthening groups). Identify activities that are particularly time-
the innovation system in this regard. and/or energy-consuming for women and address them
Aside from these relatively specific lessons, Papa Andina with targeted investments and supporting interventions.
offers a number of more general considerations about the ■ Increase and sustain the supply of information, tech-
successful integration of women into any AIS: nologies, and facilities that women may fail to access
because of social exclusion (examples include market
■ Assess the entire system and individual agrifood value information, transport, appropriate tools and equip-
chains using a mainstreaming approach that includes ment, and so forth).
the use of gender analysis to recognize women’s role and
gender relations in production and decision making. Papa Andina illustrates the centrality of gender issues in
Indispensable tools for gender analysis in innovation sustainable and inclusive agricultural development and the
assessment are gender-disaggregated data; analysis of effectiveness of the AIS as a whole. Gender assessment and
women’s and men’s access to resources such as labor, strategies to ensure the participation of women in value
land, capital, and knowledge; and the engagement of chains are important tools to identify the strengths and
women in capacity-building activities. diversity of actors in innovation systems. R&D institutions
■ Ensure that the full range of women’s and men’s activi- play an especially important role in ensuring that innova-
ties, resources, and benefits is reflected in the assessment tion benefits small-scale male and female farmers.
corresponding reforms that would enable the research sys- Scenario planning may help address such questions
tem to meet them. ICAR management evaluated the likely
Scenario planning is a structured process of thinking about
benefits and impact of alternative reform scenarios and
and anticipating the future that helps to break the mindset
determined which specific reforms to support through the
that the future will be a continuation of the past (van der
National Agricultural Innovation Project (NAIP). This
Heijden 1996). It entails the development and collective
process increased the government’s ownership of the
analysis of a set of scenarios, which are narratives of alter-
reforms and its commitment to implement them. This pro-
native environments that show how different interpreta-
file summarizes key elements of the process and its findings.
tions of driving forces can lead to different plausible futures
The cost of the scenario planning in India involved several
(Ogilvy and Schwartz 1998; van der Heijden 1996).
components: external facilitators (US$100,000); preparatory
studies (US$30,000); workshops (US$60,000); peer review-
ing (US$5,000); and dissemination (US$20,000). Funding
PROJECT OBJECTIVES AND DESCRIPTION
came from the budget for preparing NAIP (US$155,000) and
a US$60,000 grant from the World Bank’s Agricultural and Scenario planning was used to explore the uncertainties sur-
Rural Development Department (ARD) to support knowl- rounding Indian agriculture and identify the key decisions
edge generation. The investment of staff time was also sub- that would need to be taken to ensure that India’s agricul-
stantial for ICAR and the World Bank, on the order of 30 tural technology system was prepared for the future. The
weeks for each institution. assessment included a wide range of stakeholders and
enabled participants to develop a shared perspective on a
future that was not necessarily a continuation of the past.
BACKGROUND AND CONTEXT
The scenario development and analysis were conducted in
To address the challenges facing agriculture in India and parallel with the design of NAIP.
consolidate the gains under the completed National Agri- For these parallel efforts to succeed, they required the
cultural Technology Project, the Government of India and participation of high-level officials, farm leaders, senior
the World Bank agreed to undertake a new National Agri- leaders from the public and the private sectors, NGO lead-
cultural Innovation Project (NAIP) (see IAP 2 in module 4). ers, donor representatives, experts on agricultural develop-
In preparing the project, it became clear that many uncer- ment, and some “remarkable people” (a term used in the
tainties faced agriculture and agricultural science and tech- scenario planning literature to describe lateral thinkers).
nology in India. For example, how would global warming The process was managed jointly by the regionally and
affect the production characteristics of Indian agriculture? centrally based staff of the World Bank’s ARD. An Indian
603
co-leader was invited, and experienced scenario planning fields may require further assessment to understand
experts facilitated the process, which was organized around how the impact of change on these variables can be
seven information-gathering and knowledge-sharing steps: managed.
1. Identify driving forces for future change, taking into As hoped, the scenario project co-evolved with the NAIP
consideration political conditions, economic develop- project (table 7.11), enabling NAIP to benefit from the
ments, social developments, environmental trends, and understanding emerging through the scenario work. In this
technological changes. way, the NAIP model was tested in various “environmental”
2. Identify predetermined factors. Which future develop- conditions specified by the scenarios—a process sometimes
ments will take place in any scenario? referred to as “wind tunneling.”
3. Identify critical uncertainties—in other words, critical The main steps included the following:
areas in which the future is uncertain.
4. Develop scenario plots. A scenario is defined by a combi- 1. An initial workshop at World Bank headquarters in
nation of two critical uncertainties, drawn out and shown Washington, DC, to introduce the scenario planning
as axes on which the scenarios are plotted. Then a com- concept and process and to receive wider buy-in among
prehensive description of how the future will look under staff for the process that would unfold (figure 7.3).
this scenario is developed. These futures must be plausible. 2. Interviews with “remarkable people” to explore the
5. Consult with those having relevant expertise. The sce- issues and concerns for future agricultural development
narios are presented to a large number of people who in India (van der Heijden 1996; box 7.24).
have relevant expertise; their comments are collected and 3. A workshop in India to launch the process and obtain
incorporated in the scenarios. Consultation helps to input from participants.
identify knowledge gaps and guides decisions on whether 4. A scenario analysis and design workshop to identify
and what additional knowledge must be gathered. the key scenarios that would be developed (following
6. Assess the implications of different scenarios. The best the steps described earlier to identify the critical ele-
possible responses of the client organizations to each of ments of each scenario: driving forces, predetermined
the plausible future scenarios are assessed. factors, and main uncertainties). The scenario plots
7. Compare possible responses to the scenarios. Two ele- (figure 7.3) had two main dimensions. The first was
ments in the comparison require special attention. First, economic management, which could be strongly market
there are those actions that can be found in all responses based and liberalized but also more government con-
and tend to be low risk. Second, there are the responses trolled and centrally led. The second was the social fab-
that differ strongly among scenarios. Responses in these ric of the countryside and the country in general, which
Table 7.11 Timing for Preparing the National Agricultural Innovation Project (NAIP) in Relation to
Scenario Development
Timing NAIP Scenario project
September 2004 Internal planning workshop in the World Bank
April 2005 Start of project preparation Scenario agenda workshop at Indian Council for Agricultural Research
July 2005 Draft Project Appraisal Document (PAD) Scenario building workshop; development of first-generation scenarios
August 2005 Polished PAD Research on the validity of first-generation scenarios
October 2005 Quality enhancement review
December 2005 Project appraisal
February 2005 Negotiations Second-generation scenarios concluded and circulated for comments
April and June 2006 Board approval Workshops in India and at the World Bank on the implications of the
scenarios
July 2006 Project becomes effective and
implementation begins
Social
Interventionist Economic management Liberalized
texture
3. Over the mountains 2. Along the edge
Centrally planned economy Reliance on Market forces given free rein
Freedom reined in personal Rich/poor divide
Agricultural reform by compulsion incentives Agricultural reform by economic necessity
could be strong, with rural people well organized in vil- BENEFITS TO NAIP AND IMPLICATIONS FOR
lages that are able to take care of their problems, or SCIENCE, TECHNOLOGY, AND INNOVATION
weak, in which case the poor would be more marginal-
Scenario analysis contributed to the design of NAIP in many
ized. Using these two dimensions as the axes of a 2 x 2
ways. The process truly engaged people in thinking outside
matrix, 4 combinations emerged that can serve as per-
their everyday domains and resulted in four very different
spectives on the future of Indian development. One of
but plausible scenarios. The process led ICAR to think about
the combinations introduced a third dimension of
the issues beyond its own technical competence and to
rapid global warming.
strengthen the realization that the world it serves requires
5. Finalization and presentation of the scenario storylines,
new approaches, including social organization and institu-
including the development of full scenario stories (see
tional innovation.
Rajalahti et al. 2006) and their validation.
The scenarios were considered very useful for envision-
6. Scenario analysis results workshops were organized to
ing long-term science and technology needs. Scenario devel-
define the way forward in relation to NAIP and ICAR.
opment clearly revealed two major needs: to work on insti-
The specific goal was to identify how the scenarios could
tutional arrangements for R&D (farmer organizations,
help to identify which critical decisions needed to be
sector boards, cooperatives) and fully explore the potential
made to maximize the future role and impact of India’s
of nonfarm rural employment.
technology system.
The scenario process also helped the project design team
to define the scope of NAIP’s components, particularly the
institutional development needed for the AIS to evolve. It
INNOVATIVE ELEMENT
highlighted the importance of enhancing the capacity for
Scenario planning was done to build consensus and elicit dialogue and interacting with other stakeholders in the
outside-the-box thinking among diverse stakeholders innovation system. Flexibility, rather than the pursuit of one
that traditionally did not engage with each other in reform strategy, was considered a key trait for a successful
science and policy discussions. The results were used for organization in a rapidly changing world.
designing a long-term investment project in science and The client organizations used the national scenarios to
technology. strengthen their visioning capacity and strategy development
MODULE 7: INNOVATIVE ACTIVITY PROFILE 4: SCENARIO PLANNING TO GUIDE LONG-TERM INVESTMENTS 605
LESSONS LEARNED AND ISSUES
Box 7.24 Key Issues Raised by “Remarkable
FOR WIDER APPLICATION
People”—Including Opinion Leaders
and Policy Makers—in the Scenario Scenarios provided a neutral space for building consensus
Development Process, India about critical decisions surrounding the future role and
impact of India’s technology system. The following recom-
The key question posed to the interviewees was, mendations, suggested adjustments, and limitations should
“When thinking of the future of Indian agricul- be kept in mind by those engaged in a similar exercise:
ture, what keeps you awake at night?” Four main
themes emerged from these interviews:
■ Adapt scenario analysis to specific planning tasks,
■ Will there be enough water for future genera- such as the development of a country assistance strat-
tions? How can water be managed sustainably? egy, sector strategy, project, or regional plans. Apply-
■ What will drive Indian agriculture in the future: ing the analysis to larger, global issues is far more chal-
government or the market? What is the right lenging.
balance? ■ Implement the scenario process ahead of project prepa-
■ How will rural communities change? How fast ration because scenario analysis requires a significant
will rural–urban migration proceed, and what time commitment, particularly for consultation and
is the future of small-scale farming? validation.
■ How can rural stakeholders voice their ■ Allocate sufficient time and resources for clients to
views––women, farmers, the private sector? understand and come to own the process.
Source: Rajalahti et al. 2006. ■ Form a multidisciplinary scenario team, led by an expe-
rienced scenario leader(s).
■ Draw participants from many disciplines and repre-
senting a range of views (India’s scenario-building
at the level of specific regions and products, such as rice, dairy process, for example, included people from outside the
products, and medicinal plants. For this purpose, groups of agricultural sector). It is also essential to include partici-
stakeholders were asked to develop the national scenarios for pants representing the groups that the process aims to
the product or region of their interest. influence.
The national competitive fund for research consortiums, ■ Pay close attention to the following: the need for a full-
managed by ICAR, subsequently was aligned with the issues time manager to oversee the process; the availability of
identified by the scenarios. These consortiums have been research capacity with adequate resources; the need to
the main means of reforming India’s agricultural research manage and guide research performed by third-party
system and enabling it to move toward a more demand- institutes; the coordination required to operate a vir-
driven, multistakeholder approach in addressing innovation tual team over long distances; and managing political
needs. See module 4, IAP 2. sensitivities.
607
markets and trade, rural policies and rural development, nat- rizes the main thematic recommendations. In the final step,
ural resource management and climate change, and science consultation and dissemination, the action plan was widely
and technology. The team produced short summaries of the shared in the country through presentations, press releases,
studies and shared them at the first workshop. Information and web publishing. Feedback from these events concluded
on seven subsectors (clusters) (fresh fruit, processed food, the process and initiated the preparation of budget proposals.
wine, native forestry, dairy, red meats, and cereals) con-
tributed to building scenarios and discussing their implica-
INNOVATIVE ELEMENT
tions. Further input came from interviews with 11 opinion
leaders and “remarkable people” (lateral thinkers who could The Chile exercise recognized the uncertainties of the
bring alternative perspectives to the dialogue) representing a future, used this insight to understand the basic long-term
wide range of views from the public and private sector, as well competitive advantages of its agricultural sector, and drew
as academia and civil society. These views helped in drawing the implications for change. Rather than diagnosing the
implications and identifying important elements of the vision present situation and proposing remedies, the study formu-
for 2030 (box 7.25). lated future ambitions and specified the action required to
A subsequent scenario building workshop, facilitated by FIA get there. The proposed changes to the innovation system
and World Bank staff and external consultants in December were (rightly) perceived as the next step forward and not as
2010, convened 24 experts from the public and private sectors, a recognition of past failure.
academia, and civil society. Four scenarios were outlined in a
series of plenary sessions and smaller working groups. The BENEFITS TO CHILE’S AIS
core team then consolidated the scenarios, developing compre-
hensive descriptions that were submitted for validation to the The benefits of the approach described here derive from its
original workshop participants, the scenario team, other constructive, creative, and collaborative features and from
experts in Chile (more than 70 people), and five external peer the comparative strengths of FIA (local and national exper-
reviewers. The team incorporated the feedback, emphasizing tise) and the World Bank (international experience). The
scenario 2 (“Terra Calida”) and consolidating scenarios 1 and involvement of former presidents, cabinet ministers, journal-
3 in a “Business as Usual” scenario (figure 7.4). ists, scientists, businesspeople, individual farmers, farmer
organizations, and many other individuals was highly produc-
tive. The discussion was conducted in simple, frank language.
Action planning and dissemination of results
Participants shared and developed considerable knowledge
The core team combined the analysis and proposals from and linked it to a specific plan for action. The plan recognized
the position papers into an action plan. Box 7.26 summa- that Chile has sophisticated ambitions in high-value markets
and is not satisfied with imitating wealthier countries.
Box 7.25 The Vision for Chilean Agriculture Somewhat by chance, the approach proved politically
in 2030 robust: The work was started by a left-leaning government and
finished by right-leaning government. Nor did the second
biggest earthquake in the history of the world derail the study.
In 2030 Chile is a quality producer of a range of food The forward-looking nature of the study motivated
and fiber products. Its international image is marked strong participation and interest in its results. By looking far
by the diversity that its geography allows it to pro- into the future, participants ensure that several issues that
duce. The sector has an emphasis on environmental
had been forgotten or considered out of bounds (technology
sustainability and wholesomeness, valued by both
transfer, the role of the ministry, the importance of qualified
domestic and international consumers. Through the
application of ICT, investments in agricultural tech- human resources) regained relevance and received attention.
nology and the training of its labor force, Chile has
been able to develop profitable value chains, well LESSONS LEARNED AND ISSUES
integrated from production to final markets, and FOR WIDER APPLICATION
able to remunerate its participants at comparable
levels to the rest of the Chilean economy. Briefly, lessons from this process include the following:
Source: World Bank 2011b. ■ The local partnership was key to success. Vision building
is a very labor- and communication-intensive process.
3 4
Common Impacts:
(a) Few climate variations
(a) Price increase of oil and
(b) High increase in demand of
fertilizers
meats and fruits
(b) Increase in quality
(c) No change in tariffs
requirements
(d) Few regulations over use of
Low intervention of (c) Biotechnology development,
natural resources
public policies ICTs
Source: Authors.
Note: BAU = Business as Usual; ICTs = information and communication technologies; “Terra Calida” is a reference to the effects of global warming.
MODULE 7: INNOVATIVE ACTIVITY PROFILE 5: A VISION FOR AGRICULTURE IN CHILE IN 2030 AND THE IMPLICATIONS 609
INNONTOEVX
AT. XI V E A C T I V I T Y P R O F I L E 6
SYNOPSIS environments. The KPOs were all NGOs, with one excep-
tion: the animal husbandry department of an agricultural
The rationale of the Fodder Innovation Project (FIP),
university (see module 4, IAP 1).
implemented in India and Nigeria in 2007–10, was that per-
sistent fodder shortages arose from a scarcity of fodder
innovation capacity, not of technology. A diagnosis of the
PROJECT OBJECTIVES AND DESCRIPTION
limitations of networks and institutional arrangements
associated with specific fodder-related themes was done to The project’s rationale was that the persistent fodder shortage
design activities to address those limitations. The project’s suffered by many poor livestock keepers did not arise from a
monitoring system was designed to include a baseline sur- scarcity of technology itself but from a scarcity of fodder
vey of households, a map of current innovation capacity, innovation capacity (Hall, Sulaiman, and Bezkorowajnyj
and an actor linkage matrix and scoreboard to track institu- 2008). Fodder innovation capacity was defined as the net-
tional change. The difficulties encountered with all of these works of organizations that mobilized ideas and resources
methods provide some cautionary lessons. First, an essential and the institutional settings that framed the relationships
foundation for M&E within any innovation system project involved in innovation. The project used an approach
is to determine whether the expected outcomes are develop- inspired by action-research to explore how these networks
mental or institutional, because this orientation directly and institutional settings could be strengthened, with the
influences the kind of M&E approach required. Second, expectation that they would drive fodder innovation.
data requirements and tools for monitoring must be The project’s implementation strategy was for the project
adapted to the realities of short projects. Third, collabora- management team to help the KPOs select fodder-related
tive development of tools for monitoring institutional themes (challenges but also opportunities, such as new mar-
change helps to ensure that they are appropriate and owned kets for milk), diagnose the limitations of current networks
by the partners who need to use them. Finally, the evalua- and institutional arrangements associated with these
tion of innovation system projects such as FIP, in which themes, and design activities to address those limitations.
socioeconomic impacts may become apparent some time The project management team then helped the KPOs mon-
after the project ends, should include and adequately fund itor the effectiveness of their efforts in stimulating institu-
strategies for learning how the project led to impacts. tional changes and, where needed, helped them alter their
plans in light of information revealed by monitoring. The
project hired two research fellows to conduct diagnostic
CONTEXT
studies, investigate which activities and processes were
The innovation system perspective in the Fodder Innova- enabling the development of fodder innovation capacity,
tion Project (FIP)2 built on lessons from an earlier project and identify any resulting developmental outcomes.
(2004–07) that indicated the limitations of a technology- After three years (of which the first year was spent iden-
transfer approach in addressing fodder scarcity. The project tifying suitable KPOs and introducing them to the project’s
was implemented in India and Nigeria in collaboration with rationale), some immediate outcomes became evident in
five key partner organizations (KPOs), which formed the the project sites. They included more efficient veterinary
nucleus for stimulating change in their local innovation and input service delivery systems; changing collaborative
610
practices of actors; changing institutional arrangements to one was debated considerably. Finding comparator “with-
make additional fodder produced available to women, the out” sites was problematic, so the designers adopted a
landless, and poor livestock-keeping households; evidence “before-and-after” approach. Seventeen locations were
of demand being generated for fodder varieties and other selected from the five project sites in India and Nigeria and
livestock-related knowledge and technologies; and the 2,047 households interviewed. Data collection began six
KPOs institutionalizing and mainstreaming their approach months into the project, took over a year to complete, and
in their other activities or across different organizations. the initial analysis of the baseline data was incomplete at the
end of the project. The survey was not repeated at the end
of the project to develop the “after” scenario, as time and
INNOVATIVE ELEMENTS OF MONITORING
resources were not available.
AND EVALUATING THE FODDER INNOVATION
PROJECT
Monitoring institutional change
Because FIP was inspired by an action-research approach,
the iteration and recasting of activities based on their To monitor changes in the institutional environment, the
relative effectiveness in strengthening networks and institu- project team planned to develop an institutional baseline.
tional arrangements were regarded as central to exploring The baseline would have two functions. A diagnostic
how to develop innovation capacity. A monitoring system function—identifying institutional issues that needed
was a critical element of this iterative process, but the issue attention—would form the basis for the initial set of project
of how to design a monitoring system for FIP was contested interventions. A monitoring function would track progress
within the project’s management team. in facilitating institutional change.
Some felt that the project was a development project and To collect this baseline information, FIP investigated fod-
that monitoring should therefore focus on what they viewed der innovation capacity using a methodology developed by
as the project’s major deliverable: household-level outcomes. the World Bank (Hall, Mytelka, and Oyelaran-Oyeyinka
This view was reinforced by the donor’s desire to see tangible 2006; World Bank 2006). The methodology involved explor-
results in areas planted to new fodder species and related live- ing four main elements of innovation capacity: (1) actors
stock feeding practices adopted by poor households. Others and their roles; (2) patterns of interaction among the actors;
regarded the project as a research project. Their view was that (3) the institutions (rules that govern interactions); and (4)
any developmental outcome would be on a relatively small the enabling policy environment. Using this framework,
scale and at best a byproduct of an experiment attempting to project staff struggled to develop sufficiently detailed
understand how to facilitate institutional change associated accounts of the institutional dimension of fodder innova-
with the development of innovation capacity. tion capacity to inform implementation design. They
Given the strongly held and often opposing views tended to develop more macro-level or generic accounts of
about the types of outcomes against which the project the weaknesses in innovation capacity—the missing links
should monitor its performance, the team decided to pro- between research and development actors—with a view to
ceed on two tracks. The first was an impact assessment publishing them as academic papers. It should be stressed
exercise; the second was to monitor changes in the insti- that the weakness was not in the method but in the guidance
tutional environment. given to those who were expected to use it.
Acknowledging that the diagnostic and institutional
baselines were not helping to develop action plans, project
Impact assessment
staff held workshops with the implementing partners to
The impact assessment involved designing and conducting diagnose critical issues and develop plans to proceed. These
a household survey to collect baseline information about workshops relied on implementers’ knowledge of their own
animal feeding practices, cropping patterns, and household operating environments; the role of the project was to facil-
incomes. Statistical expertise was brought into the project to itate them to identify key bottlenecks that needed to be
help design the survey instrument and develop an appro- addressed in this environment. The question of how to
priate sampling approach. The design anticipated repeating monitor institutional change remained open. The project
the survey at the end of the project to judge impacts. recognized that monitoring was the key to iterative learning
The designers of the impact assessment recognized the and thus a critical part of the experiment to investigate how
need for a counterfactual, although the means of developing to facilitate fodder innovation capacity.
MODULE 7: INNOVATIVE ACTIVITY PROFILE 6: MONITORING AND EVALUATION IN THE FODDER INNOVATION PROJECT 611
The project also recognized that the primary institu- into place led to institutional changes, which led in turn to
tional dimension of capacity that needed to be addressed changes in livestock feeding practices. The project team
across all project initiatives was the pattern and quality of searched for examples of institutional change and devel-
linkages between players associated with fodder innovation. oped accounts of how they took place and their outcomes.
The project selected two tools to discern these patterns. The They learned that many of the institutional changes taking
first was an actor linkage matrix (Biggs and Matseart 1999). place related only indirectly to fodder use. Instead, they con-
This tool draws up a list of organizations on the axes of a cerned innovations in output markets for milk, disease sur-
matrix. In a workshop setting, the matrix can be used to veillance, veterinary services, and conflicts over access to
map patterns, linkages, and collaboration and identify land and grazing areas. Project partners had felt that these
which missing links and relationships could be formed for issues needed to be addressed as a precondition for fodder
the change process to work more effectively. The second tool innovation.
was a scoreboard developed by the project to help partners Evaluation in FIP was external, independent, and com-
assess qualitative changes in the nature of relationships. For missioned by the donor. The approach was an output-to-
each relationship identified in the actor linkage matrix, the purpose review based on FIP’s logical framework. While this
KPOs used the scoreboard parameters to specify the quality exercise was adequate for accountability, it was not clear that
of these relationships. The project team, partners, and other it generated project-level lessons that could be used in
stakeholders would conduct this scoring exercise periodi- future interventions.
cally. The parameters were (1) embracing the project
approach; (2) openness and flexibility; (3) level of joint
LESSONS LEARNED AND ISSUES
actions; (4) the perceived value of interaction; (5) punctual-
FOR WIDER APPLICATION
ity and commitment; and (6) use of own resources for proj-
ect activities. Table 7.12 depicts a partial scoreboard. The experience with M&E in FIP yielded cautionary lessons
about mixed messages on expected outcomes and the risks
of using data-intensive monitoring methods in short proj-
EXPERIENCE TO DATE WITH MONITORING
ects. Greater collaboration in designing monitoring tools
INSTITUTIONAL CHANGE
and a greater emphasis on using evaluations as learning
The project management team felt that these tools were well opportunities would also have been valuable.
conceived, yet the KPOs found them cumbersome, particu-
larly the scoreboard. KPOs felt that the scoreboard could ■ Clarify the nature of the interventions and expected
not be used in a participatory way with their partners and outcomes. An action-research project of this type—and
stakeholders, because it raised sensitive issues that could most innovation system interventions are going have an
undermine the relationship-building process (table 7.12 action-learning orientation—runs the risk of sending
compares externally and internally generated scores). A mixed messages to the donor and project partners about
more worrying trend quickly became apparent: The KPOs the nature of the outcomes it is expected to deliver. These
were using the actor linkage matrix and scoreboard mainly mixed messages directly affect the monitoring strategies
to report back to project management rather than for their adopted and set up internal conflicts about whether
own learning. developmental impacts or institutional changes are to be
In fact, the KPOs were all well embedded in the prevail- monitored. Getting agreement on these issues right from
ing institutional context. They had their own informal ways the start is an essential foundation for the M&E system
of analyzing that context and identifying which partners within any innovation system project.
and stakeholders they needed to draw in to support their ■ Tailor data requirements and tools for monitoring
intervention. They were well aware of the sorts of incentives impact to the realities of short projects. Resources spent
that different partners and stakeholders would require to on an elaborate baseline for a short project of this type
participate in particular project activities. When they were were probably misspent. The project did have a responsi-
given project resources to focus on this networking, they bility to track its contribution to developmental out-
were able to use their pragmatic knowledge of the context comes, but the team should have selected an approach
and make good progress. that was more appropriate for generating data that the
The single remaining monitoring issue was that the proj- implementers could use in designing, redesigning, and
ect still had to collect evidence that the interventions it put managing the intervention. Such an approach would
almost certainly have involved rapid, qualitative ■ Link impact measurement to learning. The evaluation of
appraisal methods. Another valuable approach would FIP could have paid much more attention to learning how
have been to use Causal Process Tracing to help unravel a project like this could lead to impacts. The baseline sur-
the underlying institutional (and other) causes of out- vey conducted for FIP could be valuable for this purpose:
comes observed. This approach would have been partic- Repeating the survey some years after the project’s end
ularly important in FIP, as many of the outcomes would provide valuable lessons about impact as well as
recorded were either unexpected or tangential to the underlying processes of change. Donors could consider
original ambition to reduce fodder scarcity. providing projects with resources to commission base-
■ Collaboratively develop tools for monitoring institu- line surveys, and donors could commission impact
tional change. The institutional monitoring tools for assessment and evaluations to be done after the project’s
FIP were well conceived but failed largely because they end. This approach would be particularly useful for
were “expert”-driven and not appropriate to or owned innovation system projects in which large-scale socio-
by the partners who needed to use them. A more useful economic impacts are evident only some time after the
approach would have been to develop monitoring tools project is implemented. Caution would be necessary,
collaboratively with each partner, adapting existing however, to (1) ensure that an adequate counterfactual
institutional-learning tools and principles to each part- analysis could be done; (2) capture unintended outcomes
ner’s specific management needs. In hindsight, the that may take place away from the original project site;
scoreboard parameters appear ambiguous and poorly and (3) fully interrogate theories of change and investi-
framed. gate causal links to impacts observed.
MODULE 7: INNOVATIVE ACTIVITY PROFILE 6: MONITORING AND EVALUATION IN THE FODDER INNOVATION PROJECT 613
INNONTOEVX
AT. XI V E A C T I V I T Y P R O F I L E 7
SYNOPSIS research findings but that the findings produced more limited
social and economic impacts than expected. In July 2006,
he Research Into Use (RIU) program, designed with
614
certainly yielded direct developmental outcomes, they RIU incorporated two further elements: a communica-
were most noteworthy for the extensive institutional tions and a research function. The research team, distrib-
changes they stimulated. uted across Asia and Africa, was mandated to draw key
■ The Africa Country Programmes (ACPs) were established policy lessons to inform national and particularly interna-
in Malawi, Nigeria, Rwanda, Sierra Leone, Tanzania, and tional development investors about better strategies for put-
Zambia with the explicit agenda of brokering new clus- ting agricultural research into use.
ters of organizations around selected R&D themes. This
agenda was based on the recognition that developmental
INNOVATIVE ELEMENT: MONITORING AND
and market-based opportunities often arise and can use
EVALUATING DEVELOPMENTAL AND
research expertise and findings, but institutional inertia
INSTITUTIONAL CHANGE
often prevents an appropriate mix of organizations,
knowledge, and resources from assembling to innovate RIU set targets for development (outcomes measured in
in response to such opportunities. The ACPs used inno- terms of benefits to poor people) and institutional and pol-
vation platforms and other dialogue mechanisms as icy change (outcomes measured in terms of changes in key
starting points to identify opportunities and help orga- stakeholders’ behavior in the innovation process and
nizations link with each other. Some of the initiatives changes in policies that shape the national and international
brokered in this way included a smallholder indigenous innovation environment). The emphasis given to these out-
poultry value chain in Tanzania, an improved fish finger- comes shifted in the latter part of the project, when a 70 per-
ling supply chain in Malawi, and an integrated livestock cent impact weighting was assigned to institutional and pol-
fodder and vet service arrangement in Nigeria. With the icy outcomes.
ACPs’ broad, opportunity-driven agenda, many unex- The challenge for RIU was to monitor institutional and
pected adaptations took place as organizations in the policy changes and direct developmental outcomes, even
consortiums found new ways of working with each though it was recognized that developmental outcomes
other, such as new financing mechanisms, new roles for would not arise on a significant scale until after the project
research partners, and new ways of influencing policy. ended. The task was even more challenging because the
Existing research products (and research expertise) were interventions evolved a great deal to reflect the emerging
put into use in these initiatives, and their developmental understanding of how to put research into use and to take
outcomes were recorded, but the main outcomes from advantage of emerging opportunities to do so.
the ACPs were institutional. Part of the challenge lay in the tension over whether
■ The Best Bets. RIU envisaged that it would identify Best RIU was a developmental or institutional change initia-
Bet technologies for scaling up, but quickly it shifted to tive. Management and staff changes brought differing
identifying best bet business models and unique consor- views on this point, which had implications for how M&E
tiums that successfully combined enterprise principles was addressed. A consensus eventually emerged that RIU
(specifically, a focus on the poor as a market for products needed to track developmental as well as institutional
and services) with science-Based innovation. The outcomes. Because RIU was implemented before there
approach proved useful for tapping the ability of entre- was much experience, confidence, or consensus in the use
preneurs with social credentials to marshal research and of methods that could address those two outcomes
other knowledge, resources, and partners to create busi- together, the M&E task was largely exploring new ground.
ness innovations that addressed issues as diverse as sleep- The next sections describe the resulting experience and
ing sickness control, farm input supplies, and biological learning.
control of an aggressive parasitic weed (Striga). Support
for these businesses created capacity for continuous
EXPERIENCE
innovation around the themes covered. Having focused
on supporting existing enterprise-like organizations and Following advice from the donor, RIU initially set aside one-
consortiums, the Best Bets were better placed than other third of its budget for the combined task of monitoring
RIU interventions to achieve direct developmental out- impact and learning (MIL). A specialist group was brought
comes. Institutional change was also anticipated, however, in to design and implement an M&E plan, which had two
as many of the organizations involved were encouraged notable elements. The first was a baseline survey for the ACF
to assume new roles in the innovation process. projects and ACPs to conduct (the Best Bet projects had not
MODULE 7: INNOVATIVE ACTIVITY PROFILE 7: MONITORING AND EVALUATION IN THE RESEARCH INTO USE PROGRAM 615
yet started). The second element was that projects were asked to find a suitable evaluator. An evaluator was finally identi-
to record the events unfolding around their interventions. fied and appointed early in 2010, when RIU had about 15
The data were sent to the UK-based MIL group for analysis. months left to run.
The impact assessment team (as RIU described it) would
assemble evidence about outcomes to substantiate lessons
A new management team and M&E strategy
that the research team was developing as well as to report to
A midterm and subsequent technical review of RIU were the donor for accountability. Responding to the donor’s
critical of the MIL approach, noting that the baseline exer- demands, however, the impact team assumed a more
cise was particularly burdensome and provided no clear broadly conceived evaluative role, exploring the effective-
feedback to the ACF or ACPs. Following these reviews, a ness of project cycle management and reporting its findings
new management team was brought into RIU at the begin- to the donor.
ning of year four of RIU’s five-year program. The MIL The impact team also developed a learning approach,
group disbanded, a new M&E strategy was put into place, drawing on the Theory-Based Impact Evaluation meth-
and ACF projects and ACPs became responsible for moni- ods developed by Howard White and the 3IE group to
toring their progress as they saw fit. assess developmental impacts, explore RIU’s theory of
Some projects continued baseline and follow-up studies change, and revisit its assumptions (for a brief descrip-
and tracking. For example, a project promoting varieties tion of the methods, see box 7.19 in TN 5; see also White
developed through client-oriented breeding found those 2009a, 2009b). Information was collected through house-
studies useful for targeting, because they identified agrocli- hold surveys in selected countries and extensive inter-
matic zones where adoption patterns indicated that the new views were conducted with RIU staff and stakeholders in
varieties performed well and were acceptable to farmers. RIU focus countries. Box 7.27 summarizes key elements
Others found the approach less useful or did not see it as a of the evaluation framework.
priority and stopped.
Problems encountered
Impact assessment
The impact team’s dual responsibilities for accountability
The new M&E strategy specified that RIU would appoint an (judging the effectiveness of RIU’s implementation) and
independent team to assess impact. Initially RIU struggled learning (helping RIU to understand its impact over time)
Box 7.27 Key Elements of the Framework Used to Evaluate Research Into Use
The impact assessment team developed a series of ■ Efficiency. To what extent was the RIU’s informa-
questions to examine the theory of change embedded tion management system (including the M&E sys-
in the interventions of Research Into Use (RIU). The tem) fit-for-purpose? How did RIU assess the
following are the main categories of questions posed: progress of innovations and their contribution
(both positive and negative) to building knowledge
■ Overarching question. Has the underlying theory of and addressing market failures?
change—that “new forms of partnership will lead to ■ Effectiveness. What partnership arrangements were
innovation (which in turn will contribute to poverty most effective in understanding and addressing the
reduction and economic growth)”—been shown to barriers to innovation, both nationally and locally,
be appropriate? and why? What partnership arrangements are effec-
■ Relevance. Given its theory of change, was RIU’s tively ensuring that the innovation process focuses
design appropriate to explore how to put research on the issues of gender and social exclusion? Was the
into use? Was the program’s design appropriate to its research monitoring system effective?
ambition to impact on poor people? ■ Impact. To what extent has RIU impacted poor people?
Research Into Use (RIU) recognized that it needed to tory were sorted into groups to arrive at broad cate-
track institutional change, but what sort of institu- gories of institutional change. Illustrative indicators of
tional change should be tracked? Given that innovation each type of change were developed, and this frame-
is embedded in a very wide range of relationships in work was used for deeper investigation and documen-
economic systems, the range of institutions that are tation of institutional changes through case studies and
important in the innovation process is likely to be writeshops.
equally large and varied. Some areas of expected insti-
tutional change are very obvious—for example, ■ New ways of financing rural innovation.
changes in research practice or changes in patterns of ■ New, poverty-relevant ways of working or organiz-
partnership—but because RIU operated in complex ing things.
development arenas, some institutional changes would ■ Market-related institutional changes.
be difficult to predict from theory alone. ■ Existing types of organizations playing new roles.
The broad categories of change listed below were ■ New types of organizations playing new roles.
identified through a rapid inventory of institutional ■ Changes in research practice.
changes observed in association with RIU’s activities. ■ Changes in the policy formulation space/process.
Institutional changes were defined as things that were ■ Effects on donor/government investment behavior.
being done differently as well as changes in formal poli- ■ New network configurations.
cies and rules. The institutional changes in the inven- ■ Formal policy changes.
were managed insensitively. The accountability function RIU responded to these findings in a number of ways. It
was perceived as a policing exercise and tended to impede changed its quarterly reporting formats to include institu-
the learning function, preventing the sharing of informa- tional change issues. It developed a framework to categorize
tion and perspectives. Frequent changes in the impact team, and track an expanding range of different types of institu-
including its leader, exacerbated this problem. tional change (box 7.28; Adwera et al. 2011). Institutional
The evaluators and RIU disagreed about the RIU’s the- histories of the ACPs were commissioned to develop a
ory of change. Evaluators articulated it as “partnerships lead deeper understanding of how they promoted innovation
to innovation,” whereas RIU articulated it as “institutional (box 7.29). Finally, writeshops helped staff implementing
and policy change will enable innovation.” The evaluators interventions to record institutional changes and unexpected
found that it was too early to collect the impact data needed outcomes and use the writeups to engage other stakeholders.
to satisfy the Theory-Based Impact Evaluation approach
that inspired the design of the evaluation. In other words, an
LESSONS LEARNED: WHAT COULD
impact evaluation was premature.
HAVE BEEN DONE DIFFERENTLY?
MODULE 7: INNOVATIVE ACTIVITY PROFILE 7: MONITORING AND EVALUATION IN THE RESEARCH INTO USE PROGRAM 617
Box 7.29 Rationale and Approach for Innovation Studies Based on Institutional Histories
of Africa Country Programmes
The Africa Country Programmes (ACPs) of Research prominence of core concepts and the way this evo-
Into Use (RIU) used innovation platforms as one means lution played out in RIU’s strategy, with particular
of enabling innovation. RIU commissioned institutional emphasis on the ACPs.
histories of the ACPs to understand the specific details of ■ A detailed institutional history of the ACPs, empha-
how the various innovation platforms were designed and sizing how they organized their work, learned along
functioned in each setting and to learn how each ACP the way, and evolved in response to the evolution of
functioned as a broking or intermediary organization RIU and the local development, political, and insti-
within the wider innovation and development land- tutional environment.
scape. The decision to use institutional histories reflected ■ A detailed account (in accessible language) of the
the fact that the arrangements and approaches used in nature, role, and function of the intermediary/
each program evolved significantly. All programs took brokering task, including the innovation platforms,
advantage of a range of opportunities; some approaches to explain what brokering involves.
were less effective than others, but all were instructive. ■ Based on those accounts, develop guiding principles
The resulting institutional histories contributed to inno- for designing a program enabling intermediary
vation studies with the following elements: agencies/brokers to catalyze innovation and put
research into use.
■ A short institutional history of the evolution of RIU,
with a strong focus on understanding the changing
data (an evaluation function) and, in the process, fully. In this sense, the baseline studies may yet prove
impeded progress on the action part of its interventions. valuable for post-program evaluation, although a more
The expectations of the donor were also important: appropriate approach would have been for RIU to com-
Donors should be realistic about the type and scale of mission the design and execution of the baselines inde-
outcomes likely to be evident in the action-to-impact pendently of the interventions. Then the evaluators
results chain during the life of an intervention. This could have repeated the surveys after the program ended.
statement does not mean that interventions should not ■ Develop a systematic monitoring plan. Monitoring
track their performance; it means that tracking and man- progress toward institutional and developmental targets
aging performance will require data different from the is challenging and requires technical backstopping so
data needed for assessing an intervention’s final impact. that projects can perform this function as an integral
A suite of well-executed qualitative methods and rapid part of their management. Those who need to act on the
quantitative surveys would have been much more useful information generated should have ownership of the
to the ACF projects and ACPs as a way of monitoring and monitoring role: Responsibility should lie with the indi-
generating feedback on the effectiveness of their actions. vidual projects rather than the central program. Pro-
■ Time the evaluation carefully. The impact team initiated grams should have specific M&E expertise to help
its activities prematurely. It could be argued that the design integrated monitoring strategies for others to use
effectiveness of program cycle management could be rather than to collect data for the M&E expert to ana-
investigated only when the program was still on the lyze. A very large suite of techniques is available for
ground, but the final impact needs to be explored after exploring institutional change and understanding rela-
the program has come to an end. The nature of RIU, with tionships between process and outcome (TN 4). The key
its emphasis on achieving impact by stimulating institu- is to have expertise that is sufficiently familiar with this
tional and policy change, suggests that this time lag is suite of methods to adapt principles and tools to the
particularly important. Since this route to impact is com- specific monitoring needs of each project in the larger
plex, chains of causation will need to be explored care- program.
MODULE 7: INNOVATIVE ACTIVITY PROFILE 7: MONITORING AND EVALUATION IN THE RESEARCH INTO USE PROGRAM 619
NOTES collaboration with United Nations University-Maastricht
Economics and Social Research Institute on Innovation
Thematic Note 1
and Technology (UNU-MERIT), the International Center
1. See, for example, the G20 press release on its September for Crop Research in the Semi-Arid Tropics (ICRISAT),
2011 Ministerial Meeting on Development (G20 2011a) and and the International Institute of Tropical Agriculture
progress on the Global Conferences on Agricultural (IITA).
Research for Development process (http://gcardblog.word-
press.com/; FAO 2011).
Innovative Activity Profile 7
2. For further information on conventional methods of
priority setting and investment in agricultural R&D see 1. The author was head of RIU’s Central Research Team.
Tabor, Janssen, and Bruneau (1998), Contant (2001), and
Alston, Norton, and Pardey (1995).
3. World Bank (2007) identifies three main contexts for REFERENCES AND FURTHER READING
innovation: (1) agriculture-based countries (mainly in
sub-Saharan Africa) where farmers lack access to well- Module 7 Overview
functioning agricultural markets; (2) transforming coun- Alston, J. M., G. W. Norton, and P. G. Pardey. 1995. Science
tries (mainly in South Asia, East Asia and the Pacific, the Under Scarcity: Principles and Practice for Agricultural
Middle East, and North Africa) where agricultural markets Research Evaluation and Priority Setting. Ithaca: Cornell.
are developing and some farmers gain from good connec-
Edquist, C. 1997. Systems of Innovation, Institutions, and
tions to markets; and (3) mature innovation countries
Organizations. London: Pinter Publishers.
(most countries in Latin America and the Caribbean and
many in Europe and Central Asia) where agricultural mar- Gijsbers, G., W. Janssen, H. Hambly Odame, and G. Mei-
kets function relatively efficiently and farmers are effective jerink. 2000. Planning Agricultural Research: A Source-
market players. book. The Hague: International Service for National
Agricultural Research (ISNAR).
Hall, B. H., and J. Learner. 2010. “The Financing of R&D and
Thematic Note 3 Innovation.” In Handbook of the Economics of Innovation,
1. For example, see the discussion of scenarios developed edited by B. H. Hall and N. Rosenberg. Amsterdam: Else-
under India’s National Agricultural Innovation Project on vier. Pp. 610–38.
the future of agriculture in India (http://www.naip.icar.org Hall, B. H., and N. Rosenberg. 2010. “Introduction to the
.in/workshops2.htm). Handbook.” In Handbook of the Economics of Innovation,
edited by B. H. Hall and N. Rosenberg. Amsterdam: Else-
vier. Pp. 3–9.
Innovative Activity Profile 3 OECD (Organisation for Economic Co-operation and
1. Fundación PROINPA (Promoción e Investigación de Pro- Development). 1986. “Glossary of Terms Used in Evalua-
ductos Andinos) (www.proinpa.org/); Programa Nacional de tion.” In Methods and Procedures in Aid Evaluation. Paris.
Raíces y Tubérculos rubro Papa (PNRT-Papa), Instituto ———. 1991. Principles for Evaluation of Development
Nacional Autónomo de Investigaciones Agropecuarias Assistance. Paris.
(INIAP) (www.iniap-ecuador.gov.ec/); and Innovación tec- ———. 2000. Glossary of Evaluation and Results-Based
nológica y competitividad de la papa en Per (INCOPA) Management (RBM) Terms. Paris.
(www.cipotato.org/papandina/incopa/incopa.htm). Pardey, P. G., J. M. Alston, and V. Ruttan. 2010. “The Econom-
2. See “A Quest for the Perfect Potato” (Newsweek 2008), ics of Innovation and Technical Change in Agriculture.” In
Mapstone (2010), and the August 2010 speech by Pepsi-Co Handbook of the Economics of Innovation, Vol. 2, edited
Chairperson and CEO Ms. Indra Nooys (http://www.pepsico by B. H. Hall and N. Rosenberg. Amsterdam: Elsevier.
.com/assets/speeches/IndraNooyiPeruReception-2010.pdf). Pp. 939–84.
World Bank. 2011. Information and Communication Tech-
Innovative Activity Profile 6 nologies for Agriculture e-Sourcebook. Washington, DC.
Action-research. An iterative process of diagnosis, planning, leges of agriculture within comprehensive universities) in
action, evaluation, and reflection. addition to the polytechnics, institutes, or colleges that pre-
Adaptive management. “A structured, iterative process of pare technicians at the diploma level (postsecondary, sub-
optimal decision making in the face of uncertainty, with degree level). This second category of education, often
an aim to reducing uncertainty over time via system termed agricultural technical–vocational education and
monitoring” (http://en.wikipedia.org/wiki/Adaptive_ training (ATVET), technical–vocational education and
management). Adaptive management functions as a tool training (TVET), or vocational education and training
for learning as well as change within a system: As new (VET), prepares technicians in a variety of specializations
information emerges, the system uses it (actively or pas- in agriculture subsectors. Some secondary schools offer
sively) to change its operations and improve outcomes over agriculture as an elective. Agricultural training, frequently
the long term. The management process includes present in training centers or training institutes, is offered to pub-
and future stakeholders, bases iterative decision making on lic employees as in-service training and/or to farmers as
the results of monitoring (learning), and regards uncer- farmer training. Although the various elements in the AET
tainty as a means of improving understanding. delivery chain are often referred to collectively as a “sys-
Advisory services. Agricultural advisory services can be tem,” they do not necessarily form a robust system in which
defined as the entire set of organizations that support communication and feedback flow between institutions
and facilitate people engaged in agricultural production and allow for continuous improvements. Many countries
to solve problems and to obtain information, skills, and divide responsibility for AET between the ministries of
technologies to improve their livelihoods and well-being. agriculture and education.
See also agricultural extension. Agricultural extension. The entire set of organizations that
Agricultural education and learning (AEL). A variation on support and facilitate people engaged in agricultural
agricultural education and training that reflects a more production to solve problems and to obtain information,
student-centered approach to formal programs. skills, and technologies to improve their livelihoods and
Agricultural education and training (AET). Organized pro- well-being.
grams and activities that serve the need for information, Agricultural knowledge and information system (AKIS). A sys-
knowledge, and skills among those who work in various tem that links people and institutions to promote mutual
parts of the agriculture sector and the broader rural space. learning and generate, share, and utilize agriculture-
An AET system typically consists of tertiary educational related technology, knowledge, and information. The sys-
institutions (agricultural universities or faculties and col- tem integrates farmers, agricultural educators, researchers,
629
and extensionists to harness knowledge and information clients in setting priorities and financing, executing, and
from various sources for improved livelihoods. Farmers evaluating research. See matching grants.
are at the heart of this knowledge triangle. Contracting. When one organization contracts with another
Agricultural innovation system (AIS). A network of organi- to perform a function or service. Contracting in occurs
zations, enterprises, and individuals focused on bringing when research, extension, and other government agricul-
new products, new processes, and new forms of organi- tural services provide services for an external group, such
zation into economic use, together with the institutions as a nongovernmental organization or a private organi-
and policies that affect their behavior and performance. zation. Contracting out is when government hires an
Agricultural technical–vocational education and training external organization to perform services.
(ATVET). See agricultural education and training. Cooperative extension. An extension model developed in the
Business development services (BDS). A range of nonfinan- U.S. university system, in which universities, linked to the
cial services provided by public and private suppliers to extension system, produce research results that are dis-
entrepreneurs, who use them to operate more efficiently seminated to farmers.
and expand their businesses. BDSs can include training, Cost sharing. When users of services pay at least a partial
consultancy, and advisory services, marketing assistance, amount of the cost.
information, technology development and transfer, and Decentralization. Moving responsibility and/or funding of
business linkage promotion. public governmental services to local administrative lev-
Business incubators. Programs designed to accelerate the suc- els such as districts. Decentralization can take many
cessful development of entrepreneurial activities through forms, such as deconcentration (accountability remains
an array of business support resources and services, within the Department of Agriculture), devolution to
developed and orchestrated by incubator management local governments (accountability is transferred from
and offered both in the incubator and through its net- central to locally elected governments), or delegation to
work of contacts. Incubators vary in the way they deliver semiautonomous services.
their services, in their organizational structure, and in the Demand articulation. Identifying the needs of different user
types of clients they serve. groups for the knowledge and information produced by
Central nodes. In the terminology of social network analysis, agricultural research organizations or the services
well-connected partners who pull promising new entrants (credit, advice) provided by other types of organizations.
into networks and collaborate with a wide assortment of Downstream research. Usually refers to research that adapts
partners, exposing them to more experiences, different a technology (agronomic practice, new variety) to a par-
competencies, and added opportunities. By linking clus- ticular country’s or locality’s needs. Sometimes called
ters of network actors, the central nodes facilitate flows applied or adaptive research.
of information and resources. Innovation brokers are par- Economies of scale. In agricultural research, economies of
ticularly prepared to become central nodes. scale occur when the cost per unit of research output falls
Change agent. See innovation broker. with the number of units of output produced, usually
Commercialization or commercial services. A focus in the through better use of major fixed investment or special-
agricultural research and extension system on commer- ized skills.
cial crops or the provision of services for specific cash Economies of scope. In agricultural research, economies of
crops such as tobacco or cotton. scope occur when the cost of a desired output falls with
Commodity extension. An extension system focused on one an increase in the number of different research outputs
cash crop, for which advice and inputs are provided by being produced. These gains occur when there is cross-
one institution. commodity or cross-disciplinary learning as an external
Competitive research grants (CRGs). Grants that fund economy.
research based on national competition and scientific Embedded services. Companies provide information with
peer review. Transparent procedures are used to select the inputs they sell or other products they market.
the proposals that will receive funding, based on rigorous Enabling environment. The environment (political, regula-
criteria. Well-designed grants can bring greater contesta- tory, institutional, economic, and social) that supports,
bility to the innovation process; the funding may not promotes, and sustains a given outcome. For agricultural
necessarily flow to the traditional recipients. Grants can innovation, an enabling environment comprises those
promote research partnerships, leverage research factors that influence agricultural innovation positively
resources, and help to develop a more efficient, demand- but are controlled by policy domains other than agricul-
driven, and pluralistic research system by involving tural innovation policy itself.
630 GLOSSARY
Farm business schools. Schools that facilitate learning on that will allow it to remain in business for an indefinite
production, management, business finance, and market- period.
ing skills. Farm business schools and cooperatives have Governance. The systems and practices that governments
an important learning role in promoting entrepreneur- use to set priorities and agendas, design and implement
ship among farmers, but initially they require external policies, and obtain knowledge about their impacts.
facilitation. Also refers to any systems and practices performing
Farmer organization or producer organization. An organiza- the same function at the subnational level (provincial
tion constituted by farmers who seek solutions to produc- research institutes, input subsidy programs) and in
tion or commercial problems. Some agricultural services smaller institutions (farmer organizations, irrigation
focus on providing extension, conducting research, or schemes).
offering other services through these organizations. Green revolution. The enormous increases in cereal produc-
Farmer field school. A participatory method of learning, tion resulting from the adoption of high-yielding wheat,
technology development, and dissemination based on maize, and rice varieties, grown under irrigation with
adult-learning principles such as experiential learning. fertilizer and other inputs, across large areas of Asia and
Typically groups of 20–25 farmers meet weekly in an Latin America from the 1960s to 1980s.
informal setting on their farms with a facilitator. The Group-based approach. Extension programs that work with
defining characteristics of farmer field schools include farmer groups or other common interest groups.
discovery learning, farmer experimentation, and group Industry clusters. Agglomerations of strongly interdependent
action. This interactive, practical training method firms (including specialized suppliers) linked to each other
empowers farmers to be their own technical experts on in a value-adding production chain, service providers, and
major aspects of their farming systems. Farmers are facil- associated institutions in a particular field. Some clusters
itated to conduct their own research, diagnose and test encompass strategic alliances with universities, research
problems, devise solutions, and disseminate their learn- institutes, knowledge-intensive business services, bridging
ing to others. institutions (brokers, consultants), and customers. Clus-
Farmer field school networks. Networks of informal or for- ter-based approaches for business development and
mal groupings with a common interest that draw their innovation have increased agricultural productivity,
membership from all the farmer field schools within a innovation, and business formation.
given geographic or administrative boundary. Information and communications technology (ICT). The wide
Farming systems research and extension (FSRE). System of and growing array of modern communications technol-
research and extension that is focused on understanding ogy such as the Internet, e-mail, electronic databases,
the farming systems of small-scale farmers through mobile phones and telephones, computers, personal digi-
applied, multidisciplinary, on-farm, farmer-centered tal devices, radio-frequency infrared devices, and the
research. related infrastructure to support it (wireless networks,
Fee for service. The provision of services for a cost by gov- fiber-optic cable, and so on).
ernment, nongovernmental, or private organizations. Innovation. An invention that is used for the first time in a
Genetically engineered. A genetically engineered or modified product that reaches the market or produces a change in
organism in which the genetic material has been trans- a social process. An innovation that is well known else-
formed using the techniques of genetic engineering. where may still be regarded as an innovation if it is new
These techniques combine DNA molecules from different locally.
sources into one molecule to create a new set of genes. Innovation brokers. Teams of specialists that combine a
This recombined DNA is then transferred into an organ- strong background in science with knowledge of busi-
ism, giving it modified or novel genes. Transgenic organ- ness and commercialization and/or the creation of inno-
isms, a subset of genetically modified organisms, carry vation networks. Innovation brokers are also known as
DNA that originated in a different species. Examples change agents or technology brokers.
include cotton that has been genetically transformed to Innovation capabilities. The skills to build and integrate
resist a particular herbicide. Many countries strictly con- internal and external resources to address problems or
trol the production, use, export, and import of genetically take advantage of opportunities. Innovation capabilities
modified plants and animals. (Based on http://en.wiki depend not only on innovative individuals but also on
pedia.org/wiki/Genetically_modified_organism.) internal features of an organization, especially incentives,
Going concern. An enterprise that is expected to generate cultures, organizational spaces for experimentation,
sufficient revenues and manage its resources in a manner coordinating structures, and collective action.
GLOSSARY 631
Innovation-led growth. Growth based on innovative tech- information services, technology, and business linkage
nologies, processes, products, markets, or organizational information. Also referred to as value-chain oriented
arrangements rather than on large additional uses of nat- services, market-oriented agricultural advisory services,
ural resources. and marketing extension.
Innovation network. A diverse group of actors that voluntar- Marketing chain. Modern marketing chains for agricultural
ily contribute knowledge and other resources (such as crops have many features of buyer-driven value chains:
money, equipment, and land) to develop jointly or an actor close to consumers (usually a supermarket or
improve a social or economic process or product. Inno- broker) dominates, organizing many producers and
vation networks are a special form of organization with intermediaries, deciding who participates in the chain,
a nonhierarchical structure, a collaboration-based cul- overseeing all the links from the farm to the shelf,
ture, consensus-based coordination (because members defining the nature of the interactions and commercial
are free to leave the network at any time), usually no legal conditions, and setting quality and safety standards.
personality (especially in their early stages), and often Other important features of modern marketing chains
relatively fuzzy objectives (such as improving the man- are that they focus on marketing specific products (such
agement of natural resources). They evolve with market as vegetables, fruits, meat), access to the chain is highly
opportunities and the technologies they develop. Inno- restricted, verbal contracts based on trust are common
vation networks differ from farmer organizations in that but informal transactions rare, and technologies are
farmer organizations have a homogeneous membership generated mostly in developed countries and imposed
and more formal, stable relations. Innovation networks by the leading agent. Only farmers with strong capa-
differ from value chains in that the latter are more stable, bilities for innovation (especially entrepreneurship,
are focused on delivering a product or service, and are physical and financial resources, and social capital) can
coordinated by a central actor. Innovation networks are survive in the highly competitive environment of mod-
also known as innovation platforms. ern marketing chains.
Innovation platform. See innovation network. Matching grants. The matching of funds from the granting
Intellectual property rights (IPRs). Intellectual property law organization (usually a public agency) with funds from
grants owners of intellectual property (creations of the the beneficiary. Matching grants increasingly promote
mind) certain exclusive rights to a variety of intangible near-market technology generation, technology transfer
assets, such as musical, literary, and artistic works; discov- and adoption, private economic activity, and overall
eries and inventions; and words, phrases, symbols, and innovation, often by including multiple stakeholders. By
designs. Common types of intellectual property include focusing greater attention on demand and use from the
copyrights, trademarks, patents, industrial design rights, very beginning, basically by attracting users of technolo-
and trade secrets. See tangible property rights. (Based on gies and knowledge in partnerships (and requiring a
http://en.wikipedia.org/wiki/Intellectual_property.) matching commitment), matching grants may be more
Intervention logic. The underlying assumptions in an interven- effective than competitive research grants at enhancing the
tion that link intervention inputs with expected outcomes. use of technology and knowledge by farmers and other
entrepreneurs.
Invention. The creation of knowledge. An invention
becomes an innovation only when it is first used in a National agricultural research system (NARS). The entities
product that reaches the market or produces a change in responsible within a given country for organizing, coor-
a social process. dinating, or executing research that contributes explicitly
Learning alliance. A process-driven approach that facilitates to the development of the country’s agriculture and
the development of shared knowledge among different maintenance of its natural resource base.
actors. Learning alliances contribute to improved develop- National innovation policy. Overarching policies coordinat-
ment outcomes because lessons are more quickly identi- ing a wide spectrum of policy domains—science and
fied and learned and because stronger links among technology policy, education policy, economic policy,
research organizations and other actors in the AIS industrial policy, infrastructure policy, taxation policy,
improve the focus on research and development practices. and justice policy, among others—in such a way that
Local agribusiness development services. Services that together they create an environment that enables and
improve the performance of a small-scale enterprise stimulates innovation. Sector-specific innovation poli-
oriented to agricultural production, be it individual or cies (such as a policy for agricultural innovation) repli-
cooperative, in accessing markets, financial services, and cate the national innovation policy’s overarching and
enhanced agribusiness environments. Examples of these coordinating nature but have considerably less political
services include training and advisory services, market clout to influence policies outside their domains.
632 GLOSSARY
Niche markets. A small, specific, and well-defined subset they are hierarchical or allow individual exploration of
of the market on which a particular product focuses. opportunities and horizontal communication); learning
Examples include markets for fair trade, organic, or other routines (the heuristics and methods used for collectively
products certified to have particular qualities; small-scale accepting new ideas and procedures); the propensity to
growers of particular kinds of produce purchased directly interact and cooperate with other actors in the AIS; and
by consumers in a nearby city; a new market for a tradi- the availability of resources for the development of inno-
tional product (quinoa, amaranth, and acai are three of vations (capital and specialized assets).
many kinds), or a new product derived from a traditional Organizational interface. Modalities that help to transform
crop. Some niches have more demanding quality and knowledge and information produced by research
commercial requirements than others, and farmers’ par- organizations into socially and economically relevant
ticipation in these markets depends on whether they can goods and services. Examples include innovation plat-
meet those requirements. Although niche markets have forms, value-chain approaches, and public-private partner-
had important impacts on local communities, they can- ships.
not expand beyond a certain size without becoming com- Outgrower. A farmer operating under a formal or informal
moditized. For this reason, they can make only a limited agreement (often a contract) to grow produce for a com-
contribution to alleviating poverty. Niche markets can be mercial agricultural enterprise (for example, a sugarcane
considered a form of innovation network. processor) or a large-scale farmer. Outgrowers may
Nongovernmental organization (NGO) extension. Extension receive credit and advice from the processor.
systems run by NGOs, often in a project mode and Participatory or demand-driven approaches. Method of
focused on participatory methods. research and/or extension focused on bottom-up
No-till agriculture. An agronomic practice in which crops approaches and empowerment of clientele. These
are planted in previously unprepared soil by opening a approaches include methods such as farmer field schools
narrow slot or trench of the smallest width and depth and farmer research groups.
needed to obtain proper coverage of the seed. Conven- Pluralistic extension. Extension system based on multiple
tional tillage practices involve multiple tractor passes to service providers, including public, private, and civil
accomplish plowing, harrowing, planking, and seeding society organizations, in which the focus is often on
operations; no-till requires only one or two passes for demand-driven, participatory approaches.
spraying herbicide and seeding. In addition to reducing
Privatization. Full transfer of ownership (usually by sale)
the number of operations, no-till requires less-powerful
from government to a private entity.
tractors and reduces equipment depreciation. While
no-till principles are the same everywhere—entailing Privatized research or extension services. Services run for
minimal soil disturbance, keeping soil covered, and profit, not necessarily for cash crops only.
using crop rotations—the actual packages differ greatly Producer organizations. See farmer organization.
by location. Public-private partnerships. At least one public and one pri-
Organization. A group of actors that collaborate over a sus- vate organization share resources, knowledge, and risks
tained period. An organization can be either formal or to achieve a match of interests and jointly deliver prod-
informal. Collaboration may take different forms, ucts and services. In agricultural research, PPPs bring
including frequent exchanges of information, joint pri- together partners with different skills and knowledge to
ority setting for policies and programs, and joint imple- contribute jointly to the generation, adaptation, and/or
mentation of innovation projects. diffusion of an innovation. Usually the partnership
Organizational capabilities for innovation. The abilities of the agreement is in the form of a contract that establishes
organization’s members and the organization’s key charac- each partner’s commitments and the distribution of ben-
teristics. Organizational abilities for innovation include efits. PPPs in agricultural research can be set up not only
maintaining specialized knowledge, creativity, and com- to generate knowledge via research but also to foster the
mitment to the organization; developing a long-term diffusion and application of knowledge among private
vision for the organization; absorbing information gen- actors (agribusiness, farmers) and public actors (univer-
erated by other agents (also called the absorptive capac- sities, research institutes, and extension agencies).
ity); creating new knowledge; and using this knowledge Qualitative growth. Growth associated with a range of addi-
to develop innovations that address commercial, social, tional public goods that especially reduce extreme
organizational, or technological needs or opportunities. poverty, provide food security, narrow structural
An organization’s key characteristics include its culture, inequalities, protect the environment, or sustain the
governance, and communications routines (whether growth process itself.
GLOSSARY 633
Risk capital. Money explicitly available for investment into a Strategic alliances. Partnerships that usually involve long-
high-risk business or a security of some type—typically term cooperation (10 or more years), multinational
those that are not publicly traded on any national stock companies, or groups of companies. Examples include
exchange. In this sourcebook, risk capital refers to invest- the development and introduction of minimum social
ment in a company or project at an early or high-risk and environmental standards for agricultural or forestry
stage. Private investors are the major sources of risk cap- products, fair trade arrangements, and similar ambitious
ital; public investment cannot meet the needs, although programs.
it can stimulate and leverage private investment in the Tangible property rights. The set of rights defined by law that
sector. See venture capital. relate to a physical object, for example plasmids or vec-
Rural productive alliance. An economic agreement between tors. See intellectual property rights.
formally organized producers and at least one buyer, which Technical regulations. Regulations that specify product
specifies product characteristics (such as size and varieties characteristics or their related processes and production
to be produced); quantity to be produced or bought; pro- methods, including the applicable administrative provi-
duction modalities (such as how a product will be deliv- sions, with which compliance is mandatory. Technical
ered, by whom, and when, as well as grading and packing regulations include import bans (total or partial), tech-
requirements); payment modalities and price determina- nical specifications (process and product standards),
tion criteria; and the buyer’s contribution (such as techni- packaging standards, information requirements, and
cal assistance, specific inputs, and arrangements for input requirements for labeling and claims. See standards.
reimbursement—for example, at the time of sale). Technology broker. See innovation broker.
Sanitary and phytosanitary (SPS) protection. Measures, Theory of change. The underlying assumptions in an interven-
including regulations and agreements, to protect: tion that link intervention inputs with expected outcomes.
(1) human or animal health from risk arising from
Traditional extension system (general extension). Extension
additives, contaminants, toxins, or disease organisms in
focused on increasing agricultural productivity, run by
food, drink, and feedstuffs; (2) human life from risks asso-
central government, using a top-down approach and
ciated with diseases carried by plants or animals; (3) animal
often emphasizing the transfer of technology.
or plant life from pests, diseases, and disease-causing
organisms; and (4) a country from other damage caused by Training and visit (T&V). A system of extension manage-
the entry, establishment, or spread of pests. Such measures ment with a focus on improving technical knowledge of
include national control of contaminants, pests, and dis- extension agents and regular visits to farms.
eases (vaccination programs, limits on pesticide residues Transfer of technology (TOT). Programs focused on dissemi-
in food) as well as international controls to prevent their nating information and new technologies. Such programs
inadvertent spread (for example, the rejection of insect- often include an integrated approach in which technology
infested food shipments that pose a risk to domestic food is pushed as a package deal with the requisite institutional
production). See standards and technical regulations. support, such as credit and fertilizer facilities.
Social capital. The institutions, relationships, and norms that Value chain. The set of linked activities pursued by the dif-
shape the quality and quantity of a society’s social interac- ferent actors that a firm organizes to produce and market
tions. Increasing evidence shows that social cohesion is a product. See also marketing chain.
critical for societies to prosper economically and for devel- Value-chain approach. Attention to improving efficiency
opment to be sustainable. A narrow view of social capital along the value chain for a particular agricultural com-
regards it as a set of horizontal associations between peo- modity, often through applied agricultural research
ple, consisting of social networks and associated norms integrated with institutional innovations in farmer
that have an effect on community productivity and well- organization and marketing.
being. Social networks can increase productivity by reduc- Venture capital. Venture capital is a form of private equity
ing the costs of doing business. Social capital facilitates provided for early-stage and more mature companies
coordination and cooperation. This quality is strong with substantial market potential. Returns on venture
within mature groups with strong internal institutions, capital investment are from a trade sale (sale to, or
intragroup trust, altruistic behavior, membership in other merger with, another company) or an initial public offer-
groups, and ties to external service providers. ing in which the company becomes authorized to sell its
Standard. A document approved by a recognized body that stock to the general public on a stock exchange. Venture
provides, for common and repeated use, rules, guide- capital funds will not only provide money but will men-
lines, or characteristics for products or related processes tor their investee firms. See risk capital.
and production methods, with which compliance is not Vocational education and training (VET). See agricultural
mandatory. See technical regulations. education and training.
634 GLOSSARY
A U T H O R S A N D T H E I R A F F I L I AT I O N S
635
Michelle Friedman, World Bank
Josef Geoola, GALVmed
Peter Gildemacher, Royal Tropical Institute (KIT)
María Verónica Gottret, Tropical Agriculture Research and Education Center (CATIE)
Andy Hall, LINK Ltd. (Link Ltd. started as a UNU-MERIT/FAO initiative in 2005)
Helen Hambly Odame, Assistant Professor, University of Guelph
Frank Hartwich, United Nations Industrial Development Organization (UNIDO)
Willem Heemskerk, Royal Tropical Institute (KIT)
Douglas Horton, Consultant
Indira Ekanayake, Africa Agriculture and Development, World Bank
Steen Joffee, Director, Innodev U.K.
Adolphus J. Johnson, Ministry of Agriculture, Forestry and Food Security, Sierra Leone
Trish Kammili, French National Institute for Agricultural Research (INRA)
S.M. Karuppanchetty, International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)
Godrick Khisa, Farmer Field School Foundation Promotion Services, Wageningen University
Laurens Klerkx, Communications and Innovation Studies, Wageningen University
Stanley Kowalski, University of New Hampshire School of Law, Concord
Patti Kristjanson, World Agroforestry Centre (CIFOR)
Anton Krone, SaveAct, Prolinnova South Africa
Gunnar Larson, Agriculture and Rural Development Department, World Bank
Ninatubu Lema, NARS Tanzania
Tarmo Lemola, ADVANSIS Ltd.
David Lugg, Food and Agriculture Organization of the United Nations (FAO)
Mark Lundy, Decision and Policy Analysis Program, CIAT
John Lynam, Consultant
Charles J. Maguire, Consultant
Vijay Mahajan, BASIX Group, India
Morven McLean, ILSI Research Foundation
Mohinder S. Mudahar, Consultant
Bernardo Ospina Patiño, Latin American and Caribbean Consortium to Support Cassava Research and Development
(CLAYUCA)
Christopher Palmberg, ADVANSIS Ltd.
Andrea Pape-Christiansen, Consultant
Robert Potter, Robert Potter Consulting
John Preissing, Food and Agriculture Organization of the United Nations (FAO)
Ranjitha Puskur, International Livestock Research institute (ILRI)
Boxes, figures, and tables are indicated by b, f, and t following the page number.
A agenda setting
AACREA (Argentine Association of Regional Consortiums for coordination and collective action, 32, 76
Agricultural Experimentation), 49b, 63b education and training, 114–17, 114t
Aakruthi Agricultural Associates of India, 423b agrarian economies, 265, 278b
ABI (Agri-Business Incubator@ICRISAT), 393b, 423b Agri-Business Incubator@ICRISAT (ABI) (India), 393b, 423b,
accountability. See also governance See also business incubator
coordination and collective action, 21, 36 Agrícola Cafetelera Buena Vista (Bolivia), 96
defined, 540b Agricultural Biorefinery Innovation Network for Green Energy,
extension and advisory services, 188, 217, 219 Fuels, and Chemicals (Canada), 46
innovation networks, 51 agricultural business development, 388–441
partnerships, 367b business incubators and, 388–95
research organizations, 317–19, 319b cluster-based approach, 396–405, 430–34, 431–33b
accreditation, 123 enabling environment for, 512–15
ACF (Asia Challenge Fund), 614–15 innovative activity profiles, 421–41
Ackermann, Nuria, 430 partnerships and, 362
Adaptable Program Loan (World Bank), 240b, 241 risk capital for, 414–20
adaptive management, 19b technology transfer and, 406–13, 426–29
additionality, 372b, 377 agricultural credit services, 246–50, 247t, 248–49b
advisory committees for curriculum reform, 153 Agricultural Economics Institute, 163
advisory services, 10. See also extension and advisory services agricultural education and training (AET). See education
aerial photography, 8b and training
AERI (Agricultural Exports and Rural Income) Project, 151 Agricultural Exports and Rural Income (AERI) Project, 151
AET (agricultural education and training). See education and agricultural innovation councils, 23
training agricultural innovation systems
AFAAS (African Forum for Agricultural Advisory Services), 188, 189b defined, 4b
affirmative action, 29, 65 education and training. See education and training
Africa. See also specific countries and regions evolution of, 1
biosafety regulatory systems in, 522–25 examples, 3b
education and training in, 125 functional assessments, 548–49, 548t
regional research coordination in, 299b, 301b funding. See innovation funds
regulatory frameworks in, 453b initiatives to strengthen key components, 4–7
Africa Country Programmes (ACP), 615 innovation brokers. See innovation brokers
African Agriculture Fund, 417–18b, 418 need for, 4b
African Forum for Agricultural Advisory Services (AFAAS), 188, 189b networks. See innovation networks
African Women in Agricultural Research and Development overview, 3–4, 4f
(AWARD), 109b research in, 264–69. See also research
639
Agricultural Research Council (ARC, South Africa), 401b Armenia, competitive grant funding in, 436
agricultural research linkages, 277–88 ARMT (Agricultural Risk Management Team), 347
commercialization approaches, 284–86 ASARECA, 306b
financing for, 286 Asia Challenge Fund (ACF), 614–15
in AIS, 277–88 Asociación Argentina de Consorcios Regionales de
innovative activity profile, 344–49, 345b, 346t, 348b Experimentación Agricola (AACREA), 49b, 63b
investment context, 277–78, 278b ASOSID (Mexico), 312b
investment needs, 278–86, 279–80t assessment, 546–52
lessons learned, 287–88 benchmarking and, 549–50, 549t
policy issues, 286–87 of biosafety risk, 492–500, 501–11, 522–25
potential benefits, 286 defined, 540b
technology transfer and, 284–86, 285b of environmental risk, 522–25
Agricultural Risk Management Team (ARMT), 347 foresighting investments, 562–68, 563–64b, 566t
Agricultural Sector Development Program (Tanzania), 200 gender issues and, 598–602
Agricultural Services and Producer Organizations Project of innovation systems, 541–602
(PASAOP, Senegal), 281–82b of innovation system functions, 548–49, 548t
agricultural technical-vocational education and training innovative activity profiles, 589–609, 598–602
(ATVET), 109, 136–40 investment context, 541, 546–47
Agricultural Technology Consortium model (Chile), 338–43, investment needs, 543–45, 544t
339b, 342–43b lessons learned, 551–52
Agriculture and Rural Development Council (Australia), 23 methods, 547–50, 547b, 593–97, 603–6
Agriculture Education Council (India), 146 organizational, 553–61. See also organizational assessment
Agriculture Investment Sourcebook (World Bank), 190 policy issues, 541–43, 542t, 550–51
Agriculture Technology Fund (Peru), 241, 242–43b potential benefits, 550
Agriculture Technology Management Agency (ATMA) (India), 85 public sector role, 550–51
Agri Science Park (India), 421 recommendations, 551–52
agrodealer development, 192, 231–35, 232b theory of change, 547–48, 547b
knowledge transfer and, 232, 233b, 235b Association of Public and Land-Grant Universities (U.S.), 127–28
lessons learned, 234–35 Association of Small and Medium Agro-producers of Panama
support systems, 233–34, 234b (APEMEP), 92b
Ahmadu Bello University (Nigeria), 156 ATMA (Agriculture Technology Management Agency), 85
aid-for-trade, 188 ATVET (agricultural technical-vocational education and training),
Albania, innovation funds in, 438b, 440 109, 136–40
Alemaya University of Agriculture (Ethiopia), 156 Australia
All-China Women’s Federation, 428 agricultural innovation council in, 23
Allgood, John, 231 biosafety regulatory systems in, 499b
Alliance for a Green Revolution in Africa, 299b coordination organizations in, 36, 37b
Andhra Pradesh Dairy Development Cooperative Federation, 248b national agricultural innovation system in, 284b
Andhra Pradesh, India no-till agriculture in, 70, 73t
agricultural credit services in, 248b research and development in, 284
community organizations in, 84–89 research councils in, 21
coordination organizations in, 84–89, 85b, 86–87f, 87–88b technical human resources development in, 137b
financial services in, 526–29 AWARD (African Women in Agricultural Research and
innovative activity profiles, 84–89, 526–29 Development), 109b
Self help groups (SHGs) in, 84–89 Ayers, Seth, 388
angel investment, 415 Azerbaijan, competitive grant funding in, 436
APEMEP (Association of Small and Medium Agro-producers of
Panama), 92b B
Aravazhi, S., 421 BACET (Building Agribusiness Capacity in East Timor)
ARC (Agricultural Research Council, South Africa), 401b project, 165–68
Argentina backward integration, 56b
farmer organizations in, 63b BAIF Development and Research Foundation, 216b
innovation networks in, 49b Ballantyne, Peter, 326
national innovation policy in, 465b Banana Producers Association in Riva (Nicaragua), 433b
no-till agriculture in, 70, 72t, 73t Bangladesh
public-private research partnerships in, 274b, 292b, 294 agricultural innovation systems in, 3b
Argentine Association of Regional Consortiums for Agricultural agrodealer development in, 234, 234b
Experimentation (AACREA), 49b, 63b biosafety regulatory systems in, 498b
640 INDEX
extension and advisory services in, 214, 233b, 235b no-till agriculture in, 70, 72t, 73t
no-till agriculture in, 47b, 70, 72 public-private research partnerships in, 292b, 385b
public-private partnerships in, 375b research councils in, 21
rural road networks in, 455b technology transfers in, 411b
technical knowledge transfer in, 233b, 235b Brazilian Agricultural Research Corporation, 70, 112b
Bangladesh Fertilizer Association (BFA), 234b Brett, Alistair, 414
BASIX Group, 192, 246–50, 247t, 248–49b British American Tobacco, 181b
Bayero University (Nigeria), 156 broad cluster mapping, 402
BecA-Hub, 299b brokers. See innovation brokers
benchmarking Building Agribusiness Capacity in East Timor (BACET)
assessment and, 549–50, 549t project, 165–68
cluster-based development and, 402 Bukalasa Agricultural College (Uganda), 163
national innovation systems and policies, 466, 467–68b Bunda College of Agriculture (Malawi), 156
organizational assessment and, 554 Burkina Faso, biosafety regulatory systems in, 500b
Bennett, Alan B., 406 business development. See agricultural business development;
Best, Rupert, 344 local business development services (LBDSs)
Best Bet technologies, 615 business incubators, 366, 388–95. See also agri-business
BFA (Bangladesh Fertilizer Association), 234b incubators
Bhabha Atomic Research Centre (India), 38b financing, 394–95
Bill and Melinda Gates Foundation, 109b, 133b in Mali, 209b
Bioconnect (Netherlands), 40–41, 43b in India, 393b, 423b
biosafety regulatory systems, 492–500 innovation networks and, 46
capacity building for, 493b innovative activity profiles, 421–25
innovative activity profiles, 522–25 investment context, 388–89, 389b
interministerial coordination for, 497–98, 498b investment needs, 389–91
investment context, 492 lessons learned, 391–95, 424
investment needs, 493–94 local business development and, 209b
lessons learned, 495–99 policy issues, 391
policy issues, 494–95 potential benefits, 391
potential benefits, 494, 494b recommendations, 391–95
recommendations, 495–99 revenue models for, 390b
Bioseed Research India, 424b services of, 388b
BIOTEC program (Thailand), 266 sustainability, 424
Birner, Regina, 553 typology, 389t
block grants, 381–82, 382t business linkage development, 233, 234b
Boettiger, Sara, 480, 516 Business Minds Africa: Professionals for Agricultural
Bogor Agricultural University (Indonesia), 127b, 133 Entrepreneurship in East-Africa, 207
Bolivia
education and training in, 117b C
farmer organizations in, 67 CAADP (Comprehensive African Agriculture Development
innovation networks in, 45b Programme), 182
no-till agriculture in, 70, 73t CAFÉ PERÚ, 242b
public-private research partnerships in, 385b Cambodia
research and development in, 283 innovation funds in, 440, 440b
rural productive alliances in, 96, 97 intellectual property rights in, 486b
Botswana public-private partnerships in, 404
business development services in, 207 Cambodian Center for Study and Development in Agriculture
intellectual property management in, 483b (CEDAC), 440b
Botswana Technology Centre (BOTEC), 483b Canada
BRAC, 214, 215–16b International Development Agency, 299b
Braun, Arnoud R., 236 no-till agriculture in, 70, 73t
Brazil capacity building, 9–10
coordination and collective action in, 34 for biosafety regulatory systems, 493b
education and training in, 112b, 129 cluster-based business development and, 431, 433–34
farmer organizations in, 67 coordination and collective action and, 9, 26–28, 27b, 31–32,
Brazilian Agricultural Research Coooperation (EMBRAPA), 59–69
112b, 292b education and training and, 9–10
national innovation policy in, 463b evaluation and, 580
INDEX 641
capacity building (continued) public-private research partnerships in, 90
extension and advisory services, 10 tertiary education reform in, 124–25b
farmer organizations and, 61, 64 value chains in, 54b
for governance, 473–76 Chinese University of Technology, 409b
higher education students and, 133b CIAT (International Center for Tropical Agriculture), 17b, 91–93,
innovation brokers and, 226 347, 348b
innovation systems and, 9–10 CLAYUCA, 90–94
for intellectual property (IP) management, 518b Learning Alliances, 344–49
local business development services and, 211–12 CIMMYT (International Maize and Wheat Improvement
for national coordination, 35, 36b Center), 47b, 50
organizational change and, 316–17, 318b CIP (International Potato Center), 45b, 222b
for pluralistic extension systems, 198–200 civil society. See also nongovernmental organizations (NGOs);
for public-private partnerships, 379 specific organizations
Casas Agrárias (Mozambique), 208b cluster-based business development and, 431b
Cassava research networks, 90–94, 92b. See also CLAYUCA coordination and collective action role, 28, 31
catalytic agents, 46, 50. See also business incubators; innovation education and, 138
brokers innovation networks and, 48, 51
Catholic Relief Services (CRS), 347, 348b marketing chains, 57
CATIE, 344–49. See also Learning Alliances research and, 273, 371b
CBR (community-based research), 157–59, 159b Clayton, Anthony, 562
CCARDESA (Center for Coordination of Agricultural Research CLAYUCA (Latin American and Caribbean Consortium to
and Development in Southern Africa), 307b Support Cassava Research and Development), 90–94, 92b
CEDAC (Cambodian Center for Study and Development in Client-Oriented Research and Development Management
Agriculture), 440b Approach (CORDEMA), 318b, 322
CEGE (Center for Entrepreneurial Management) climate change, 12b, 188. See also environmental issues
(Nicaragua), 432b cluster-based business development, 368, 396–405
CENICAÑA (Colombian Sugarcane Research Center), 66 capacity building and, 431, 433–34
Center for Community-Based Research (Thailand), 158 infrastructure and, 397
Center for Coordination of Agricultural Research and innovative activity profile, 430–34, 431–33b
Development in Southern Africa (CCARDESA), 307b institutional framework and, 398–99, 398f
Center for Entrepreneurial Management (CEGE) investment needs, 397–99
(Nicaragua), 432b investment rationale, 396–97
Central Africa, regional research coordination in, 299b. lessons learned, 402–5, 434
See also specific countries policy issues, 400
Central American Learning Alliance, 283, 344, 347 potential benefits, 399–400, 431–34
CFC (Common Fund for Commodities, Kenya), 222b public-private partnerships and, 404b
CGIAR. See Consultative Group on International Agricultural recommendations, 402–5
Research regulatory environment and, 397–98
Cheetah Network (Mali), 209b value chains vs., 397
Chiang Mai University (Thailand), 126, 133, 157–59, 159b CMSA (community-managed sustainable agriculture), 85, 86–89,
Chile 87–88b
agricultural innovation council in, 23 codesigned innovations, 308–15
Agricultural Technology Consortium model in, 338–43, 339b, investment context, 308–9, 309t
342–43b investment needs, 309–13, 310b, 310t, 312b
assessment in, 607–9, 608–9b, 609f lessons learned, 314–15
coordination organizations in, 36, 80–83 partnerships for, 282–83, 295
intellectual property management in, 484b policy issues, 314
national innovation policy in, 461b potential benefits, 314
no-till agriculture in, 72 COFUPRO (Coordinadora Nacional de las Fundaciones Produce,
olive oil industry in, 82b Mexico), 75–77, 78b
research and development tax incentives in, 365b collective action. See coordination and collective action
China colleges and universities. See tertiary education and training
business incubators in, 392b Collion, Marie-Hélène, 95
education and training in, 129, 138 Colombia
higher education reform in, 157–59, 159b agricultural innovation systems in, 3b
intellectual property management in, 409b, 426–29 business incubators in, 395b
no-till agriculture in, 70, 72, 73t farmer organizations in, 67
public-private partnerships in, 362, 375b, 377b, 380b intellectual property rights in, 485b
642 INDEX
matching grant schemes in, 385b policy issues, 28–29
no-till agriculture in, 72 poverty reduction and, 17–18
public-private research partnerships in, 90, 93, 274b, 385b public and private sector role, 28
rural productive alliances in, 96, 97 public goods production and, 17
Colombian Coffee Growers’ Federation, 23, 24, 53, 60 research and educational organizations role, 28–29, 270,
Colombian Sugarcane Research Center (CENICAÑA), 66 277–88, 278b, 297–307
Colombia Productive Partnerships Project, 385b sustainability issues, 29
commodity boards, 23–24 value chains and, 31, 52–58
Common Fund for Commodities (CFC, Kenya), 222b Copperbelt College of Education (Zambia), 117b
community-based research (CBR), 157–59, 159b Coprokazan (Mali), 62b
community-managed sustainable agriculture (CMSA), 85, 86–89, CORAF/WECARD, 307b
87–88b CORDEMA (Client-Oriented Research and Development
competency-led partnerships, 295 Management Approach), 318b, 322
competitive position analysis, 402 core (block) funding, 381–82, 382t
competitive research grants (CRGs), 6b, 41b, 286, 368, 381–82, Corporation to Promote Production (CORFO, Chile), 81
382t, 386b, 437–38b. See also matching grants, and Costa Rica
innovation funds cassava market in, 94b
defined, 632 education and training in, 128, 133
Comprehensive African Agriculture Development Programme higher education reform in, 160–62
(CAADP), 182 public-private research partnerships in, 90
CONDESAN, 298b cost-sharing, 189–90, 233
Consorcio Papa Chile SA, 342b Council of Scientific and Industrial Research (India), 38b
consortium approaches, 283–84 Council of Social Science Research (India), 38b
Consultative Group on International Agricultural Research Council on Agricultural Research (India), 47b
(CGIAR) counterfactuals, 582, 583b
extension and advisory services, 180, 183b, 222 CRCs (Cooperative Research Centres), 284b, 338
Gender and Diversity Program, 109b credit markets, 246–50, 247t, 248–49b. See also financial services
research centers, 262, 274b, 306b CRGs. See competitive research grants
role of, 7 Crops Research Institute (Ghana), 71b
contracting curriculum reform, 131–35
intellectual property (IP) management and, 519 investment context, 131–32
for partnerships, 378–79 investment needs, 132
performance-based, 514 lessons learned, 134–35
for public-private partnerships, 378–79 policy issues, 134
Cooperative Research Centres (CRCs), 284b, 338 potential benefits, 132–33, 133b
Coordinadora Nacional de las Fundaciones Produce recommendations, 135
(COFUPRO, Mexico), 75–77, 78b cyber-extension, 183b
coordination and collective action, 9, 15–106
agenda setting, 32 D
in biosafety regulatory systems, 497–98, 498b DAE (Department of Agricultural Extension, Bangladesh),
capacity building for, 26–28, 27b, 31–32, 59–69 233b, 235b
economic growth and, 16–17 Dairy Cooperative Societies (India), 25b, 60
environmental outcomes and, 18 DAPEP (Dryland Agriculture Productivity Enhancement
equity issues, 29 Program), 246
of extension and advisory services, 189b Davis, Kristin, 179, 180, 194, 236
factors essential to, 18, 19b decentralization
Farmer Field Schools (FFSs), 236–39 coordination and collective action, 77
gender issues, 29 education and training, 124–25b
governance and, 30, 478 extension and advisory services, 6b, 184, 197–98, 202
innovation brokers and, 30–31 research, 6b, 262–63, 270
innovation networks and, 30, 44–51 DEEPA Industries Ltd., 222b
innovative activity profiles, 70–99 democratization, 270
instruments and incentives for, 20 Department for International Development (UK), 327b
investment rationale, 16–18 Department of Agricultural Extension (DAE, Bangladesh),
monitoring and evaluation, 32–33 233b, 235b
on national level, 21, 34–43 Department of Education, Employment, and Workplace
organizations for, 20–26, 22t, 23–25b, 27b Relations (Australia), 137b
overview, 15–33 Department of Primary Industries (DPI, Australia), 137b
INDEX 643
Department of Science and Technology (DST, India), 421 Ekanayake, Indira, 512
Dharampur Uththan Vahini (DHRUVA, India), 216b Ekboir, Javier, 15, 44, 52, 59, 70, 75
Diaz Rios, Luz, 501 Elliott, Howard, 297
diffusion of technology, 39b, 47, 70–71 El Salvador, learning alliances in, 17b
Dijkman, J., 273 Elsenburg Training Institute, 401b
District Services for Economic Activities (Mozambique), 206b Empresa Brasileira de Pesquisa Agropecuária (EMBRAPA), 34,
Doing Business (World Bank), 391 70, 112b, 292b
Dorai, Kumuda, 539, 569, 580 enabling environment for innovation, 10–11, 449–537.
downward accountability, 188 See also standards, biosafety
DPI (Department of Primary Industries, Australia), 137b environmental issues, 456
Dryland Agriculture Productivity Enhancement Program financial services, 526–29
(DAPEP), 246 governance and, 452, 456–57, 469–79
DST (Department of Science and Technology, India), 421 infrastructure 512–14
due diligence, 519 innovative activity profiles, 512–29
Duveskog, Deborah, 236 intellectual property management, 480–91, 516–21
investment context, 452–55
E investment needs, 456–58
EARTH University (Costa Rica), 133, 160–62 investment rationale, 450–52, 450f
East Africa monitoring and evaluation for, 458–59t
Farmer Field Schools in, 236, 238 national innovation policy, 460–68
regional research coordination in, 299b policy issues, 450–52, 450f, 455–56, 457
East Africa Agricultural Productivity Project, 264 poverty reduction and, 456
East Africa Dairy Development Project, 327b public-private partnerships, 93, 456
Eastern and Southern Africa Seed Alliance, 285b regulatory frameworks and, 452–53, 457, 492–511, 522–25
Economic Development Programme (BRAC), 215–16b rural areas, 454–55, 455b, 457–58
Ecuador environmental issues
innovation networks in, 45b enabling environment for innovation and, 449, 456
public-private research partnerships in, 90, 291b intellectual property (IP) management and, 488
research and development in, 283 local business development services and, 210, 210b
education and training, 9–10, 107–77, 117b national innovation policy and, 464
curriculum reform, 125–26, 126b, 131–35, 151–53 pluralistic extension systems and, 201
financing trends, 5b Envirotrade project, 210b
formal, 110–11 Equity Bank of Kenya, 327b
gender and, 109b equity issues. See also gender issues
ICT and, 8b, 117b coordination and collective action, 29
informal, 111 extension and advisory services, 188–91, 244
initiatives to strengthen, 5–7, 6b, 7 organizational change, 324
innovative activity profiles, 145–71 partnerships, 370
in-service training and development, 111, 141–44, 154–56 pluralistic extension systems, 201
for intellectual property (IP) management, 407–8, 408t, regional research, 302
489–90, 490b research, 270
investment context, 108, 111–12 ERAP (External Resource Person Advisory Program), 246–47
investment needs, 114–17 Ernstberger, Josef, 361, 381, 426
monitoring and evaluation of investments in, 119–20, 120–21t Estamos (NGO), 208b
overview, 107–21 Ethiopia
policy issues, 112–13 business development services in, 201, 205
reform priorities and directions, 113–19, 114t education and training in, 126, 138
structure of systems, 108–11 extension and advisory services in, 181b, 184, 187b
technician development, 136–40, 163–64, 169–71, 170b gender-inclusive education in, 109b
for Technology Transfer Offices (TTOs), 407–8 innovation funds in, 437, 438b
tertiary level, 122–30, 145–53, 157–62. See also tertiary net-mapping in, 596b
education and training research and development in, 327b
e-extension, 183b technical skill development in, 163–64
Egypt Eurasia Group, 234b
education and training in, 132 European Foundation for Quality Management, 164
higher education reform in, 151–53 evaluation, 580–88. See also monitoring and evaluation (M&E)
technical skills development in, 169–71, 170b capacity building and, 580
vocational training in, 169–71, 170b counterfactuals and, 582, 583b
644 INDEX
defined, 540b FARM-Africa (NGO), 185b
investment context, 580–81 Farm Business Schools, 207, 211
investment needs, 581–85 Farmer and Nature Net (FNN), 440b
lessons learned, 585–88 Farmer Field Schools (FFSs)
methods, 583–84b, 583–85, 586–87t coordination networks for, 236–39
policy issues, 585 defined, 26
potential benefits, 585 extension and advisory services, 180, 181b, 192, 206b
principles, 581–83, 582b gender issues, 237b
recommendations, 585–88 lessons learned, 239
exit strategies for public-private partnerships, 369b, 379 participatory group learning in, 185b
extension and advisory services, 179–93, 194–250 potential benefits, 237
agricultural credit and, 246–50, 247t, 248–49b sustainability, 238
agrodealer development, 231–35, 232b farmer interest groups (FIGs), 184b
coordination of, 189b farmer-managed foundations, 23
defined, 179–80, 180b farmer organizations, 24–26. See also producer organizations
development principles, 183–87, 185–86t defined, 16b
equity issues, 188, 190–91, 244 extension and advisory services, 202
evolution of, 180–83, 181b financing of, 63b, 67
“extension-plus” approach, 191, 213–20 information technology use by, 62b
Farmer Field Schools, 185b, 236–39 innovation networks and, 46
gender issues, 190–91 marketing chains and, 52
ICT and, 183b, 185b poverty reduction and, 17
initiatives to strengthen, 6b, 7 farmer-to-farmer (F2F) extension, 182
innovation brokers and, 191, 221–30 farmer training centers (FTCs), 187b
innovation networks and, 46 Farm Radio International, 62b
in-service training, 154–56 FDSE (Fondo para el Desarrollo de Servicios Estratégicos, Peru),
investment levels in, 181–82, 181b 242–43
local business development services, 191, 204–12 fee-for-service extension, 188b
monitoring and evaluation of, 192–93, 192b fertilizer deep placement technology, 235b
pluralistic extension systems, 191, 194–203 FFA (Future Farmers of America), 109, 110b, 111
policy issues, 187–91 FFSs. See Farmer Field Schools
public and private sector roles, 180, 187, 189, 190t FIA (Fundación para la Innovación Agraria, Chile), 23, 30, 36,
roles and impacts of, 180 80–83, 81b
sustainability, 189–90 finance partnerships, 295
“extension-plus” approach, 191, 213–20 financial services
human resource issues, 218 agricultural credit, 246–50, 247t, 248–49b
institutional framework and, 216–18 cluster-based development and, 402
investment context, 213–14, 214t enabling environment for innovation and, 526–29
investment needs, 214–16, 215–16b, 215t extension services and, 246–50, 247t, 248–49b
lessons learned, 218–20 instruments, 369b, 417t
monitoring and evaluation of, 216–18, 217t savings and credit cooperatives, 183
policy issues, 216–18 financing. See also matching grants and research grants
potential benefits, 216 of agricultural research linkages, 286
public and private sector roles, 218 of business incubators, 394–95
recommendations, 219–20, 220t extension and advisory services, 189–90
sustainability, 218 of farmer organizations, 63b, 67
External Resource Person Advisory Program (ERAP), 246–47 investments for innovation, 414–420
partnerships, 368–69
F of research, 5b, 270, 271b
facilitation, 3b, 15–33, 283, 288, 305t, 306, 308–15, 316–25, sustainability of, 19b
344–49, 520–21. See also broker, and innovation broker technology transfer, 5b
business, 422 Finland
direct, 404 response to challenges of globalization, 472b
facilitating cooperation, 403 governance of innovation systems in, 469–479, 472b, 475b
network membership and, 591 policy coordination organizations in, 474b
public sector, 427 research and innovation council, 474b
Fair Trade movement, 53 strategic intelligence capabilities in, 476b
FAO (Food and Agriculture Organization), 111 Finnish Funding Agency for Technology and Innovation
(Tekes), 473b
INDEX 645
first-round funding, 416 Ghana
FLAR (Latin American Fund for Irrigated Rice), 298b agricultural innovation systems in, 3b
FNN (Farmer and Nature Net), 440b agricultural research linkages in, 280b
Fodder Innovation Project, 327b, 329b, 610–13, 613t education and training in, 155
Fondo de Tecnología Agraria (FTA, Peru), 241, 242–43b gender-inclusive education in, 109b
Fondo para el Desarrollo de Servicios Estratégicos (FDSE, Peru), innovation funds in, 437
242–43 in-service training for extension staff, 155–56
Food and Agriculture Organization (FAO), 111, 181b, 211 net-mapping in, 596b
Ford Foundation, 301b no-till agriculture in, 70, 71b, 72
foreign direct investment, 482 organizational assessment in, 560b
foresighting investment, 562–68 public-private research partnerships in, 90
lessons learned, 568 research councils in, 21
policy issues, 567–68 Ghana Cocoa Board, 24
potential benefits, 567 Gildemacher, Peter, 221
process, 563–65 Global Alliance for Livestock Veterinary Medicines (GALVmed),
recommendations, 568 327b, 516–21, 517–18b
sustainability and, 567–68 Global Development Alliance, 234b
tools and applications, 562–67, 566t Global Forum for Rural Advisory Services (GFRAS), 182,
formal organizations, 21 189b, 192b
Foundation for Agricultural Innovation (Chile), 23, 30, 36, GlobalGAP, 405
80–83, 81b Golden Rice, 50
fourth-round funding, 416 Gottret, María Verónica, 344
Framework for African Agricultural Productivity, 182 governance, 469–79, 472f
France, no-till agriculture in, 72 capacity building for, 473–76
Fresh Produce Exporters Association of Kenya (FPEAK), 23, 24b competitive research funding and, 41b
Friedman, Michelle, 95 coordination and collective action, 30, 36b, 478
FTA (Fondo de Tecnología Agraria, Peru), 241, 242–43b enabling environment for innovation and, 452, 456–57, 469–79
FTCs (farmer training centers), 187b farmer organizations, 61
Fundación Chile, 399 innovation funds and, 383, 384t
Fundación para la Innovación Agraria (FIA, Chile), 23, 30, 36, innovation networks, 51
80–83, 81b of innovation systems, 469–79
Future Farmers of America (FFA), 109, 110b, 111 of innovation systems in Finland, Republic of Korea, South
Africa, 469–79
G intellectual property (IP) management and, 408–9
GALVmed (Global Alliance for Livestock Veterinary Medicines), investment context, 469–71
327b, 516–21, 517–18b investment needs, 471–77
Gender in Agriculture Sourcebook (World Bank), 324 lessons learned, 477–79
gender analysis, 539, 544t, 598–602 local business development services and, 209
gender issues national innovation policy and, 21, 464
in assessments, 598–602, 600t organizational change, 317–19, 319b
in coordination and collective action, 29 potential benefits, 477
as cross-cutting theme, 12b project-based funding and, 40, 41b, 42t
education and training, 113 public-private partnerships, 375
in education and training, 109b recommendations, 479
in extension and advisory services, 190–91 Technology Transfer Offices and, 408–9
in Farmer Field Schools, 237b transparency and, 479
organizational change, 324 Granovetter, M., 221
partnerships, 370 Guatemala
pluralistic extension systems, 201 farmer organizations in, 67
Gene Technology Act (Australia), 499b learning alliances in, 17b
genetically engineered foods, 495–96b, 500b. See also biosafety public-private research partnerships in, 385b
regulatory systems rural productive alliances in, 97
genetic resources Guyana, public-private research partnerships in, 90
intellectual property management and, 481b
public-private partnerships, 274b H
Geoola, Josef, 516 Hagar Soya Co. (Cambodia), 486b
GFRAS (Global Forum for Rural Advisory Services), 182, 189b, Haiti, public-private research partnerships in, 90
192b Hall, Andy, 273, 539, 569, 580, 610
646 INDEX
Hambly Odame, Helen, 539, 546 technology development and transfer in, 331–37, 333t,
Hartwich, Frank, 294 334–36b
Hawassa University (Ethiopia), 156 Indian Council of Agricultural Research (ICAR), 38, 38b, 145,
Heemskerk, Willem, 179, 194 323b, 331–37
higher education. See tertiary education and training Indonesia
Honduras education and training in, 129
education and training in, 128 public-private research partnerships in, 274b
learning alliances in, 17b tertiary education reform in, 125, 127b
public-private research partnerships in, 385b Industry Skills Training Councils (Australia), 137b
honest broker role, 404 infoDev, xv, 364, 390b, 392b
HoneyBee Network, 224b infomediaries, 224b
HORIZONT3000, 431b informal organizations, 21
Horton, Douglas, 316 Information and Communication Technologies for Agriculture
household surveys, 559 e-Sourcebook (World Bank), 183b
humanitarian licensing models, 489 information and communication technology (ICT)
human resource development (HRD), 141–44, 146 education and, 8b, 115, 117b
extension and advisory services and, 7, 183b, 185b
I farmer organizations and, 62b
IBEX (Inter Borrower Exchange Program), 246 innovation brokers and, 224b
ICAR. See Indian Council of Agricultural Research knowledge exchange role of, 8b
ICICI Bank, 248b research and, 272–73, 272b
ICRISAT. See International Crops Research Institute for training and, 8b, 117b
Semi-Arid Tropics information gathering
ICT. See information and communication technology defined, 540b
IDE (International Development Enterprises), 224b market intelligence, 58, 272–73, 413
IDESI (Institute for Development of the Informal for organizational assessment, 555–56
Sector–Arequipa), 242 research and, 272–73
IDRC (International Development Research Centre), 17b, 344 infrastructure
IFDC (International Fertilizer Development Center), 232–33, 233b for cluster-based business development, 397, 431b
IIRR (International Institute of Rural Reconstruction), 207 for education and training, 168
ILAC (Institutional Learning and Change Initiative), 559b, 628 INIA (Instituto Nacional de Investigación Agropecuaria,
ILO (International Labour Organization), 111, 375b Uruguay), 39b, 320–21b
ILRI. See International Livestock Research Institute INIAP (Ecuador), 45b
Imperial Chemical Industries (ICI), 70 INIAP (Instituto Nacional Autónomo de Investigaciones
INCAGRO. See Innovation and Competitiveness Program for Agropecuarias, Ecuador), 291b
Peruvian Agriculture Innova-Chile, 81
INCOPA Project (Peru), 45b Innovation Acquisition Service (Thailand), 23b
incubator. See business incubator Innovation and Competitiveness Program for Peruvian
India. See also Andhra Pradesh Agriculture (INCAGRO), 240–45, 240b, 242–43b, 244t,
Agricultural business incubator at ICRISAT, 393b, 421–25 320–21b, 322
agricultural innovation systems in, 3b innovation brokers
agrodealer development in, 231 brokering role, 179–259
BASIX, 246–50 capacity building and, 27b
biosafety regulatory systems in, 495–96b coordination role of, 30–31
business incubators in, 392b, 421–25, 422f, 423–24b, 425t defined, 16b
coordination organizations in, 25b, 38b, 84–89, 85b, 86–87f, extension and advisory services role of, 191, 221–30
87–88b innovation networks and, 46
education and training in, 129, 138 innovative activity profiles, 231–50
extension and advisory services in, 184b, 224b investment context, 221–22
farmer organizations in, 62b, 63b investment needs, 222–23b, 225–26
higher education reform in, 145–48 lessons learned, 227–28
innovation brokers in, 222, 224b monitoring and evaluation of, 228
National Agricultural Innovation Project (NAIP), 38, 266, 269, policy issues, 226
331–37, 333t, 334–36b potential benefits, 224–25
no-till agriculture in, 47b, 70, 72, 72t recommendations, 228–30
research organizations in, 21, 323b typology of, 222–24, 225t
scenario planning in, 603–6, 604t, 605f, 606b innovation funds, 381–87
governance and, 383, 384t
INDEX 647
innovation funds (continued) lessons learned, 144
innovative activity profile, 435–41, 437–38b, 437t, 440b potential benefits, 143–44
investment context, 381–82 Institute for Development of the Informal Sector–Arequipa
investment needs, 383 (IDESI, Peru), 242
lessons learned, 386–87, 387b Institute of Peruvian Amazon Research, 243b
policy issues, 384–85 institutional framework
potential benefits, 383–84 cluster-based business development and, 398–99, 398f, 431b
sustainability, 440–41 “extension-plus” approach and, 216–18
InnovationNetwork (Netherlands), 46 intellectual property (IP) management and, 410
innovation networks, 30, 44–51 pluralistic extension systems and, 201
capacity building and, 27b research and, 5
coordination and collective action role of, 30, 44–51 Technology Transfer Offices and, 410, 485–86
incentives for, 51 tertiary education and, 147
investment context, 44–45 Institutional History monitoring method, 577b, 610–13, 613t
investment needs, 45–46 institutional learning, 559b
lessons learned, 49–51 Institutional Linkage Project, 151
policy issues, 47–49 Instituto Nacional Autónomo de Investigaciones Agropecuarias
potential benefits, 46–47, 47b (INIAP, Ecuador), 291b
public and private sector roles, 48–49, 49b Instituto Nacional de Investigación Agropecuaria (INIA),
recommendations, 51 39b, 320–21b
research role, 48 Instituto Nacional Tecnología Agropecuaria (INTA, Argentina), 292b
social capital issues, 48 Institut Pertanian Bogor (IPB, Indonesia), 127b, 133
sustainability and, 47–48 INTA (Instituto Nacional Tecnología Agropecuaria,
innovation platforms, 268–69, 283 Argentina), 292b
innovative activity profiles intellectual property (IP) management, 480–91
advisory services models, 231–50 capacity building for, 518b
agricultural business development, 421–41 contracting and, 519
agricultural research linkages, 344–49, 345b, 346t, 348b due diligence, 519
assessment, 589–609 enabling environment for innovation, 480–91, 516–21
biosafety regulatory systems, 522–25 environmental issues, 488
business incubators, 421–25 foreign direct investment and, 482
cluster-based business development, 430–34, 431–33b genetic resources and, 481b
coordination and collective action, 70–99 governance and, 408–9
education and training, 145–71 humanitarian licensing models, 489
enabling environment for innovation, 512–29 innovative activity profile, 516–21, 517–18b
innovation brokers, 231–50 institutional framework and, 410
innovation funds, 435–41, 437–38b, 437t, 440b investment context, 406–7, 407t, 480–82
innovation partnerships and business development, 421–41 investment needs, 407–9, 484–87
in-service training/learning, 154–56 legal framework and, 487–88
intellectual property (IP) management, 516–21, 517–18b lessons learned, 410–13, 488–89
Mexico produce foundation, 75–79 national innovation policy and, 482
monitoring and evaluation (M&E), 610–19 policy issues, 410, 411–12, 487–88
no-till networks, 70–74 potential benefits, 409–10, 487
organizational change, 326–30, 327b, 329b public and private sector roles, 483–84, 488, 517b
prioritization, 593 public-private partnerships and, 293, 295
public-private research partnerships, 90–94 recommendations, 412–13, 413b, 489–91
rural productive alliances, 95–99 research councils and, 38
regulatory frameworks, 522–25 Technology Licensing Office (Thailand), 23b
research, 326–49 technology transfer and, 482–83
technician development, 163–64, 169–71, 170b trade and, 482
tertiary education and training, 145–53, 157–62 training for, 407–8, 408t, 489–90, 490b
Inova, 411b Inter Borrower Exchange Program (IBEX), 246
in-service training/learning, 141–44 Interchurch Organization for Development Corporation, 431b
implementation issues, 144 interest groups, 40, 184b
innovative activity profile, 146, 154–56 internal rate of return (IRR), 418
investment context, 141 International Center for Tropical Agriculture (CIAT), 17b, 91–93,
investment needs, 142–43 347, 348b
648 INDEX
International Crops Research Institute for Semi-Arid Tropics cluster-based business development in, 401b
(ICRISAT), 285b, 393b, 421–25, 422f, 423–24b, 425t coordination organizations in, 24b, 64b
International Development Agency (Canada), 299b extension and advisory services in, 222b, 238b
International Development Enterprises (IDE), 224b Farmer Field Schools in, 236, 238, 238b
International Development Research Centre (IDRC), 17b, 344 farmer organizations in, 62b
International Fertilizer Development Center (IFDC), 232–33, 233b gender-inclusive education in, 109b
International Food Policy Research Institute, 181b innovation brokers in, 222, 222b, 225
International Institute of Rural Reconstruction (IIRR), 207 research and development in, 271b, 327b
International Institute of Tropical Agriculture–FOODNET, 348b value chains in, 54b
International Labour Organization (ILO), 111, 375b Kenya Agricultural Productivity Project (KAPP), 238b, 269
International Livestock Research Institute (ILRI), 44, 223b, 299b, Kenya Agricultural Research Institute (KARI), 222b, 269
326–30, 327b Kenya Dairy Goat and Capacity Building Project
International Maize and Wheat Improvement Center (KDGCBP), 185b
(CIMMYT), 47b, 50 Kenya Flower Council, 24b
International Potato Center (CIP), 45b, 222b Kenya Good Agricultural Practices (Kenya-GAP), 24b
International Service for National Agricultural Research Kenya Horticulture Council, 24b
(ISNAR), 78b Kenya Tea Board, 24, 64b
internship programs, 153, 161 Kenya Tea Development Agency (KTDA), 53, 60, 64b, 66–67
intervention logic, defined, 540b Kerala Horticultural Development Programme (KHDP, India),
IP. See intellectual property management 215b, 217b, 219b
iPark (business incubator), 392 Khisa, Godrick, 236
IPB (Institut Pertanian Bogor, Indonesia), 127b, 133 Klerkx, Laurens, 221
Ireland Kline, S. J., 268
education and training in, 126 knowledge transfer, 232, 233b, 235b. See also education and
foresighting investments in, 563b training; technology transfer
scenarios, 563b Korea, Republic of
Teagasc, 536b governance of innovation systems in, 470–71, 473b
IRR (internal rate of return), 418 policy coordination organizations in, 474b
ISNAR (International Service for National Agricultural strategic intelligence capabilities in, 476b
Research), 78b Kowalski, Stanley, 480
Kristjanson, Patti, 326
J Krone, Anton, 435
Jamaica KTDA. See Kenya Tea Development Agency
foresighting investments in, 564b Kwadaso Agricultural College (Ghana), 156
public-private research partnerships in, 385b
Janssen, Willem, 607 L
Jimma University College of Agriculture and Veterinary Labor standards, 375b
Medicine (Ethiopia), 163 Lake Victoria Environmental Management Program, 404b
Joffe, Steen, 589 Lambayeque Institute for Agricultural Development (Peru), 242
Johnson, Adolphus, 589 Land Care movement (Philippines), 270
joint experimentation, 311 Land O’Lakes, 165, 166, 167
joint venture, 79b, 81b, 141–42, 195, 286, 341 Larson, Gunnar, 84, 526
Latin America and the Caribbean. See also specific countries
K competitive research grants in, 386b
Kammili, Trish, 569, 580 farmer organizations in, 65–66
KAPP (Kenya Agricultural Productivity Project), 238b, 269 public-private research partnerships in, 90–94, 294
KARI (Kenya Agricultural Research Institute), 222b, 269 regional research coordination in, 297–98, 298b
Karuppanchetty, S. M., 421 research and development in, 263
Kazakhstan, competitive grant funding in, 436 science and technology funds in, 40
KDGCBP (Kenya Dairy Goat and Capacity Building Project), Latin American and Caribbean Consortium to Support Cassava
185b Research and Development (CLAYUCA), 90–94, 92b
Kelemework, D., 275 Latin American Fund for Irrigated Rice (FLAR), 298b
Kellogg Commission on the Future of State and Land-Grant LBDSs. See local business development services
Universities, 127–28 learning alliances, 17b, 273, 344–49, 345b, 346t, 348b
Kenya learning organizations, 559b
agrodealer development in, 234b LEED (Local Economic and Employment Development)
business development services in, 201, 207 Project, 551b
INDEX 649
legal framework for intellectual property, 487–88. See also innovation networks and, 48
regulatory frameworks value chains and, 56–57
Lemola, Tarmo, 469 marketing chains, 52–58. See also value chains
limited partnership investments, 416 coordination and collective action, 23–24
LISFs (Local Innovation Support Funds), 435–41, 438b, 440b extension and advisory services, 217b
Livelihoods Diversification and Enterprise Development farmer organizations and, 60
Fund, 238b investment context, 52–53
livestock, 516–21, 517–18b investment needs, 53–55
biosciences, 299b lessons learned, 57
Fodder innovations project, 610–13 niche markets and, 55
Global Alliance for Livestock Veterinary Medicines policy issues, 56–57
(GALVmed), 516–21 potential benefits, 55–56
intellectual property management, 516–21 public and private sector roles, 57
ILRI, 44, 223b, 299b, 326–30, 327b recommendations, 57–58
research within AIS, 326–30 social capital issues, 56–57
role of ICT for, 8 sustainability and, 56–57
Livestock, Livelihoods, and Markets Project (LiLi), 327b market intelligence, 58, 272–73, 413
local business development services (LBDSs), 191, 204–12 matching grants (MGs), 67, 98, 211, 242, 286, 368, 381–82, 382t,
capacity building and, 211–12 384b, 549t. See also competitive research grants, and
environmental issues, 210, 210b innovation funds
governance and, 209 defined, 632
implementation of, 212 McLean, Morven, 492, 522
investment context, 204–5 MERCOSUR, 298b
investment needs, 205–8, 206b Mexico
lessons learned, 210–12 codesigned innovation in, 312b
policy issues, 208–10 coordination organizations in, 75–79
potential benefits, 208 farmer-managed foundations in, 23
public and private sector roles, 205–7, 205f, 209–10 farmer organizations in, 63b, 67
social targeting of, 209 innovation networks in, 49b
sustainability, 210 no-till agriculture in, 72
Local Economic and Employment Development (LEED) public-private research partnerships in, 90
Project, 551b research councils in, 21
Local Economic Development Projects (Mozambique), 206b value chains in, 54b, 56b
Local Innovation Support Funds (LISFs), 435–41, 438b, 440b microcredit, 246
locavore movement, 53 Middle East and North Africa. See also specific countries
Los Lagos University (Chile), 342b education and training in, 108
Lugg, David, 435 regional research coordination in, 297–98
Lundy, Mark, 344 Midwest Universities Consortium for International Activities
Lynam, John, 261 (MUCIA), 152–53, 169–71, 170b
Milk Producers’ Cooperative Unions (India), 25b
M Ministry of Agriculture (China), 124b
Maguire, Charles J., 107, 122, 131, 136, 141, 145, 149, 151, 154, Ministry of Agriculture (Ethiopia), 138
163 Ministry of Agriculture (India), 38b
Mahajan, Vijay, 246 Ministry of Agriculture (Netherlands), 149
Makerere University (Uganda), 156 Ministry of Agriculture (Peru), 243b, 244
Malawi Ministry of Agriculture and Fisheries (Timor Leste), 165–68
business development services in, 207 Ministry of Agriculture and Food Security (Tanzania), 318b
gender-inclusive education in, 109b Ministry of Education (China), 124b
Mali Ministry of Education (Egypt), 169–70
business development services in, 208 Ministry of Education (Ethiopia), 138
extension and advisory services in, 187, 200, 209b Ministry of Education (Netherlands), 149
farmer organizations in, 62b Ministry of Food and Agriculture (Ghana), 155, 280b
Mali Agribusiness Incubator Network, 209b Ministry of Science and Technology (Thailand), 23b, 266
M&E. See monitoring and evaluation mixed-portfolio investment model, 389
Manpower Advisory Councils (India), 146 mobile phones. See information and communication
Mansingh Institute of Technology (India), 25b technology (ICT)
marginalized populations. See also equity issues; gender issues monitoring and evaluation (M&E), 11, 569–79. See also
farmer organizations and, 65 assessment
650 INDEX
capacity building and, 580 National Cooperative Dairy Federation (India), 63b
competitive research funding and, 41b national coordination, 21, 34–43
of coordination and collective action, 32–33 capacity building for, 35, 36b
counterfactuals and, 582, 583b investment context, 34–35
defined, 540b investment needs, 35–36
of education and training, 119–20, 120–21t, 126b lessons learned, 37–43
for enabling environment for innovation, 458–59t operational practices, 35–36
of extension and advisory services, 192–93, 192b policy issues, 37
of “extension-plus” approach, 216–18, 217t potential benefits, 36–37
farmer organizations and, 69 project-based funding, 40, 41b, 42t
of innovation brokers, 228 recommendations, 37–43
innovative activity profiles, 610–19 research councils, 38–40, 38b
investment context, 541, 569–70, 580–81 thematic or subsectoral coordination, 40–41
investment needs, 543–45, 544t, 570–76, 581–85 National Council on Innovation for Competitiveness (Chile), 338
investment rationale, 539–41 National Dairy Development Board (NDDB, India), 24, 25b, 63b
lessons learned, 578–79, 585–88 National Fund for Agricultural Research (Senegal), 281b
methods, 570–76, 571–72b, 573–75t, 576–77b, 583–84b, National Innovation Agency (NIA, Thailand), 23b, 266
583–85, 586–87t National Innovation Foundation (India), 224b
of national innovation policy, 466–68b national innovation policy, 449–59, 460–68
of organizational change, 319–20, 330 benchmarking for, 466, 467–68b
participatory, 576b coordination and collective action, 21, 34–43
of partnerships, 367b, 372–73, 373t development of, 462b
policy issues, 541–43, 542t, 577–78, 585 enabling environment for innovation, 449–59, 460–68
potential benefits, 577, 585 environmental issues, 464
principles, 581–83, 582b governance and, 464
of public-private partnerships, 294–95, 294b, 379–80, 380b intellectual property management and, 482
recommendations, 578–79, 585–88 investment context, 460
of regional research, 303–7, 304–5t investment needs, 460–63
of research, 275, 276t lessons learned, 465–68
terminology, 540b monitoring and evaluation of, 466–68b
Most Significant Change (MSC), 576b policy issues, 464–65
Mountains of the Moon University (Uganda), 163 potential benefits, 463
Mozambique recommendations, 465–68
business development services in, 201, 205, 208 social capital and, 464
extension and advisory services in, 184, 187, 197b, 200, 206b, National Rural Employment Guarantee Scheme (India), 85
208b, 210b National System of Innovation for Competitiveness (Chile), 80
gender-inclusive education in, 109b National Union of Agriculture and Livestock Farmers
innovation brokers in, 226 (Nicaragua), 432b
Mudahar, Mohinder S., 331 NBIA (National Business Incubator Association), 391
NDDB (National Dairy Development Board, India), 24, 25b, 63b
N NEPAD (New Partnership for Africa’s Development), 299b, 301b
Namibia National Farmers Union, 327b Nepal, no-till agriculture in, 47b, 70, 72
NAIP (India), 38, 266, 269, 331–37, 333t, 334–36b Nestlé, 181b
NARIs (national agricultural research institutes), 262–63 Netherlands
National Agency for Agricultural and Rural Advisory Services Bioconnect, 22t, 43b
(Senegal), 281b coordination organizations in, 43b
National Agricultural Advisory Services (NAADS, Uganda), higher education reform in, 149–50
181b, 186–87b, 200, 206b, 226 innovation brokers in, 222, 227
National Agricultural Extension Program (Mozambique), 184 Netherlands Foundation for International Cooperation, 163
National Agricultural Innovation Project (NAIP) (India), research and development in, 284
38, 266, 269, 331–37, 333t, 334–36b Wageningen university and research center, 149–50
National Agricultural Research Institute (Ecuador), 291b Net-Map, 593–97, 596b
National agricultural research institutes (NARIs), 262–63 Network of Indian Agri-Business Incubators (NIAB), 423
National Bank for Agriculture and Rural Development New Partnership for Africa’s Development (NEPAD), 299b, 301b
(India), 216b New Zealand
National Business Incubator Association (NBIA), 391 extension and advisory services in, 188t
National Commission for Scientific and Technological Research no-till agriculture in, 72
(Chile), 80 New Zealand Dairy Board, 24
INDEX 651
NGOs. See nongovernmental organizations potential benefits, 322–23
NIA (National Innovation Agency, Thailand), 23b, 266 recommendations, 324–25
NIAB (Network of Indian Agri-Business Incubators), 423 for research, 270, 277–88, 278b, 316–25, 344–49, 345b, 346t,
Nicaragua 348b
cluster-based business development in, 430–34, 431–33b, Ospina Patiño, Bernardo, 90
432–33b outcome mapping, 572b
learning alliances in, 17b outsourcing partnerships, 294
public-private research partnerships in, 90 Oxfam, 431b
niche markets, 53, 55, 56, 58
Nigeria P
agrodealer development in, 234b PAID (Partnership for Agricultural Innovation and
business development services in, 207 Development, Sierra Leone), 589–92
gender-inclusive education in, 109b Pakistan
public-private research partnerships in, 90 agrodealer development in, 231
Nippon Foundation, 154 no-till agriculture in, 47b, 70, 72
Njaa Marufuku project (Kenya), 238b Palmberg, Christopher, 469
nongovernmental organizations (NGOs). See also specific Panama
organizations cassava research in, 92b
cluster-based business development and, 431b farmer organizations in, 67
coordination and collective action role of, 17b public-private research partnerships in, 90, 385b
extension and advisory services, 189, 195, 196t rural productive alliances in, 97
innovation networks and, 46 Papa Andina
marketing chains, 52, 57 codesigned innovation and, 313b
public-private partnerships and, 387b creation and consolidation of, 45b
research and, 267 gender and assessment of, 598–602, 600t
no-till networks, 70–74, 72–73t innovation brokers and, 225
Pape-Christiansen, Andrea, 406
O Paraguay
OIKOS (NGO), 208b cluster-based business development in, 405b
one-stop agribusiness centers, 207–8, 208b no-till agriculture in, 70, 72t, 73t
Operation Flood (India), 25b ParqueSoft Centers (Colombia), 390b, 395b
organizational assessment, 553–61 participatory group learning, 185b
benchmarking and, 554 participatory market chain approach (PMCA), 313b
framework for, 553–55, 554f, 555b participatory monitoring and evaluation, 311, 576b
household surveys, 559 Participatory Radio Campaigns, 62b
information gathering, 555–56 participatory research, 262–63, 291b
investment context, 553 Partnership for Agricultural Innovation and Development
learning organizations and, 559b (PAID, Sierra Leone), 589–92
lessons learned, 561 partnerships, 10, 361–448. See also agricultural business
methods, 555–59 development; public-private partnerships
performance assessment, 556–58, 557–58b agricultural business development and, 362
policy issues, 560–61 contracts for, 378–79
potential benefits, 559–60 equity issues, 370
staff surveys, 558–59, 560b extension and advisory services, 198
organizational frameworks, 316–25 financing, 368–69
capacity building and, 316–17, 318b gender issues, 370
for coordination and collective action, 20–26, 22t, 23–25b, 27b incentives, 365b
defined, 16b innovation funds, 381–87, 435–41
equity issues, 324 investment context, 363–69, 364–65t
gender issues, 324 investment needs, 371–72
governance issues, 317–19, 319b investment rationale, 362–63
incentives for change, 320 limited, 416
innovative activity profiles, 326–30, 327b, 329b monitoring and evaluation of, 372–73, 373t
investment context, 316 policy issues, 369–71
investment needs, 316–22, 317t principles for, 377
lessons learned, 324 for research, 90–94
monitoring and evaluation of, 319–20, 330 PASAOP (Agricultural Services and Producer Organizations
policy issues, 323–24 Project, Senegal), 281–82b
652 INDEX
Peking University (China), 409b organizational change, 323–24
PepsiCo, 249b partnerships, 369–71
performance, defined, 540b. See also monitoring and pluralistic extension systems, 200–201
evaluation (M&E) public-private partnerships, 293–94, 376
performance-based contracts, 514 regional research, 300–302
Peru research, 269–70
agricultural innovation systems in, 3b risk capital investments, 418–19
extension and advisory services in, 240–45 technician development, 138–39
gender and program assessment in, 598–602, 600t Technology Transfer Offices, 410, 411–12
innovation networks in, 45b tertiary education and training, 128
public-private research partnerships in, 90, 385b value chains, 56–57
research and development in, 283 Polytechnic University of Bobo-Dioulasso (Burkina Faso), 156
research funding in, 320–21b Potter, Robert, 480
Philippines poverty reduction
public-private research partnerships in, 274b coordination and collective action role in, 17–18
research and development in, 270 enabling environment for innovation and, 456
Pingali, P., 300 Preissing, John, 240
plant variety rights (PVRs), 453b priorities, defined, 540b. See also agenda setting
pluralistic extension systems, 191, 194–203, 196t private sector. See also public-private partnerships
capacity building for, 198–200 coordination and collective action, 28
environmental issues, 201 extension and advisory services, 181b, 187, 189, 190t, 195,
equity issues, 201 196t, 202
gender issues, 201 “extension-plus” approach, 218
institutional framework and, 201 innovation networks and, 48–49, 49b, 51
investment context, 195–97 in-service training capacity, 142
investment needs, 197–200, 199t intellectual property (IP) management, 483–84, 488, 517b
lessons learned, 202 local business development services (LBDSs), 205–7, 205f,
policy issues, 200–201 209–10
potential benefits, 200 marketing chains, 52, 57
public and private sector roles, 201 pluralistic extension systems, 201
recommendations, 203 research financing, 5b, 267, 271–72
sustainability, 200 role of, 12b
PMCA (participatory market chain approach), 313b value chains, 57, 93
policy issues PROCISOR, 298b
agricultural research linkages, 286–87 Produce Foundations (Mexico), 23, 31, 60, 75–79
assessment, 541–43, 542t, 550–51 Producer organization, 5b, 6b, 24, 31, 62b, 95–99, 220t, 222b, 241,
biosafety regulatory systems, 494–95 244, 281b, 342b, 385b, 431b, 433b, 489. See also farmer
business incubators, 391 organization
cluster-based business development, 400, 431b defined, 631
codesigned innovations, 314 Productive Partnerships Project (Colombia), 385b
coordination and collective action, 28–29, 37 product marketing companies, 23
curriculum reform, 134 PROfarm courses, 137b
education and training, 112–13 Programa Nacional de Extensão Agrária (PRONEA,
enabling environment for innovation, 450–52, 450f, Mozambique), 184, 200
455–56, 457 PROINPA Foundation (Bolivia), 45b
evaluation, 585 project-based funding, 40, 41b, 42t
extension and advisory services, 187–91 project management, 142–43
“extension-plus” approach, 216–18 Prolinnova network, 60
foresighting investments, 567–68 Propensity Score Matching, 583b
innovation brokers, 226 public-private partnerships, 290b, 290t, 374–80
innovation funds, 384–85 business development services, 208, 212
innovation networks, 47–49 capacity building for, 27b, 379
intellectual property (IP) management, 410, 411–12, 487–88 cluster-based business development and, 404b
local business development services (LBDSs), 208–10 contracts for, 378–79
marketing chains, 56–57 for coordination and collective action, 90–94, 92b
monitoring and evaluation (M&E), 541–43, 542t, 577–78, 585 education and training, 143
national innovation policy, 464–65 enabling environment for innovation and, 93, 456
organizational assessment, 560–61 exit strategies, 369b, 379
INDEX 653
public-private partnerships (continued) recommendations, 495–99
extension and advisory services, 190, 206b cluster-based business development and, 397–98
farmer organizations and, 63b coordination and collective action and, 21
investment context, 374–75 enabling environment for innovation and, 452–53, 457,
investment needs, 375–76 492–511, 522–25
investment rationale, 289–90, 362–63, 369b innovative activity profiles, 522–25
lessons learned, 294–95, 376–80 technical regulations and standards, 501–11, 502b
monitoring and evaluation of, 294–95, 294b, 379–80, 380b institutional frameworks and, 505, 505b, 505t
policy issues, 293–94, 376 investment context, 501–2
potential benefits, 293, 376 investment needs, 502–7, 503–4b, 503t
principles for, 377 lessons learned, 510–11
recommendations, 295–96 policy issues, 504, 508–10, 509b, 509t
research and, 90–94, 92b, 271, 274b, 289–96, 291–92b, 327b potential benefits, 507–8
sustainability, 379 public and private sector roles, 510
value chains and, 93 Reinventing Agricultural Education for the Year 2020 (U.S.), 128
public sector. See also public-private partnerships RELCs (Research-Extension-Linkage Committees, Ghana), 280b
assessment and, 550–51 representational partnerships, 294
coordination and collective action, 28 research, 261–360
extension and advisory services, 180, 189, 190t, 195, 196t in agricultural innovation system, 264–69
“extension-plus” approach, 218 codesigned innovations, 308–15
innovation networks, 48–49, 49b community-based, 157–59, 159b
intellectual property (IP) management, 483–84, 488, 517b decentralization of, 262–63, 270
local business development services (LBDSs), 205–7, equity issues, 270
205f, 209–10 financing for, 5b, 270, 271b
marketing chains, 57 ICTs and, 272–73, 272b
pluralistic extension systems, 201 initiatives to strengthen, 5–7, 6b
research financing, 5b innovation networks and, 48
role of, 12b innovative activity profiles, 326–49
value chains, 57, 93 investment context, 262–64
Puskur, Ranjitha, 326 investment needs, 270–75
PVRs (plant variety rights), 453b investment rationale, 261–62
monitoring and evaluation of, 275, 276t
R organizational framework for, 270, 277–88, 278b, 316–25,
Ragasa, Catherine, 275, 277 344–49, 345b, 346t, 348b
Rajalahti, Riikka, 1, 15, 34, 277, 381, 603 participatory, 262–63, 291b
Rapid Appraisal of Agricultural Knowledge Systems (RAAKS), policy issues, 269–70
45b, 571b public-private partnerships and, 90–94, 92b, 274b, 289–96,
regional research, 297–307 291–92b
equity issues, 302 reforms, 10
investment context, 297–99, 298b regional, 297–307
investment needs, 299–300 technology transfer and, 284–86, 285b, 331–37, 334–36b
lessons learned, 302–7 research councils, 21, 38–40, 38b
monitoring and evaluation of, 303–7, 304–5t Research-Extension-Linkage Committees (RELCs, Ghana), 280b
policy issues, 300–302 Research Into Use (RIU) program, 614–19, 616–18b
potential benefits, 300 RIR (Rural Infrastructure Revival), 247
sustainability, 302 risk capital, 414–20
Regional Unit for Technical Assistance (RUTA), 347 investment context, 414–15, 415f, 415t
Regional Universities Forum in Africa (RUFORUM), 133, 133b, investment models, 415–16
207, 301b lessons learned, 419–20
regulatory frameworks, 452–53, 457, 492–511 policy issues, 418–19
biosafety regulatory systems, 492–500 potential benefits, 416–18, 417–18b
capacity building for, 493b recommendations, 420
interministerial coordination for, 497–98, 498b venture capital funds, 415–16
investment context, 492 Rockefeller Foundation, 109b, 133b, 301b
investment needs, 493–94 Roseboom, Johannes, 449, 460, 501
lessons learned, 495–99 Rosenberg, N., 268
policy issues, 494–95 roundtables, 39b, 58
potential benefits, 494, 494b Royal Tropical Institute, 207
654 INDEX
rural areas Shining Path, 241
business development and, 369 Sierra Leone
coordination organizations in, 84–89, 85b, 86–87f, 87–88b, Farmer Field Schools in, 238
95–106 policy and planning assessment in, 589–92
enabling environment for innovation and, 454–55, 455b, Sistema Nacional de Innovación para la Competitivad
457–58 (SNIC, Chile), 80
higher education reform and, 157–59 skill gap analysis, 126b, 152
learning alliances in, 17b SOCAD (State Office for Comprehensive Agricultural
marketing chains and, 55 Development, China), 427
productive alliances in, 95–106 social capital. See also equity issues; gender issues
value chains and, 99 enabling environment for innovation and, 456
Rural Capacity Building Project (Ethiopia), 126 extension and advisory services and, 7
Rural Infrastructure Revival (RIR), 247 “extension-plus” approach and, 218
Rural Polytechnic Institute of Training and Applied Research innovation networks and, 48
(Mali), 156 marketing chains and, 56–57
rural productive alliances, 25–26, 99 national innovation policy and, 464
Rural Research and Development Council (Australia), 37b value chains and, 56–57
Rutgers Food Innovation Center (USA), 392, 393–94b social network analysis, 79b
Rwanda social targeting of local business development services, 209
agrodealer development in, 234b Society for Elimination of Rural Poverty (SERP, Andhra Pradesh),
gender-inclusive education in, 109b 31, 84–89
Sokoine University of Agriculture (Tanzania), 156
S South Africa
SACCAR (Southern African Center for Cooperation in cluster-based business development in, 401b
Agricultural Research and Training), 307b cluster-based development in, 399
SACCOs (savings and credit cooperatives), 183 education and training in, 129
SAE (Supervised Agricultural Experience), 110b governance of innovation systems in, 471, 473b
Safaricom, 185b no-till agriculture in, 72
Safe Food, Fair Food Project, 327b policy coordination organizations in, 474b
SAFE (Sasakawa Africa Fund Education) Program, 133, 154–56 public-private research partnerships in, 90
Samako Agricultural Institute (Mali), 156 regional research and, 307b
sanitary/phytosanitary standards, 502b strategic intelligence capabilities in, 476b
Sarapura, Silvia, 598 South Asia. See also specific countries
Sasakawa Africa Association, 154 education and training in, 108
Sasakawa Africa Fund Education (SAFE) Program, 133, 154–56 Southern African Center for Cooperation in Agricultural
Sasakawa–Global 2000, 71b Research and Training (SACCAR), 307b
satellite imagery, 8b Spielman, David J., 275, 277, 294
SAUs (state agricultural universities, India), 145–48 staff surveys, 558–59, 560b
savings and credit cooperatives (SACCOs), 183 startup funding, 416
scenario planning, 400, 603–6, 604t, 605f, 606b state agricultural universities (SAUs, India), 145–48
Schiffer, Eva, 593 State Office for Comprehensive Agricultural Development
science and technology councils, 21 (SOCAD, China), 427
science parks, 271–72 State University of Campinas (Unicamp, Brazil), 411b
SDC (Swiss Agency for Development and Cooperation), 45b, 211 strategic alliances, 374
Secondary Vocational Agricultural Education Program (U.S.), 128 Strategic Services Development Fund (Peru), 242–43, 320b
second-round funding, 416 Suale, David, 589
sector-specific incubators, 389–90 Sub-Saharan Africa
seed fund investment, 415, 422 education and training in, 108
Self Help Group Quality Improvement Program (SHGQIP), 247 extension and advisory services in, 190
self-help groups (SHGs), 84, 247, 526 farmer organizations in, 66
Senegal, agricultural research linkages in, 281–82b regional research coordination in, 297–98, 306–7b
SEP (Supervised Enterprise Project), 154, 155 research and development in, 264, 273
SERP (Society for Elimination of Rural Poverty, Andhra subsectoral coordination, 40–41
Pradesh), 31, 84–89 subsidies, 50
shared responsibility system, 361, 369, 370–71 Sulaiman, Rasheed, 213, 273
Sharma, Kiran K., 421 supermarkets, 53, 56b
SHGQIP (Self Help Group Quality Improvement Program), 247 Supervised Agricultural Experience (SAE), 110b
SHGs (self-help groups), 84, 247 Supervised Enterprise Project (SEP), 154, 155
INDEX 655
Supervised Student Internship Programs, 171 lessons learned, 410–13
sustainability policy issues, 410, 411–12
business incubators, 424 potential benefits, 409–10
coordination and collective action, 29 recommendations, 412–13, 413b
extension and advisory services, 189–90 training for, 407–8, 408t
“extension-plus” approach, 218 Tekes (Finnish Funding Agency for Technology and
Farmer Field Schools, 238 Innovation), 475b
innovation funds, 440–41 territorial innovation programs, 81b
innovation networks, 47–48 tertiary education and training, 122–62
local business development services, 210 comprehensive reform, 123–25, 124–25b
marketing chains and, 56–57 curriculum reform, 125–26, 126b, 131–35, 151–53
pluralistic extension systems, 200 innovative activity profiles, 145–53, 157–62
public-private partnerships, 379, 385 in-service training, 141–44
regional research, 302 institutional development and, 147
technician development, 139 investment context, 122–23
tertiary education and training, 147 investment needs, 123–28
value chains, 56–57 lessons learned, 128–29, 147–48
Swiss Agency for Development and Cooperation (SDC), 45b, 211 policy issues, 128
Swiss-Re, 327b potential benefits of investment, 128
systemic intermediaries, 221 program design, 128
recommendations, 129–30, 130b
T sustainability and, 147
Tanzania for technician development, 136–40
cluster-based business development in, 401b Thailand
extension and advisory services in, 187, 200, 207b coordination organizations in, 23b
Farmer Field Schools in, 238 education and training in, 125
gender-inclusive education in, 109b public-private partnerships in, 375b
innovation funds in, 440 public-private research partnerships in, 274b
research capacity building in, 318b Thailand Research Fund (TRF), 157, 158–59
tax incentives, 20, 364 thematic coordination, 40–41
TBIE (theory-based impact evaluation), 584b Thematic Notes
Technical Assistance and Support Services (TASS), 246 agricultural education and training to support AIS, 122–44
technician development, 136–40 agricultural research as part of AIS, 277–325
innovative activity profile, 163–64, 169–71, 170b coordination and collective action for AIS, 34–69
investment context, 136–37 enabling environment for AIS, 460–511
investment needs, 137–38, 137b extension and advisory services as part of AIS, 194–230
lessons learned, 139 innovation partnerships and business development, 374–420
policy issues, 138–39 assessing, prioritizing, monitoring and evaluating AIS, 546–88
potential benefits, 138 theory-based impact evaluation (TBIE), 584b
recommendations, 139–40 theory of change, 540b, 547–48, 547b
sustainability, 139 Theus, Florian, 396
technology consortiums, 81b, 338–43 third-round funding, 416
Technology Development Foundation of Turkey (TTGV), 384b Tianjin Women’s Business Incubator (TWBI, China), 392b
Technology Licensing Office (Thailand), 23b Timor-Leste, education and training in, 126, 165–68
technology parks, 367–68 Tocal College (Australia), 137b
technology transfer. See also Technology Transfer Offices (TTOs) ToT (Training of Teachers) program, 163–64
agricultural business development and, 406–13, 426–29 trade
agricultural research linkages and, 284–86, 285b extension and advisory services, 188
agrodealer development and, 232, 233b, 235b intellectual property (IP) management and, 482
financing, 5b Trade-Related Intellectual Property Rights Agreement
innovation brokers and, 226 (TRIPS), 481b
intellectual property (IP) management and, 482–83 training. See also education and training
research and, 284–86, 285b, 331–37, 334–36b farmer organizations and, 68
Technology Transfer Offices (TTOs), 368 for intellectual property (IP) management, 407–8, 408t,
governance and, 408–9 489–90, 490b
institutional framework and, 410, 485–86 training and visit (T&V) extension model, 182
investment context, 406–7, 407t Training of Teachers (ToT) program, 163–64
investment needs, 407–9 transforming economies, 265, 278b
656 INDEX
transparency coordination organizations in, 39b
competitive research funding and, 41b INIA, 39
coordination and collective action, 35 no-till agriculture in, 73t
extension and advisory services, 191 public-private research partnerships in, 274b
farmer organizations, 61 research and development in, 271b
governance and, 479
public-private partnerships, 377 V
TRF (Thailand Research Fund), 157, 158–59 value chains, 31, 52–58
Trinidad and Tobago, public-private research partnerships in, 90 cluster-based business development vs., 397
Triomphe, Bernard, 308, 435 cluster-based development and, 402
TRIPS (Trade-Related Intellectual Property Rights coordination and collective action, 31, 52–58
Agreement), 481b defined, 16b
Tropical Agriculture Research and Education Center, 344 investment context, 52–53
Tsinghua University (China), 409b investment needs, 53–55
TTGV (Technology Development Foundation of Turkey), 384b lessons learned, 57
TTOs. See Technology Transfer Offices niche markets and, 55
Turkey, matching grant schemes in, 383, 384b policy issues, 56–57
Turkey Technology Development Project, 384b potential benefits, 55–56
TWBI (Tianjin Women’s Business Incubator, China), 392b public and private sector roles, 57, 93
200 Markets Upgrading Program (China), 58 recommendations, 57–58
research financing and, 272
U rural productive alliances and, 99
UAP Insurance, 327b social capital issues, 56–57
Udayana University (Indonesia), 168 sustainability and, 56–57
Uganda Van Hall Larenstein University of Applied Sciences, 207
biosafety regulatory systems in, 496–97b Vasumathi, K., 246
business development services in, 201, 205, 205b Vega Alarcón, Rodrigo, 80, 338
cluster-based business development in, 404b Vegetable and Fruit Promotion Council, Kerala (VFPCK, India),
extension and advisory services in, 181b, 184, 186–87b, 200, 215b, 217b, 219b
205b, 206b Veldhuizen, Laurens van, 435
Farmer Field Schools in, 238 Vende Project (Paraguay), 405b
gender-inclusive education in, 109b Venezuela
innovation brokers in, 226 no-till agriculture in, 72
technical regulations and standards in, 506–7b public-private research partnerships in, 90
technical skill development in, 163–64 venture capital funds, 46, 63b, 361, 368–69, 415–16
Uganda Fish Processors and Exporters Association, 404b vertical coordination, 20
Unicamp (Brazil), 411b veterinary medicines, 516–21, 517–18b
Union Training Centers (India), 25b Vietnam, biosafety regulatory systems in, 500b
United Nations, 2b Villagro Network, 224b
United Nations Educational, Scientific, and Cultural vocational education and training (VET), 109, 136–40
Organization (UNESCO), 111
United Nations Industrial Development Organization W
(UNIDO), 430–34, 431–33b Wadi Programme of Dharampur Uththan Vahini (India), 216b
United States Wageningen University and Research Center, 125, 149–50, 163
business incubators in, 391 Wartenberg, Ariani, 607
cluster-based development in, 399 Waters-Bayer, Ann, 435
education and training in, 127–28, 152–53 West Africa. See also specific countries
no-till agriculture in, 70, 73t Agricultural Productivity Project, 264
public-private research partnerships in, 90 biosafety regulatory systems in, 522–25
vocational education in, 109 Center for Crop Improvement, 299b
United States Agency for International Development (USAID), Network of Peasant and Agricultural Producers’ Organizations, 60
109b, 111, 112b, 160, 234b, 262, 405b Seed Alliance, 285b
University of Abomey-Calavi (Benin), 156 Whirlpool Company, 27b
University of Beijing (China), 409b Williams, Melissa, 84, 526
University of Cape Coast (Ghana), 155–56 Wine Industry Network for Expertise and Technology
upward accountability, 217 (Winetech), 401b
urbanized economies, 265 Wines of South Africa (WOSA), 401b
Uruguay Winrock International Institute for Agricultural Development, 154
INDEX 657
W.K. Kellogg Foundation, 128, 160 X
women. See gender issues Xavier Labour Research Institute, 217b
Women’s Development and Leadership Develpoment Programs
(India), 25b Y
Wongtschowski, Mariana, 435 Yangling High Technology Agricultural Demonstration
World Bank Zone, 427
on education and training, 108
education financing, 111, 112, 138 Z
extension and advisory services, 181b, 240b, 241, 243 Zambia
farmer organizations and, 67 agricultural business development in, 512–15
learning alliances and, 347 business development services in, 207
public-private partnerships and, 384b, 385b, 404b education and training in, 117b
research and development investments by, 5b, 6, 263, 323b gender-inclusive education in, 109b
research centers, 262 Zamorano University (Honduras), 133
rural productive alliances and, 96 Zeng, Douglas, 396
World Development Report 2008 (World Bank), 265 Zonal Agricultural Research and Development Funds
WOSA (Wines of South Africa), 401b (ZARDEFs), 318ba
658 INDEX
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R
esearch, education, and extension investments, while usually necessary, are often
insufficient alone to bring knowledge, technologies, and services that enable farmers
and entrepreneurs to innovate. Efforts to strengthen research systems and increase
the availability of knowledge have not increased innovation or the use of knowledge in
agriculture at the pace or the scale required by the intensifying and proliferating challenges
confronting agriculture. Agricultural Innovation Systems: An Investment Sourcebook contributes to the
identification, design, and implementation of the investments, approaches, and complementary
interventions most likely to strengthen agricultural innovation systems (AIS) and to promote
innovation and equitable growth. The Sourcebook provides a menu of tools and operational
guidance, as well as good practice lessons, to illustrate approaches to designing, investing in,
and improving these systems.
Managing the ability of agriculture to meet rising global demand and to respond to the changes
and opportunities will require good policy, sustained investments, and innovation—not business
as usual. Experience indicates that aside from a strong capacity in R&D, the ability to innovate
is often related to collective action and coordination, exchange of knowledge among diverse
actors, incentives and resources available to form partnerships and develop business, and an
enabling environment. While consensus is developing about what is meant by “innovation” and
“innovation system,” no detailed blueprint exists for making agricultural innovation happen at a
given time, in a given place, for a given result. That said, the AIS approach, which looks at these
multiple conditions and relationships that promote innovation in agriculture in specific contexts,
has moved from a concept to a subdiscipline with principles of analysis and action.
Drawing on approaches that have been tested at different scales in different settings, this
Sourcebook emphasizes the lessons learned, benefits and impacts, implementation issues, and
prospects for replicating or expanding successful practices.
The Sourcebook reflects the experiences and evolving understanding of numerous individuals
and organizations concerned with agricultural innovation, including the World Bank. It targets
the key operational staff who design and implement lending projects in international and
regional development agencies and national governments, as well as the practitioners who
design thematic programs and technical assistance packages. The Sourcebook can also be an
important resource for the research community and nongovernmental organizations.
ISBN 978-0-8213-8684-2
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9 780821 386842
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