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SCIENCE, TECHNOLOGY, RESEARCH AND INNOVATION FOR DEVELOPMENT (STRIDE)

Agribusiness Innovation Ecosystem Assessment May 2017

Science, Technology, Research and Innovation for Development (STRIDE):

Agribusiness Innovation Ecosystem Assessment

Prepared for USAID/Philippines/Office of Education

Prepared by RTI International 3040 Cornwallis Road Post Office Box 12194 Research Triangle Park, NC 27709-2194 RTI International is a registered trademark and a trade name of Research Triangle Institute.

RTI International is one of the world’s leading research institutes, dedicated to improving the human condition by turning knowledge into practice. Our staff of more than 3,700 provides research and technical services to governments and businesses in more than 75 countries in the areas of health and pharmaceuticals, education and training, surveys and statistics, advanced technology, international development, economic and social policy, energy and the environment, and laboratory testing and chemical analysis. For more information, visit www.rti.org.

This publication was produced for review by the United States Agency for International Development. It was prepared by RTI International. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. Cover photo credit: Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development.

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Acknowledgments

TheauthorswishtoacknowledgewithappreciationandrespectthecontributionsandsupportprovidedbytheUnitedStatesAgencyforInternationalDevelopment(USAID)/Philippines.WealsoacknowledgetheactorsinthePhilippineagribusinessinnovationecosystem,includingtheGovernmentofthePhilippines,whogavetheirtimeandinsightstothisstudy;afulllistofintervieweesisprovidedintheappendix.

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Contents

PAGE

List of Figures ....................................................................................................... vi

List of Tables ........................................................................................................ vii

Abbreviations ....................................................................................................... viii

Introduction ............................................................................................................ 1

Rapid Assessment Methodology and Crop Overviews .................................... 5

Interview Approach ........................................................................................... 5Value Chain Selection ...................................................................................... 5Interviewee Identification .................................................................................. 6

Innovation-to-Growth Pathway .............................................................................. 8

1. Identification of Need ................................................................................ 82. Generation and Testing of Innovations .................................................. 12

University Research ................................................................................ 12Private Sector R&D ................................................................................. 15Startups and Entrepreneurs ................................................................... 16Government Research ............................................................................ 17

3. Transition Pathways ............................................................................... 17Social Pathways ..................................................................................... 18Commercial Pathways ............................................................................ 20

4. Innovation Introduced to Users .............................................................. 275. Innovation Used to Upgrade Operations ................................................ 30

Key Findings and Recommendations .................................................................. 32

Recommendations ......................................................................................... 33Recommendations: ........................................................................................ 34Recommendations: ........................................................................................ 36Recommendations: ........................................................................................ 38Recommendations: ........................................................................................ 39Recommendation: .......................................................................................... 40

References .......................................................................................................... 41

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Appendix: List of Organizations Interviewed ....................................................... 42

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ListofFigures

PAGE

Figure 1. RTI Innovation Ecosystem Model ........................................................... 1

Figure 2. 2014 STRIDE Innovation Ecosystem Scorecard .................................... 2

Figure 3. Innovation to Growth Pathway ............................................................... 4

Figure 4. Overview of the Crops Addressed in This Paper: Mango, Cacao, and Coffee ....................................................................................... 7

Figure 5. Technology Transfer Actors in the Agricultural Extension System ....................................................................................................... 27

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ListofTables

PAGE

Table 1. Government Bodies Quick Reference ..................................................... 8

Table 2. Government Agricultural Research Prioritization ..................................... 9

Table 3. Extension Modalities in the Philippines ................................................. 28

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Abbreviations

ATI Agricultural Training Institute

BPI Bureau of Plant Industry

DA Department of Agriculture

DA-BAR Department of Agriculture-Bureau of Agricultural Research

DOST Department of Science and Technology

DTI Department of Trade and Industry

FDA Food and Drug Administration

FPA Fertilizer and Pesticide Authority

IP intellectual property

ISP industry strategic plan

ITDI Industrial Technology Development Institute

KTTO Knowledge and Technology Transfer Office

LGU Local Government Unit

NGO nongovernmental organization

NMRDC National Mango Research and Development Council

PCAARRD Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development

PCIEERD Philippine Council for Industry, Energy, and Emerging Technology

PhilMech Philippines Center for Post-Harvest Development and Mechanization

PhP Philippine pesos

R&D research and development

SMEs small and medium enterprises

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STRIDE Science, Technology, Research and Innovation for Development

SUCs state universities and colleges

TOT training of trainers

TTPD Technology Transfer and Promotion Division

UPLB University of the Philippines-Los Baños

USAID United States Agency for International Development

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Introduction

TheScience,Technology,ResearchandInnovationforDevelopment(STRIDE)programaimstostrengthenthecapacityofPhilippineuniversitiestoconductscienceandtechnologyresearchalignedwiththegrowthneedsoftheprivatesector.The5-yearUnitedStatesAgencyforInternationalDevelopment(USAID)-fundedprogram,implementedbyRTIInternational,aimstodriveinclusivegrowthbyimprovinguniversities’research,policy,andmanagementcapacitiesandengagementwiththeprivatesector.STRIDEworkscloselywithuniversitiesandindustriestocreateanetworkofresearchers,entrepreneurs,andinvestorswhoinnovateandturnideasintoproductsandcompanies.Todothis,weencourageindustriestobecomeactivestakeholdersinuniversityresearch,assistuniversitiestobecomemarket-drivenproviders,andbuildinstitutionalstructurestosupportandsustainthissystem.Theprogramhelpsuniversitiesdevelopappliedresearchcapabilitiesandtechnicalcurriculaandbuildaprofessionalworkforcewithworld-classtechnology.Asaresult,theprogramteamhopesthatmorePhilippinegraduateswillbeequippedtoparticipateintheglobaleconomyasemployees,researchers,andentrepreneurswithinthePhilippines.

AgribusinessisaprioritysectorfortheSTRIDEprogram.ThirtypercentofthePhilippineworkforceisengagedinagriculture(WorldBank,2016),andwithaveragefarmsizesbelow2hectares,agricultureisintrinsicallylinkedtopovertyandis,therefore,vitalforinclusivegrowth(Lowder,Skoet,&Singh,2014).Inthiscontext,innovationwithinthesectorcanhavetransformationalimpactsonproductivity,income,andemployment.Forexample,amangodisease-managementtechnologycouldincreaseyieldsforthe2.5millionsmallholderfarmersengagedinmangoproductionandincreasesalesforinputproviders,traders,andprocessors.However,simplyinventingthetechnologywillnotachievethis.Inagriculture,morethaninanyothersector,thecomplexdynamicsoftheinnovationecosystemcanfacilitateorimpedethegeneration,dissemination,andadoptionofsuchinnovations.

Anagriculturalinnovationisanewtechnologyor

Figure 1. RTI Innovation Ecosystem Model

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practicethatcanbeadoptedbyaproduceroragribusinessto“upgrade,”orimprove,operations,typicallyresultingingreateryields,higherqualityproducts,costsavings,orimprovedsustainability.Theagriculturesectoriscontinuouslyinnovatingandupgradingtoadapttothechangingenvironmentandmarketconditionsandimprovecompetitiveness.Aninnovationecosystemincludesalltheactorsinvolvedinresearchandinnovationandinthepoliciesandsocialnormsthataffectactors’behaviorsintheecosystem(Figure1).Theecosystemapproachlooksattheinterlinkagesandinteractionsamongactorsintheinnovationeconomyandtheimportanceoftheincentivestheyencounterinthepursuitofinnovation(Wessner,2005).Awell-developedinnovationecosystemlinkstheinterestsofindividualactorswiththeecosystemintransformingideasintousefulproductsandservices.Further,ahealthyinnovationecosystemchannelssomeoftheprofitsfromtheprivatesectorintoresearchandinnovation,resultingininnovativecommercialproductsthatgrowtheeconomy.Whenthissucceeds,itcreatesavirtuouscycleofmoreresearchandinnovationandmoreinnovation-drivenprofitsintheeconomy,pertheSTRIDEInnovationEcosystemAssessmentof2014(RTI,2014).Thissector-neutralreportassessedthesixfactorsinthePhilippineinnovationecosystem,intermsofsupply,demandandtheenablingenvironment,asshowninFigure2.

Figure 2. 2014 STRIDE Innovation Ecosystem Scorecard

The2014assessmentalsoledtofourkeyfindings,whicharesummarizedbelow:

1. One-size-fits-alloverlycomplicatedprocurementlawsslowtheprocurementofresearchequipment,diminishingresearchandinnovationproductivity.

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2. Researchgrantsdonotcompensateuniversitiesforresearchers’time,leadingtocompetitionwithresearchers’teachingresponsibilities.

3. Universitieshaveunrealisticexpectationsforpatentrevenue,whichdiscouragesindustrypartnerships.

4. Mutualmistrustandmisunderstandingbetweenuniversityandindustrystrainscollaboration.

TheseissueswerevalidatedbykeyplayerswithintheinnovationecosystemandhavebeentargetedbySTRIDEanditspartnerssincethereportwasreleased.

The2014reportassessedfactorscommonacrossallsectors.However,whilethecross-sectoralfindingshavegeneralrelevance,therearesectoralfactorsthatdonotemergefromtheoriginalstudy.Toexploreoneofthekeysectorsmoredeeply,STRIDEinitiatedafollow-upagriculture-specificassessment.Theinnovationecosystemforagriculturefunctionsinwaysthatareuniqueincomparisontoothersectors.Becauseagricultureisintrinsicallylinkedtopovertyandfoodsecurity,dominantinstitutionswerefoundedonandmaintaintheethosthatagriculturalinnovationsarepublicgoods,developedforthebenefitofthefarmer.Throughthispaper,weexploretheimplicationsofthisethosonthediffusionandcommercializationofinnovation.Furtherdifferentiatingthesector,theGovernmentofthePhilippinesisheavilyinvolvedinboththefundingofagriculturalresearchandthetransferoftechnologies,andusersofagriculturaltechnologiesaredispersed,whichimpedesthediffusionofinformation.

Thepurposeofthisreportistoassesstheinnovationecosystem,specificallyforagribusinessinthePhilippines.ItaimstoinformSTRIDEanditsstakeholdersaboutthevariousactorsintheagribusinessinnovationecosystemandhowtheyareconnectedandidentifystrengths,weaknesses,andopportunitiesforinterventionstoimproveitsoverallfunctioning.Thereportdoesnotpresenttheopinionsoftheresearchersbutrathercompilestheperspectivesofvariousstakeholderswithintheecosystem.Withinagriculture,theassessmentfocusedonthreespecificvaluechains—cacao,coffee,andmango—asrepresentativeexamplesforthesectorwritlarge.Manyoftheelementsoftheinnovationecosystem,suchasgovernmentextensionandresearchfundingentities,arecommontoallcrops;thus,thefindingsaregeneralizable.

Thestructureofthereportoutlinesfivestagesonthepathwayfrominnovationtoagriculturalgrowth(Figure3).Weadapttheframeworkusedinthe2014assessmenttodelineatethispathway.Ineachstage,weanalyzethekeyactors,relationships,andcriticalfactorsthatfostersuccessfulinnovation.

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Figure 3. Innovation to Growth Pathway

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RapidAssessmentMethodologyand CropOverviews

TheSTRIDEteamdevelopedacustommethodologytoenableadeepdiveintotheinnovationecosystemwhileensuringthattheassessmentwasconductedinatimelyandefficientmanner.Giventherobustanddiverseagribusinesssector,twocoreelementstothisapproachincludethefollowing:(1)developingaframeworkandresultingquestion“guide”ratherthanemployingafixedsurvey,and(2)selectingvaluechainsthatcouldberepresentativeoftheecosystem.

INTERVIEWAPPROACH

Theassessmentteamusedaquestionguidebasedontheconceptualframeworktoensurethatkeytopicswerecoveredwhileallowingforinterviewstorevealunanticipated,relevant,andinterestinginformationabouttheagriculturalinnovationecosystem.Additionally,thisstrategyallowedinterviewstobeconversational,encouragingrespondentcandor.Thisopen-endedapproachtodatacollectionwasnecessarybecausetheassessmentisaprocessoflearningabouttheinnovationecosystemandhowstakeholdersviewitsfunctioning.

VALUECHAINSELECTION

Whereasmanyecosystemfunctionsarecommonacrossallagriculturalvaluechains,weselectedthreespecificvaluechainstoallowforamorein-depthassessmentofsupplyanddemandactors.STRIDEfocusedoncacao,coffee,andmango—smallholder-dominatedcropswithgrowingmarkets,butthatrequireadoptionoftechnologiesandinnovationstomeetmarketpotential.Wedidnottargetcropsproducedprimarilyonplantationsbymultinationalcompanies,suchasbananasandpineapples,thesecompaniesareexpectedtosourcetheirnewtechnologyinternationally.Likewise,spicesandothernichecropswereeliminatedbecauseoftheirmodesteconomicsignificance.Cacao,coffee,andmangoareincludedintheDepartmentofAgriculture’s(DA’s)HighValueCropsDevelopmentProgramandfacegrowingdomesticandinternationaldemand.Theselectionprocesswasconductedin

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consultationwithseveralPhilippineagriculturalexperts.InFigure4,weprovideahigh-leveloverviewofeachvaluechainandthetypesofinnovationusedateachstageofproduction.

INTERVIEWEEIDENTIFICATION

Theassessmentteamconductedover65interviewsintheagribusinessinnovationecosystemoverthecourseoffivemonthsin2016.Ourobjectivewastoconductinterviewswithrepresentativesofeachecosystemfunctionandforeachvaluechain.Weidentifiedintervieweesthroughbackgroundresearchandpreviouslyconductedvaluechainstudies,STRIDEprojectandpersonalcontacts,andthe“snowball”method(referralsfrominterviewees).Afulllistofintervieweesisincludedintheappendix.1

1Wedorecognizethatsomebiasmayexistamongthoseactorswhoarewillingtobeinterviewed.Forexample,companiesthataremoreprotectiveabouttheirinnovationstendtobelesswillingtosharetheirpracticesandcontributetothisreport.Wetrytoincorporatethisintoourfindingsandtriangulatethroughinterviewswithindustryrepresentatives,suchasthechamberofcommerce,whocanspeakonbehalfofsuchorganizations.

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Figure 4. Overview of the Crops Addressed in This Paper: Mango, Cacao, and Coffee2

2 Data sources: FAOSTAT, UN Comtrade.

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Innovation-to-GrowthPathway

Thissectionassessestheinnovationecosystemateachofthefivestagesofthepathway,highlightingkeyfindingsfromourinterviews.Foreachstage,weassesstherelationships,actors,andpolicyfactorsthataffectinnovation.

1. IDENTIFICATIONOFNEED

Thefirstcriticalstageintheinnovation-to-growthpathwayistheidentificationofaneedforinnovation.Foragriculture,inthisstage,privatesectoractors,suchasfarmers,agro-inputcompanies,orprocessors,identifychallengesorinefficienciesintheiroperationsthatcouldbeimprovedormademorecompetitivewithaninnovation.Themostimportantelementofthisstageisthatinnovators(includingresearchers)canaccuratelyidentifytheseneeds.Thus,strongrelationshipsbetweenresearchandindustryarecrucial.Inthissection,wediscusstheprimarywaysthroughwhichinnovatorsgaininsightintoagribusinessneeds.

InthePhilippines,thegovernment(withstakeholderinput)assumestheprimaryroleofidentifyingneedsforagriculturalinnovationandcommunicatingthoseneedstouniversityresearchers.Thegovernmentofferssubstantialfundingthroughvarioussources—primarilytheDepartmentofScienceandTechnology(DOST)andDA—thatcanbeaccessedbyuniversityandpublicsectorresearcherstoconductresearchandgenerateinnovations.(Table1providesa

quickreferencetogovernmentbodies;Table2aguidetoresearchprioritizationprocesses.)TheDOSTdevelopsprogramsalignedwithnationalR&Dpriorityareasandsubmitsbudgetrequeststofundthem.DOSTfundingprioritiesalsoalignwiththeindustryroadmapsdevelopedbytheDepartmentofTradeandIndustry(DTI).Thus,insomecases,thereisadirectdemandforR&Dfromaspecificindustryassociation.Inthepast,theDOSTacceptedunsolicitedproposals.Now,itidentifies

Table 1. Government Bodies Quick Reference

GOVERNMENT AGENCY RELEVANT SUB-AGENCIES

DOST Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) Philippine Council for Industry, Energy, and Emerging Technology (PCIEERD)

DA Bureau of Plant Industry (BPI) DA-BAR Agricultural Training Institute (ATI) Philippines Center for Post-Harvest Development and Mechanization (PhilMech)

DTI

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needsforresearchandonlyfundsproposalsthatadheretothosespecificdemands;however,persomeinterviewees,thischangehasnotbeenfullyrealizedacrossallDOSTarms.TheDA-BureauofAgriculturalResearch(DA-BAR)isalsoasubstantialsourceofpublicfundingforagriculturalinnovation.

Table 2. Government Agricultural Research Prioritization

AGENCY RESEARCH PRIORITIZATION AND ALIGNMENT WITH INDUSTRY NEED

PCAARRD

• Develops an industry strategic plan (ISP) for each priority commodity (including mango, coffee, and cacao).

• The ISP process includes a stakeholder meeting to ensure that the plan addresses private sector needs.

• Productivity levels for each crop are benchmarked against other countries, and gaps to achieving productivity are identified.

• Once the ISP is established and validated, researchers submit proposals for research to address specific needs.

• The proposal evaluation process includes validation of the local market demand for the innovation.

DA-BAR

• Research priorities align with DA-BAR’s 6-year strategy based on the political cycle. • The priorities are informed by a consultative process with a broad range of stakeholders.

However, some interviewees noted that farmers are underrepresented in the consultative process and that, sometimes, the events are conducted in English, which some farmers do not speak.

• Research proposals are accepted on a rolling basis in alignment with strategic directives.

• A second stage of proposal review is conducted with industry, and the proposals are evaluated based on the potential for dissemination of the research findings.

BothDAandDOSTemploymulti-stageproposalevaluationprocessesandincorporatemechanismstoensuretheindustryapplicabilityoftheresearch.However,severalintervieweesfromtheprivatesectorperceivedfundedresearchtobeimpracticalornotusefultoindustry.Onerespondentnotedthatresearchersarenotrequiredtoidentifyanyrealmarketdemandbeforereceivingfunding;althoughtheDOSTinvitestheprivatesectortoevaluateproposals,theseoutsidereviewersarenotprovidingfundingandare,therefore,lesscriticalintheirevaluations.OneDArepresentativetoldtheresearchteam,“Allresearchshouldhaveanapplication—thatisourweakness.Researchersareconfinedbythefourcornersofaroom.Butresearchshouldbefortheneedsofthepeople,notforeducationpurposes.”Oneuniversity-basedintervieweesuggestedthatobtainingin-kindcommitmentsfromprivatesectorcounterpartsattheproposalstagewouldimproveviability:“Itshowsthatsomeoneactuallywantstoselltheproduct.”Someprojectsandfundersalreadydothis,butitisnotthenorm.

Thepublic-sectorresearchprioritizationandfundingprocess,whichisdescribedabove,isonemethodofidentifyingandcommunicatingneeds

FindingSomestakeholders

perceivegovernment-fundedresearchas

“impractical”or“notusefultoindustry.”

FindingFarmersarenotwell-representedinthe

processofidentifyingneedsforinnovation.

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foragriculturalinnovation.Anothermodalityisdirectlinkagesbetweenindustryandacademe.Ifstudentsanduniversityresearchershavedirectconnectionstofarmersorcompanies,theycanmoreseamlesslyidentifyneedsforinnovation.However,ourresearchuncoveredveryfewinstancesofdirectacademe-businesslinkages.Indeed,onlyahandfulofone-offinstancesinwhich,becauseofaresearcher’sownnetworkorexperience,s/hewasawareofaneedforinnovationwereidentified.Studentsinnon-agriculturalfields(notably,engineers)whocomefromfarmingfamiliesmaybeawareofrelevantchallengesandhaveadesiretodevelopsolutions.However,itwasnotedthat,particularlyforengineersandchemists,ifstudentsdonothaveapersonalconnectiontoagriculture,itisunlikelythattheywillbecomeawareoftheneedsforinnovationinthissectorthroughtheireducation.OnenotableexceptionisNestlé,whichengageswithuniversitiesandundergraduatestudentstoinnovateonissuesrelatedtocoffee,nutrition,andtheenvironment.

Facultyresearchersmaybeabletobuildrelationshipsbyconsultingforprivatecompanies;however,mostsuchconsultingopportunitiesarisethroughexistingrelationships.Administrativebarrierspreventuniversitiesfromcapitalizingonfacultyconsultingarrangementsandinstitutionalizingrelationshipswithindustry,asdiscussedfurtherinSection5.

PrivateagribusinessesrarelydrawontheexpertiseofPhilippineuniversitiesforR&D.Large-scale,commercialgrowerscanmoreeasilycollaboratewithinternationalresearchersthroughtheiraffiliationswithlargeinternationalbuyers.OnesuchcompanymentionedthatresearchwithPhilippineuniversitiesisoftendrivenbytheinterestsoftheresearchers,ratherthanmarketdemand.Additionally,theynotedthattheydonotperceiveuniversityresearchasusefuland,therefore,donotactivelypursueit,althoughresearcherssometimesapproachthemaboutcollaborations.Oneagribusinessrepresentativedescribedhowauniversityapproachedtheircompanytoaskforaco-investmentinthedevelopmentofalocalenzyme.However,thebusinessprojectedthattheproductwouldneverbeprofitable,andthus,declinedthecollaboration.Thisexampleunderscorestheneedformarketvalidationinthefirststageofinnovation.Oneintervieweedidnotethatalarge,multi-nationalfruitcompanyhadcommissionedsomespecificresearchrelatedtofertilizerfromtheUniversityofthePhilippines-LosBaños(UPLB.)

Additionally,mutualmistrustpermeatesindustry-academerelationships,andbureaucratichurdlesandIPconcernscandissuadecollaboration,reiteratingthefindingsfromSTRIDE’s2014study.Oneintervieweenotedthatacompanywasplanningtocommissionapublicuniversitytodevelopenzymes;however,6monthsintothenegotiations,thepaperworkhadstillnotreachedtheuniversityapprover.Insomecases,privatesectorintervieweesdemonstratedaninterestinleveraging

FindingDirectrelationships

betweenacademeandagribusinessesarerare.

FindingPrivateagribusinessesrarelydrawonthe

expertiseofPhilippineuniversitiesforR&D.

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universityexpertisebutcouldnotidentifytheappropriateexpertsorwereunawareofspecificcapacitiesforinnovation.Further,privateagribusinessesmentionedlackingrealincentivestocollaboratewithuniversities.

Inonenotableexceptiontothisfinding,theagro-inputcompanyLaFilipinaUyGrongarecentlydonatedfacilitiestoCentralLuzonStateUniversityandUPLBforresearchonhogsandanimalfeednutritioncontent.Thisdonationwaspartlyintendedtoachievecorporatesocialresponsibility,butthecompanyalsoexpectsthatthesefacilitieswillpositivelyimpactthetrainingandrecruitingofgraduatesandtheprovisionofresearchandtestingservicesfortheirfeeds.Wedidnotencounteranythingsimilarinourselectedcropvaluechains.

Industryassociationsorsector-specificresearchcentersmaybemorelikelytoconnectwithuniversitiesthanindependentcompanies.Oneprivateuniversityreportedworkingdirectlywiththenationalcoffeeresearchcentertoidentifyresearchneedsandsolutionsinthesector.Similarly,thecacaoindustryassociationinMindanaoispartneringwiththeUniversityofSouthernMindanaoonclonalimprovementsforpestanddiseaseresistance.

Anotherformofuniversity-privatesectorlinkagethatcanfacilitatetheidentificationofneedsforinnovationisagriculturalextension.3Universitiesareresponsibleforextension,andsomefacultyaremandatedtodividetheirtimebetweenteaching,research,andextension.4Thisoccurstovaryingdegreesacrossfacultyanduniversities,andtheincentivesforextensionareweakerthanthoseforresearchandteaching,althoughfacultycanreceivehonorariaforextension.Universitiesinagriculturalproductionareas,suchasDavao,arenaturallymoreinvolvedinfarmerextensionthanthoseclosertoManila.IntervieweesatUPLBindicatedthatfacultyparticipateinextensionbutonlywhendoingsoispartoftheirresearchprojects.

Needscanalsobeidentifiedwithintheprivatesectororbyindividualentrepreneurs.Thissectionhasfocusedlargelyonhowuniversityresearchersidentifyneedsforagriculturalinnovationsbecausetheyaredisconnectedfromindustry.Withinprivatecompanies,thisprocessismucheasier;one(multinational)inputcompanydescribedusingitsdistributorstoconductlocalmarketresearchtoinformnewproductdevelopment.Similarly,alocalinputdistributor,whichsellsprimarilytoplantations,reportedbeingapproacheddirectlybytheplantationwhenanewproductisneededandthensourcingitlocallyorabroad.SomeprivatesectoractorscommunicateR&Dneedsdirectlytothe

3Farmertrainingandtechnologydemonstration.AgriculturalextensionisdiscussedindepthinSection3D.4Inbetweenresearchandpublicationofthisreport,theCommissiononHigherEducationissuedanorderwhichmaychangethesemandates.

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FindingGovernmentfundingis

perceivedtobeconcentratedatUPLBandotherlargeuniversities

closetoManila.

governmentagenciesthatcanhelpaddressthem—mainlytheDAandDOST.PrivatecompaniescancontractDOSTagenciestoconductresearchdirectlyorsubmitarequesttotheDAforpubliclyfundedresearch.ThefollowingsectionincludesadiscussionofPhilMech,IndustrialTechnologyDevelopmentInstitute(ITDI),andprivatesectorR&D.

2. GENERATIONANDTESTINGOFINNOVATIONS

Onceaneedforinnovationhasbeenidentifiedandcommunicatedtoinnovators,theinnovationmustbegeneratedandtested.Inthissection,wediscusstheprimarywaysthroughwhichagriculturalinnovationsaregeneratedinthePhilippinesandthecriticalfactors—namely,fundingandresearchcapacity—thatenableinnovationatthisstage.

UNIVERSITYRESEARCH

MostagriculturalresearchandinnovationinthePhilippinesoccursinuniversitiesandisledbyindividualfacultymembers.Asdiscussedintheprevioussection,PhilippineuniversitiesprimarilyaccessagriculturalresearchfundingfromPCAARRDandDA-BAR,whichhadresearchbudgetsofapproximately650millionand1.2billionPhilippinePesos(PhP),respectively,in2015.PCIEERDandtheCommissiononHigherEducationalsoofferfundingforagricultureandfoodprocessing.5

WhereastheDOSTreleasesspecificcallsforproposalswithfixedbudgetceilingsandapplicationdeadlines,DA-BARhasanopenfundingwindow.DA-BARisviewedbysomeresearcherstohavelesscumbersomeandtime-consumingproposalrequirementsandtobefarquickeratdispersingfundingthanDOST.Accordingtoonesource,fundingfromDOSTmaytakeaslongasayeartobedisbursed,andfundingamountscanchange.

Accesstofundingvariesbyuniversityandresearcher.FacultywithstrongreputationsatrelativelyprestigiousschoolsclosertotheManilaareacanaccessresearchfundsandaresometimesapproacheddirectlybyfundersfortargetedresearch.Infact,intervieweesperceivedthat50‒70percentofPCAARRDfundinggoestoUPLB.6Incontrast,DA-BARfundingismoregeographicallydispersed,althoughnearlyonethirdgoestoUPLB.PCAARRDsolicitationsareannouncedandbidthroughtheirregionalresearchconsortia(describedinmoredetailinSectionD),butnotall

5Asof2008,thePhilippines’agriculturalresearchintensityratio(shareofspendingonresearchtoagriculturalgrossdomesticproductwasinlinewiththoseofIndonesia,Bangladesh,andThailandbutbehindthoseofMalaysia,China,andIndia(ASTI2013).Morerecentbenchmarkingdatawerenotavailableatthetimeofthisstudy.6ResearcherscouldnotacquireanaccuratefigurefromPCAARRD,butPCAARRDintervieweesestimatedthatthepercentagewaslower.

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FindingNationalfundingfavorsexperiencedresearchers.

FindingTheuniversitiesmostcloselyconnectedto

farmersmaybeleastlikelytoaccessresearchfunding.

universitiesinaregionaremembersoftheseconsortia.

Governmentfundingfavorsexperiencedresearchersbecauseitisheavilydependentonthetrackrecordsofboththeuniversityandtheresearcher.Therefore,itcanbedifficultforyoungresearcherstoaccessfunds,particularlyatlesser-knownuniversities.Someuniversitiesrecognizethisissueandtrytopairjuniorandseniorresearchersonprojects,andsomefundingopportunitiestargetjuniorfacultyspecifically.Nationalfundingisalsodifficultforfirst-timeresearchersanduniversitiestoaccessbecauselocatingthesolicitationsandguidelinescanbechallenging.Oneresearcherataprivateuniversityreportedbeinginterestedinnationalfundingbutcompletelyunawareofwhereorhowtolocatesuchfundingopportunities,evenafterconductingwebsearchesonfunders’websites.TheauthorsofthisreportsearchedonlineandfoundthatfundingguidelinedocumentationisavailableonthePCIEERDandDA-BARwebsites,butitisscatteredacrossmultipledocumentsandunclearwhetheritisup-to-date.WewereunabletolocateresearchfundingguidelinesonPCAARRD’swebsite.

Someresearchersareapprehensiveaboutsubmittingproposalsonlineforfearoflosingownershipoftheirresearchidea.Thatis,thereisaperceptionthatlesser-knownresearchers’goodideasmayberedirectedtoresearcherswithwhomthefundingagencyismorefamiliar.Regardlessofitsveracity,thisperceptioncandiscouragenewresearcherswholackapersonalconnectionwiththefundingagencyfromsubmittingproposals.

Channelingfundingtouniversitiesandresearcherswithstrongreputationsreducestherisktofundersandmay,tosomeextent,beattributabletothoseuniversities’objectivelystrongerscientificcapabilities.However,foragriculture,morethananyothersector,theseadvantagesmustbebalancedagainsttherelevanceoftheresearchandextensionadvantagesofuniversitiesbasedinkeyagriculturalproductionareas,especiallyMindanao.UniversitiesthatarefarfromManilaandhavestrongerconnectionstofarmersmayhavebetterinsightregardingpracticalandmarketableinnovationsandbebetterpositionedtodisseminateimpactfulappliedagriculturalresearch.However,theseuniversitiesmayalsohavemoredifficultyaccessingresearchfunding(despiteactiveeffortsfromPCAARRDandDA-BARtoreachregionaluniversities).

Onepotentialconstrainttoaccessingfundingisproposalwritingcapacity,althoughthisissueisnotuniquetoagriculture.Awiderangeofproposalwritingabilitiesexistsamongresearchersandisnotcorrelatedwithresearchquality,asnotedbyintervieweesandobservedbySTRIDE.However,mostuniversitiesdonotprovideproposaldevelopmentoreditingservices.STRIDEobservedthatresearchofficesdonotfunctionasproposalgatewaysforfaculty.Furthermore,someresearchersmaybe

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intimidatedbytherequirementsinvolvedinapplyingforandadministratingresearchfundingandbediscouragedfromapplying.Someintervieweesindicatedthatthesecapacitiesconstituteaweaknessamongresearcherswhoarenotfamiliarwiththerelevantpoliciesandregulations.

Thoughveryfewprivateuniversitieshaveagricultureprograms,privateuniversitiesoftenhavemoreefficientandlesscumbersomefundmanagementandhumanresourceandprocurementsystemsandregulations.Thus,privateuniversitiescanbemorecompetitiveonsomeproposals.Partnershipsbetweenprivateandstateuniversitieswheretheprivateuniversityistheprimaryapplicant,allowingthepartnershiptotakeadvantageofitsloweroverhead,arerare.UPLBandotheruniversitieshavesetupprivatefoundationtobypasscumbersomeuniversityregulationsandprocureandmanageresearchmoreefficiently.Thefoundationisonlyintendedtomanageappliedresearch.

Humanresearchcapacityisperceivedasstrong,eveninuniversitiesoutsidemetroManila.However,studentenrollmentinagriculturaldisciplinesisdeclining,andsomeconcernsaboutthefuturesupplyofresearchareemerging.7Despitestrongcapacity,thebandwidthforresearchisaconstraint.The2014assessmentfoundthatfinancialcompetitionbetweenuniversities’teachingandresearchobjectivesbecauseoftheinabilityofgovernmentresearchgrantstocompensatefacultyforresearchtime(effectivelyde-loading)createsadisincentiveforfacultyresearch.Ourresearchvalidatedthismisalignmentofincentivesintheuniversitiesweinterviewed.Facultystatethattheycannotgiveadequatetimetoresearch(andextension)becauseofheavyteachingloads.Standardteachingloadsvarybetweennineand18credits,andsomeintervieweesperceivedtheteachingloadstobehigherinmoreruralandresource-strappedstateuniversities.Thus,teachingrequirementsfurtherconstrainthesupplyofappliedagriculturalresearch.

Thereissomeflexibilityinallocatingteachingandresearchworkloadsforhigh-performingfacultyatstateschools,butthisflexibilityisnotcommonlyutilizedbecauseresourceconstraintsmeanthatteachingloadsmustbemaintained.Privateuniversitiesaremoreflexiblewithteachingloads.Additionally,researchfacilitiesandequipmentarelackingatmoreruraluniversities.Somesharingofresearchfacilitiesbetweenuniversitiesexistsandisencouragedbyfundingagencies.Intheabsenceofthisfundermandate,universitiesappeartobereluctanttosharefacilitiesbecausetheresearchersmanagingtheequipmentareheldresponsibleifitbreaks.

7DecliningenrollmentinagriculturalprogramsinthePhilippinesisdocumentedextensivelyinBrionesandCarlos(2013),sowedonotfocusonthisissue,despiteitsimportanceforgeneratinginnovations.

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Normsaroundresearchcollaborationandcompetitionweredescribedwithmixedopinions.Manyintervieweesnoteddifficultyinencouragingcollaborationamongresearchers,particularlyacrossdisciplines.Somefacultybelievetheywilladvancemorequicklyiftheykeeptothemselves,whereasotherssimplylackthetime,incentives,orpersonalconnectionsnecessarytojoinprojects.Youngerfacultytendtobemorelikelytocollaborate,sharedfacilitiescanfostercollaboration,andsomefundingfromtheDOSTiscontingentoncollaboration.

Collaborationacrossmultipleuniversitiesisalsoafactor.Collaborationoutsideofpersonalnetworksisconstrainedbythelimitedinformationonfacultyresearchexpertisethatisavailableonline.TheDOSThasprograms,includingtheregionalconsortiamodel,thataredesignedtoincorporatestateuniversitiesandcolleges(SUCs)intoitsresearchprojectsand,likeUPLB,didnotindicatetheexistenceofanydivideorcompetitionbetweenthem.However,inMindanao,universitiesreportedanorth-southculturaldivideandalackoftrustthatpreventscollaborationbeyondthatmandatedbyPCAARRD.Alackofcollaborationwasalsonotedbetweenthevariousgovernmentagenciesinvolvedinagriculturalresearchandtechnologytransferandbetweenuniversitiesandthegovernment.“Turfing”considerationsweredescribedasabarriertocollaboration.

PRIVATESECTORR&D

LargemultinationalcompaniesinvolvedinagriculturalproductiontendtosourceR&DfromtheirinternationalheadquartersandthentestitunderPhilippineagronomicconditions.Somelargebuyersthatinvestintheirproducers(orplantationsforothercrops)havetheirownresearchanddemonstrationfarmstodevelopagronomicbestpracticesfortheirfarmers.Weencounteredlimitedprivatesector-leddomesticR&Doninputs,withmostconventionalinputsbeingimportedtoorassembledinthePhilippinesfromimportedcomponents.Foragro-inputs,itisbelievedthatthePhilippineswillneverreachtheeconomiesofscalenecessarytocompetewithimportsonprice.Asmentionedintheprevioussection,theprivatesectorrarelyengagesuniversitiesinR&Defforts,exceptforusingexportsforthefieldtrialsrequiredforproductregistration.

ChemicalfertilizerandpesticidemanufacturersareoftenpartofmultinationalcorporationsordesignatedregistrantsoftheirproductsinthePhilippines.Formultinationals,R&Disconductedinternallybutnotlocally.Forexample,onelargechemicalcompanyexplainedthatnewmolecules(forpesticides)aredevelopedatglobalR&DheadquartersandsubsequentlycascadedtothePhilippinesforfieldtrialsinlocalenvironments.ThisiscommonpracticeamongsimilarcompaniesbecauseitismoreefficienttoconductR&Datcentralizedfacilitiesin

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countrieswithmoreadvancedR&Dcapacities.Thecompanythatmadethisobservationdoes,however,haveateaminthePhilippinestoidentifylocalmarketdemandfornewtechnologiesandcommunicatethedemandtoitsheadquarters.

Seedlingnurseriesaretheprimarysourceofnewcoffee,cacao,andmangotrees.Theprimaryinnovationofinteresttotheseactorsislikelynewvarietiesornewstrainsofpopularvarieties.However,mostnurseriesarenotactiveinR&D.Indeed,manynurseriesarebasedinothercountries,anditcanbedifficulttosourceplantingmaterialssuitableforspecificPhilippinelocalities.Forexample,oneMindanaocacaoseedlingproviderinterviewedconductsitsownR&Donbothcacaovarietalbreedingandcost-effectivefertilizermixing.

Smallandmediumfoodprocessorsandmanufacturersdevelopnewproductslargelybasedontastethroughtrialanderrorandinternetresearch.Inthecaseofchocolate,somehavegoneabroadtoEuropeantrainingsorhiredforeignconsultantstolearnhowtomakequalitychocolate.Mostinnovationisaimedatreachinginternationalqualitylevelsforchocolateandcoffee.Largecompanieshaveproductdesignteamsanddevelopnewproductsbasedonmarketresearchandfoodlabexperiments.OnemajorfoodcompanyconsidersitsownproductdesignteamandfacilitiescomplementedbyinternationalconsultantstobesuperiortoPhilippineuniversities’andresearchers’capacities.Severalsmallandmediumenterprises(SMEs)awareoftheservicesofferedbytheDAandDOSTleveragegovernmentR&Dsupport.However,thisprimarilyoccursonthepost-harvestandmanufacturingsides;wedidnotencounteranexampleofinputcompaniesleveraginggovernmentresearch.

STARTUPSANDENTREPRENEURS

Independententrepreneursmayalsogenerateandtestnewtechnologysolutionsforagriculturewiththeintentionoftransitioningthemintostartupcompanies.However,thisisnotcurrentlyasignificantsourceofagriculturalinnovationinthePhilippines.Onestartupacceleratornotedthatonlyapproximatelyfourpercentoftheapplicationstheyreceiveareforstartupsintheagri-foodsector.Theyfurthernotedthatagriculturestartupstendedtobestudentrun.Onepossibleexplanationforthelackofagri-foodstartupsisthefocusoninformationtechnology,computerprogrammingandengineering;studentsinthesedisciplinesarenotexposedtothechallengesinthefoodandagriculturesectors,exceptviafamilyorpersonalconnections.Oneintervieweesuggestedan“agri-hackathon,”whichcouldexposeprogrammersanddeveloperstoindustrychallengesandencouragecollaborationandnewprojectsinthisspace.TheInternationalRiceResearchInstitutesponsoredahackathon

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specificallyforricein2013,whichgeneratedseveralpromisinginnovations.However,whetheranyoftheseinnovationshavebeenscaledorcommercializedremainsunclear.

GOVERNMENTRESEARCH

Someinnovationsaregeneratedandtestedbygovernmentagencies.Exceptforhigherpriorityriceandcoconuts,governmentcropresearchishandledbytheDA’sBPI.8Forexample,BPI’sNationalMangoResearchandDevelopmentCouncil(NMRDC)onGuimarasconductsmangoresearch.Ingeneral,BPI’sroleinresearchhasdecreasedasitsregulatoryresponsibilityhasexpanded.BPIprovidesamodest2.5millionPhP(US$48K)annuallyforresearchandcompeteswithuniversitiesforDA-BARandPCAARRDfunding.

OthergovernmentresearchagenciesincludetheITDI,anR&DinstitutethatispartofDOST,andPhilMech,whichisfundedthroughtheDA.ITDIconductsresearchonfoodprocessingandmanufacturingprimarilyinalignmentwithDOSTindustryroadmappriorities.Approximately20‒30percentofITDIresearchiscontracteddirectlybySMEsthatdonothavein-houseR&Dcapabilities.ITDIhasthehighestqualityequipmentforfoodprocessingresearch,andthus,sometimes,universitiesrentitsfacilitiesforspecificprojects.Additionally,throughtheFoodInnovationCentersproject,ITDIishelpingestablishregionalfacilitiesforfoodprocessingresearchbasedatSUCs.OneintervieweeindicatedthattheprivatesectorismorelikelytoengageITDIforresearchthanuniversitiesbecauseuniversitieslackthenecessaryequipment.

PhilMechdevelopsnewpost-harvesttechnologiesforDAprioritycommodities.TheintendedbeneficiariesofPhilMechR&Daresmallholderfarmersandsmall-scaleprocessorsandmanufacturerswhocannotaffordtoinvestintheirownR&D.PrivatecompaniescansubmitrequeststotheDAbutdonotcontractspecificassignmentswithITDI.IfprivaterequestsalignwithDAprioritiesandfundingisavailable,PhilMechwillrespond.PhilMechtechnologiesaredevelopedwiththegoalofbecominga“publicgood”andarenotlicensedtoindividualcompanies.

3. TRANSITIONPATHWAYS

DifferentpathwaysexistthroughwhichaninnovationcanbetransitionedoutoftheR&Dstageandintouse.Thisprocessisfrequentlyreferredtoastechnologytransferortechnologytransition.Thesepathwaysaredescribedbelowusingtwocategories:socialpathways,

8ThePhilippineCoconutAuthorityandPhilRiceconductresearch.

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whichareoftensponsoredbythepublicsector,andtraditionalcommercialpathways.BecauseoftheimportanceandsmallholdernatureofagricultureinthePhilippines,socialpathwaysaremorecriticalthantheyareforothersectors.

Noclearcriteriaordecisionpointexistsforwhetheragiventechnologyshouldfollowacommercialorsocialpathway.Infact,thislackwascitedasanissuethatconstrainsthecommercializationoftechnologies.Thepathwayfollowedoftendependsonthesourceoffunding;typically,DA-fundedprojectsarepublicgoods.However,ambiguityand,often,discordarisesbetweenthepro-commercializationmentalityoftheresearchfunderandtheethosofagriculturaluniversitiesthattechnologiesaredevelopedtohelpfarmersand,therefore,shouldnotbeexploitedtoearnaprofit.Additionally,sometechnologiessitsquarelyinthegrayareabetweensocialandcommercial.Thesetechnologies,suchasthefertilizerssoldbyagriculturaluniversities,areownedbytheuniversity,manufacturedatlimitedscales,andsoldatbelow-marketpricestowalk-incustomers.Becausenoonestandstoearnanythingfromtheirsale,limitedpromotionoccurs.

SOCIALPATHWAYS

Inthissection,werefertonewtechnologies(e.g.,seeds,fertilizers,andmaterials)aswellasresearchrelatingtoagriculturalpractices(e.g.,integratedpestmanagementoroptimalvarietiesforagivenregion)generatedbyuniversityresearcherswithpublicsupport.Bothareconsideredinnovations.Fortheseinnovationstoenterthepublicagriculturalextensionsystem(discussedinsectionD),universitiesandfundingagenciesmust“transfer”them.Thistransferoccursdifferentlydependingontheagencyfundingtheresearchandthenatureoftheinnovation.Thetransferofphysicaltechnologies,suchasfertilizers,requiresmanufacturinganddistribution,whereasresearch-informedpracticescanbepromotedthroughinformationsharingandtraining.

ForDA-BARresearchperformedbyuniversitiesandgovernmentbodies,DA-BARpassestechnologiesontotheATIafterthegrantee’sresearchanddemonstrationhavebeenapproved.DA-BARleadsthisprocess;ATIdoesnotseekoutinnovationstodisseminateorhaveaformalprocedureforsolicitingthemfromuniversitiesorothersources.Formally,PCAARRD-fundedresearchshouldbeapprovedbyPCAARRD’scentralTechnologyTransferandPromotionDivision(TTPD)beforebeingdisseminated.However,theprocessforidentifyingmatureresearchthatisreadyfordisseminationisadhoc.SeveralannualeventsareheldatwhichPCAARRD-fundedresearchersareinvitedtosharetheirresearchfindings.TTPDhasidentifiedthisasachallengeandiscurrentlymore

FindingThereisnoclearsystemfor

identifyingmatureresearchreadyfor

disseminationortransfer.

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INNOVATIONBRIEF

MechanicalMangoHarvesterwithRiserTeam:Dr.RogerMontepio,UniversityofSoutheasternPhilippines

IdentificationofNeedTraditionalharvestingmethodcanbreakmangostemsandcausesbrownstainsonthefruits’skin,makingthemimpossibletoexportandthereforesignificantlydecreasingtheirmarketvalue.

GenerateandTestInnovationFunding:

• Two-yearPhilippineCouncilofAgriculture,Aquatic,andNaturalResourcesResearchandDevelopment(PCAARRD)granttodeveloppost-harvestmangotechnologies

• FundingwasdelayedbyadministrativeissuesResearch:

• Developedamodificationofthetraditionalstick-and-basketmangopicker• DesignwasbasedonanAustralianmodelwithknifebladesonthebaskettocutthemango

stem• Researchteammadeadditionalimprovements,includingaddingatriggermechanismthatcuts

stemswithoutpullingTesting:

• Newharvesterreducedstainingbynearly80%,butincreasedharvestingtime

TransitionoutofResearch:“Social”/UniversityPathwayFunding:PCAARRDhasapproveddissemination,butapprovalwasnotgrantedintimefortheteamtoapplyforcommercializationfunding.Startupsupportservices:TheteamofagriculturalengineershaslittleexperienceinmarketplanningandassessingcommercialviabilityandwillrelyontheDepartmentofTradeandIndustryforsupport.IntellectualProperty:Thepatentapplicationforthepickeriscurrentlypending.

IntroduceInnovationtoUsers• Plannedcommercializationanddistributionthroughtheuniversityfarmstore• Willselltofarmersandlocalgovernmentunitsfordistribution• Feedbackonthepickerfromlocalmangoindustrystakeholdersispositive,butpickerisviewed

as“stuck”becauseindustryhasbeenawareofitforseveralyearsbutitisnotyetwidelyavailable

• Severalprototypeshavebeensoldtofarmerswhowereinvolvinginthetesting

CHALLENGESANDLESSONSLEARNED

ü Difficulttofindafabricatorcapableofmakingbladesthatmaintainasharpedge.ü Considerabledelaysduetowaitingforfundingandfacultyavailabilityforresearch.ü Theresearchteamdoesnotyethaveaconcretebackupplantofundcommercializationifitisnotgranted

PCAARRDfollow-upfunding.OnepossibilitymaybefundingfromtheUniversity’sresearchandextensiondivision.Anotherisaformerstudentwhoisnowafabricatorandhasexpressedsomeinterest.Theteamisinterestedinidentifyingpotentialinvestors,butdoesnotknowhow.

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proactiveabouttrackingcompletedresearchandidentifyingtechnologiesfortransfer.

NopermanentformalmechanismexiststhroughwhichuniversityresearcherscaninformtheDAorPCAARRDofmatureresearchornewtechnologiesthatarereadytobesharedwithusers.Instead,thisprocessdependsontheresearcher’sconnectionsandentrepreneurialism.OneresearcherreportedthathesubmitsaletterdescribinghistechnologysignedbyhisdepartmentheadtotheappropriatepersonintheDA.SomeuniversitieshaveoraredevelopingKnowledgeandTechnologyTransferOffices(KTTOs)thatcansupportthistransitionbothtogovernmentagenciesandexternally.

BothPCAARRDandDA-BARrequirethattechnologiesadvancebeyondthedevelopmentphaseandbepilottestedbeforetheyareconsideredeligibleforthedisseminationortechnologytransfersupporttheyoffer.However,severalintervieweesnoteddifficultyinaccessingfundingforpilot-stagetesting.Additionally,someindicatedthatresearchersdevelopingtechnologiesdonotwanttopilottestortohanditofffortechnologytransfersupport,insteadpreferringtocontinueiteratingonthedevelopmentofthetechnologyitself.

Insomecases,thetransitionstartsviaasocialpathwayandbecomescommercialafteramarketisgenerated.Forexample,thebiofertilizerdevelopedbyUPLBforsmallholderswillbemanufacturedbytheuniversity,andthegovernmentwillpurchaseanddistributeittofarmers.Doingsocouldhelptopopularizeatechnologyanddemonstrateitsmarketability,andthus,downtheline,aprivateactormaylicensethetechnologyandstartproducingitforsale.

OthersocialpathwayscanincludeNGOactors,foundations,andinternationaldonorsseekingtosupportsmallholderaccesstotechnology.Basedonourinterviews,noneoftheseactorsaresignificantsourcesoftechnologytransitioninthePhilippines.

COMMERCIALPATHWAYS

Commercialpathwaysarechannelsthroughwhichinnovators(academe,entrepreneurs,privatecompanies,orthegovernment)transitionnewlydevelopedtechnologiesfromtheR&Dstagesothattheymaybesoldtousers.Whereassocialpathwaysincludeknowledgetransfer,commercialpathwaysaregenerallyspecifictotechnologiesthatcanbesoldratherthanresearchonagriculturalpractices.Commercialpathwaysincludetechnologylicensing,spinoffcompanies,andstartups.9Foraprivate

9Forthepurposesofthisreport,weconsiderastartuptobeayoungbusinessbasedonanewbusinessmodelortechnologicalinnovation.Agriculturalmicroenterprises(e.g.,inputdealersandtraders)thatusetraditionalbusinessmodelsandexistingtechnologies,howeveryoungorentrepreneurial,arenotconsideredstartups.

FindingSomeresearchisstalledatthetestingphase,duetounavailabilityofsecond-

phasefunding.

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companyconductingin-houseR&Dfornewproductdevelopment,noseparatepathwayisneeded,althoughsomesteps,suchaspatentsornewproductregistration,areoftenrequired.

TechnologiesdevelopedviauniversityresearchcanbecommercializediftheuniversityacquiresIPrightstothetechnologyandeitherlicensesittoanoutsidecompanyorestablishesaspinoffcompanytowhichtheIPistransferred.Inourinterviews,weencounteredveryfewuniversity-developedagriculturalinnovationsthathadbeensuccessfullycommercialized.However,anotableshifthasoccurredinuniversities’andfunders’desirestocommercializetechnologies:Manyintervieweesdescribedneworconception-stageprogramsandpoliciestosupportcommercialization.Theseinitiativesareallbasedonthecommonunderstandingthatuniversitieslackthecapacityforcommercialization.

SomeintervieweesidentifiedaneedfortrainingscientistsinentrepreneurshipandIPprocesses;othersthoughtthatbecausebeinganentrepreneurisoutsidethetraditionalskillsetandjobdescriptionforresearchers,universitiesshouldhireadditionalmarketingstafforestablishcommercializationcenterstomanagethisprocess.Oneuniversitybiologisttoldus,“Theuniversitywon’tallowmetomakemyappavailableordemothetechnologyuntilIgetapatent.ButIdon’tunderstandthepatentpaperwork,orwhichpartsoftheresearcharepatentable.Theprocesshasbeenverytimeconsuming.”MomentumexistswithinuniversitiestoprovidesupporttoresearchersaroundIPandpatents.InadditiontoimplementingIPpolicies,universitiesaretrainingstaffandfacultyonpatentsearchingandconductingseminarstointroducefacultytoIPbecause“itisnotnaturallypartoftheirmindset.”ManyuniversitiesnowhostabranchoftheInnovationandTechnologySupportOffice,undertheauspicesoftheIntellectualPropertyOfficeofthePhilippines(IPOPHL).

AnotherexampleofemergingsupportforcommercializationisUPLB’snewlydeveloped“OneBiotech”concept.ThisisplannedtobeacompanywithinUPLBthatisresponsibleforcommercializingalltechnologiesdevelopedthroughUPbiotech;thus,thefacultywouldnotbetaskedwiththemarketingside(althoughtheywillretainequity).Implementingthisconceptwouldalsoshortenthelicensingprocess.Currently,36technologiesthathavebeendeemedrelevantfortheagriculturesectorandmarketreadyare“linedup.”OneBiotech,likeotherinitiativestosupportcommercialization,remainsintheplanningphase.Indeed,althoughthesituationischanging,anoverrelianceonfacultyentrepreneurshipfortechnologycommercializationstillseemstopersist.

Mostintervieweesmentionedthatitremainsdifficulttosetupaspinofffromauniversity.Aresearchermustgoallthewayupthroughthepresidentandchancellortoobtainpermissionforcommercialization,

FindingUniversitiesandfundersdemonstratesubstantial

momentumandcommitmenttowardimprovingtechnologycommercialization.

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whichisadisincentiveforinnovation.Itissimilarlydifficulttolicenseatechnologytoprivateagribusiness;severalintervieweesnotedthatagribusinessesareoftendiscouragedbytheslowspeedandbureaucracyofuniversities.Partofthedelayorhesitancecouldberelatedtoalackofunderstandingofthevariousoptionsforcommercialization.OneDArepresentativetoldus,“Privatecompanieswanttobuyinnovationsfromtheuniversity—theproblemistheprocessitself.Universitiesareweakatidentifyingbusinessopportunities.”Industrymistrustisalsoafactoratthisstage.Oneintervieweenotedanexampleofalargeinputcompanyinterestedinpurchasingtherightstoauniversity-developedfertilizer;however,theinventordidnottrustthecompany,andthus,thesaledidnotgothrough.Weheardsubstantialfrustrationfrombusinesseswhohadtriedtolicenseagriculturaltechnologiesfromauniversitybutfailed:“UPLBdoesrecordbreakingstuff.Buttheirmandateistogivetechnologiesawayforfree—theymakeitveryhardfortheprivatesectortogetinvolved.It’sfastertosourcetechnologiesfromabroadthantotrytogetthemfromUPLB.”

Further,wenotedverylittleinformationflowfromuniversitiestoindustry—thatis,whenresearcherspublishresearchordevelopanewtechnology,itisveryunlikelythatindustrywillknowaboutit.Universitiesrarelyhavecommunicationsormediastrategiesdesignedtoinformagribusinessesaboutnewdevelopments.Additionally,conferencesaretypicallysiloed:Academicconferencesandindustryeventsexist,buttheyrarelyoverlap.Asoneindustryassociationputit,“We’dliketostayabreastofnewresearch,butitseemslikescientistsjustproduceresearchandshelveit.”One-offexamplesofbusinessesstayingconnectedtouniversitiesusuallyoriginatedthroughalumniorweretheresultofindividualswhowereparticularlydedicatedtosupportingtheuniversitiesorsourcingproductslocally.Thisisanotherphaseinwhichdirectlinkagesbetweenbusinessanduniversitieswouldstrengthentheecosystem.Newspapers,amajorsourceofagriculturaltechnologyinformation,couldbeanappropriatechannelforthis.

OurresearchalsoexploredhowtheprivatesectorcantransitionnewtechnologiesfromtheR&Dphasetomarket.Onefrequentlycitedfrustrationwastheprocessofregisteringand/orcertifyingnewagriculturalinputs,particularlypesticides.Approximately5yearsarerequiredtoregisteranewproduct.Thisisprimarilybecausenewpesticidesmustundergofieldtrialslocallywithanaccreditedexternalevaluator,andcompaniesmustworkthroughtheFertilizerandPesticideAuthority(FPA).Thetrialitselfisnotthebottleneck;rather,theFPAlacksmanpower,successionplans,automatedsystems,andincentives.OneintervieweealsonotedthattheFPAmusthiresubjectmatterexperts,usuallyretiredscientists,toreviewpermitapplications,buttheseexpertsarepoorlycompensatedandhavenoincentivetomovequickly.For

FindingTheprivatesectorisrarely

awareofuniversityresearchadvancements.

FindingRegisteringnewinputs,suchasfertilizersandpesticides,isslowinthePhilippinesandcandeter

innovation.

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INNOVATIONBRIEF

GreenEnviroManagementSystem(GEMS)Team:Dr.EvelynTaboada,DeanoftheSchoolofEngineeringandProfessorofChemicalEngineeringattheUniversityofSanCarlos(USC)

IdentificationofNeedUniversityprioritizedresearchthatsolvedlocalproblems.InCebu,amajorissueisthelargevolumeofdiscardedmangoseedsandskinsthatcontributestourbanwastemanagementproblems.

GenerateandTestInnovationFunding:

• Dr.TaboadareceivedseedfundingfromUSCtobeginresearchonhigh-valueproductsthatcanbegeneratedfrommangowaste.

Facilities:• USCalsoinvestedinagaschromatographymassspectrometryinstrumenttoidentifythedifferent

substanceswithinmangowaste,recognizingthattheexpensiveequipmentcouldbeusedformultipleprojectsinthefuture.

Research:• Mangoflour,whichisglutenfreeandmorenutritiousthanwheatflour,wasidentifiedasan

opportunityforvalueaddition.Becausemangoflourhasatarttaste,Dr.Taboada’steamhashavecreatedmixtureswithotherflours,includingcassavaandcoconut.Theyalsoproducedmangotea,briquettes,andanimalfeed.

TransitionOutofResearch:CommercialPathwayIntellectualProperty:

• FiledpatentapplicationsthroughUSC’sinformationservicetechnologyoffice• Incorporatedthebusiness;USCretainedashareofthecompany

Investment:• Identifiedpotentialinvestorsthroughpersonal/universitynetwork,whichexistedduetofrequent

collaborationswithindustry• Choseoneofseveralinterestedinvestorstofinancetheconstructionofafactory

IntroduceInnovationtoUsersIdentifiedprimarybuyer(CityofJohannesburg),whichwantstobuyasmuchmangoflourasGEMScanproduce.Currentlylookingforadditionalbuyerstoexpandconsumerbase.

InnovationUsedtoUpgradeOperationsTheCityofJohannesburgusesthemangoflouraspartofabakingskillsdevelopmentprogram.GEMScontinuestoinnovate,testingdifferentmangoflourmixesandrecipes.

CHALLENGESANDLESSONSLEARNED

Dr.Taboadaisunusualamongscientists;sheholdsamaster’sdegreeinintellectualpropertylawandisinnatelyentrepreneurial,ararecombinationofcapacities.TheearlysuccessofGEMSisnotlikelytobereplicatedexactlywithouther.Instead,supportservicesshouldbeavailablesoscientistsarenotrequiredtobeexpertsinintellectualpropertylaw,entrepreneurialism,andfactorydesignfortheirinnovationstobecommercialized.

USCiswell-connectedtoindustry,whicheasedtheprocessoffindinginvestors.Thisisalsorare.Dr.Taboadaattributesthistotheuniversity’sstreamlinedbureaucracy,whichmakesprivate-sectorengagementmuchlesscumbersomeandtimeconsumingthanforpublicuniversities.Additionally,becauseofitsreligiousaffiliation,theuniversitytakesitsextensionandcommunityengagementmandateveryseriouslyandthereforehasalotofexperienceengagingtheprivatesector.

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companiesintroducinggenericordifferentbrandsofapprovedactiveingredientsratherthannewmolecules,theregistrationprocesshasfewerbottlenecksbutisstillexpensiveandcandeternewmarketentrantsanddiscourageinnovation.Theprocessforfertilizerapprovalsisalsofaster.Oneinputdealernotedthattheprocesscanbeexpeditedviabackchanneling.Additionally,intervieweesfromtheprivatesectormentionedthatthePhilippineshasnotupdateditsagrochemicallaws,whichpreventssomenew,organicproductsfrombeingusedinthecountry.Thelegislationcontainsoutdatedlanguageand“thereisnomomentumintheFPA”tomakeanychanges.10Oneagrochemicalcompanynotedthattheannualprocessandcostsofcertifyingaproductorganicareprohibitiveandcannotberecoupedbychargingapremium.Indeed,itismuchcheapertoregisterasyntheticproduct.

NewfoodproductdevelopmentisconstrainedbyFoodandDrugAdministration(FDA)requirementsforregisteringnewproducts,whichare,likethoseoftheFPA,viewedasanachronisticandslow.Intervieweesindicatedthatregistrationrequirementsareallinpapercopyratherthanonlineandthatnewproductregistrationreportedlytakesupwardsof6months,muchlongerthanthe2weeksrequiredinThailand.However,theFDAhasrecentlyupgradedtoelectronicregistrationforallnewproductsclassifiedaslowriskandhasplanstoexpandthisfeaturetoallproductsbytheendoftheyear.TheFDAestimatesthate-registrationhasreducedthetotaltimerequiredfrom114daysto53days.

Independententrepreneursandinnovatorswhohavedevelopednewtechnologiesandseektocommercializethemvialaunchingastartupcompanyareunlikelytohavetransitionsupportprovidedbyauniversityorlargecompany.SeveralincubatorandacceleratorprogramssupporttheFilipinostartupcommunity,althoughweencounterednonefocusedspecificallyonfoodandagriculture.Acrossallsectors,thereisaneedforstartupservices,includingbasicaccountingandlegalsupport,butwithoutaccesstoaformalincubationoraccelerationprogram,startupshaveadifficulttimefindingtheseservices.UniversityresearcherswithDOSTfundingmayreceivesupportliketheservicesofferedbyincubators:TheDOSTofferstrainingonpitchingandbusinessplandevelopment,holdspitchingdayswithangelsandventurecapitalists,andsupportsproductregistration.Insomecases,theDOSTsupportstheestablishmentofincubatorswithinuniversities;forexample,theUniversityofSanCarlosisapplyingtobecomeanincubatorforengineeringinfood,energy,andwaste,andUPLBabiotechnologyincubator.

10WeconductedoneinterviewwithanadministrativeofficerattheFPAwhodidnotcommentonthesefindings.Higher-levelofficialsattheFPAexplicitlydeclinedtoparticipateinourstudy.

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Onecriticalfactorforthesuccessofstartups(and,inmostcases,thatofuniversityspinoffs)istheavailabilityofinvestors,includingangelsandventurecapitalists,whichisgenerallyperceivedtobeadequateinthePhilippines.However,intervieweesrepeatedlynotedthatinvestors(andotherstartupservices)aremoreaccessibleinMetroManilaandthatforagriculturestartups,whicharemorelikelytocomefromoutsideofManila,thiscanbeachallenge,asdescribedintheinnovationbriefbelow.

Further,Filipinoinvestorstendtobelesstech-savvyand“startupminded”thantheangelinvestorsintheglobaltechnologycommunity.Theyaremoretraditionalinvestorsandarelessaccustomedtothehigh-risknatureandideaofinvestinginteams.Fortech,thereisaneedtoeducateinvestorsandweanthemfromthistraditionalmindset;however,foragricultureandfood,thisrepresentsanopportunity.Evenhigh-techagriculturalinnovations,suchasappsandsensors,canbeunderstoodbyinvestorsbecausetheysupporttheproductionoffood,whichisafamiliarandrelativelystablemarket.Onerespondentthoughtthatagri-foodstartupswouldbemoretangibleand,therefore,attractivetotheFilipinoinvestorsthansoftwareormoredigitizedorsocialnetwork-basedideas.

However,startupsmaystillencounterdifficultiesinfindingtherightinvestors.SeveralinvestornetworksexistinmetroManilathatentrepreneurscantapintoiftheyareawareofthem.OneintervieweenotedthatinCebu,nogoodinvestornetworkisinplace,soalthoughgrowinginterestinfoodisemergingamonginvestors,itremainsdifficultforinnovatorstofindwell-alignedinvestorsandviceversawithoutapersonalconnection.Incubationandaccelerationservices,whichtypicallyhelpstartupsconnectwithinvestorsatearlystages,mostlysupportinformationtechnologystartups.

Oneoptionforfinancingagribusinessesisimpactinvestors.ThePhilippineslagsothercountries,suchasIndia,intheimpactinvestingspace,butsomeareavailableinManila.Impactinvestorstypicallyfundestablishedbusinessesratherthanidea-stagestartups.Additionally,itisdifficultforthemtoconnectwithagribusinesseslocatedintheprovinces,andviceversa.

FindingAgriculturalstartupsoutsideofManilahavedifficultyaccessinginvestorsandstartup

services.

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INNOVATIONBRIEF

CloudFarmRemoteSensorsDavaoCity-basedstartuplaunchedbyrecentengineeringgraduatesoftheUniversityofSoutheasternPhilippines(USEP)

IdentificationofNeed• Studentswereinterestedbecauseoffamilyconnectionstofarming.• Throughconsultationwithcommercial-scalefarmers,theyidentifiedaneedanddecidedto

designaremoteheatstressanalyzer.Similartechnologiesareavailableoverseas,butdon’tfunctionwellinremoteareasinthePhilippines.

GenerateandTestInnovationFunding:

• Ideaspace’sannualstartupacceleratorcompetitionselectedCloudFarmasoneof10startupstobeawardedsupportintheformofofficespace,legaladvice,ascholarshiptotheAsianInstituteofManagement,andapproximatelyUS$60,000instartupcapital.

Research:• CloudFarmexpandedtheremotesensingunitstomonitorformoistureinthesoilandair,

light,pHbalance,andnutrientcontent,allowingfarmerstorespondquicklytochangingagronomicconditionsandtracktrendsovertime.Thesolar-poweredsensoruploadsdatatoanandroid-basedapplication.Itcoversarangeofonetotwohectares,buttheteamisworkingtoexpanditusinglow-costsatellitesensors.

Testing:• CloudFarmhasmanufacturedandtestedprototypesusingalocalmanufacturerandhas

beensatisfiedwiththequality.TheyhavetestedthetechnologywiththeBureauofPlantIndustry(BPI)andhavedonefarmtrialsonUSEP’sMabinicampus.ThetestsatBPIshowedthattheremotesensingunitincreasesyieldsinagreenhouseby6%,butCloudFarmexpectsthistobesignificantlyhigheronfarmswhereagronomicparametersaremorevariable.Additionaltestsareplanned.

TransitionOutofResearch:CommercialPathway• CloudFarmhasregisteredasabusinessandhasapatentpendingonthesensortechnology.

BecauseIdeaspaceprovidedapatentattorney,thepatentapplicationprocesshasbeenrelativelysimpleforCloudFarm.

• CurrentlyCloudFarmlacksthecapitalnecessarytoreachcommercialscale.Itsmostlikelysourceofscale-upfundingistheDepartmentofScienceandTechnology openwindowforfundingforcommercialization.Ithasalsohadsomeinterestfromoneangelinvestor,oneinputcompany,andtheBureauofAgriculturalStatistics,butnoinvestmenthasmaterialized.TheyarenotawareofangelinvestorsinDavao.

CHALLENGESANDLESSONSLEARNED

ü Startupincubatorandacceleratorservicesprovidevaluablesupportforinnovation,butlackofnext-phasecapitalremainsachallenge,particularlyoutsideManila.

ü Marketresearchisessentialearlyintheinnovationprocess.CloudFarmisuncertainaboutthedomesticmarketsizeforsuchahigh-techagricultureproduct.Evenrelativelywealthierfarmersarenoteasilyconvincedofthesensor’sbenefitsrelativetocosts.Becauseofthis,CloudFarmisexploringdevelopingalowercostalternative.

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4. INNOVATIONINTRODUCEDTOUSERS

OnceaninnovationhasbeensuccessfullytransitionedfromtheR&Dphaseandisreadyforuse,itmustbeintroducedtotheusersforwhomitwasdeveloped.Thisintroductioncanoccurviaprivatesectorpromotion,publicationandinformationsharing,oragriculturalextension.ThisstageisparticularlycomplexintheagriculturesectorbecauseoftheheavyinvolvementofpublicagriculturalextensionservicesandthewidedispersionofFilipinofarmers.

Theagriculturalextensionsystemistheprocessthroughwhichtrainedagriculturalextensionagentsprovidetraininganddemonstrationtofarmersonagriculturaltechnologies,practices,andagriculturalenterprisemanagement.Thespecificservicesdeliveredbyanextensionagentvarywidelybyregionandagentandmayalsoincludecommercializationordistributionoftechnologiesatalocallevel.OurobjectiveisnottothoroughlyassessthePhilippines’agriculturalextensionsystem.Rather,inthissection,weprovideabriefintroductiontohowagriculturalextensionfitswithinthegreaterinnovationecosystem,highlightinginsightselicitedfromourinterviews.

InthePhilippines,acomplexwebofactorsandrelationshipsexistsinagriculturalextension(Figure5).

Figure 5. Technology Transfer Actors in the Agricultural Extension System

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Philippinedevolutionin1991assignedresponsibilityforagriculturalextensiontoLocalGovernmentUnits(LGUs).LGUsimplementextensionatprovincialandmunicipallevelsandaresupportedatnationalandregionallevelsbytheDAbutareprimarilyfundedwithlocaltaxes.WithintheDA,theATIisresponsiblefordeliveringtrainingsoftrainers(TOTs)toLGUextensionstaff,whothendelivertrainingtofarmers;however,theLGUsarenotactuallyaccountabletotheATI.ATIalsoprovidessomeprogramfundingtoLGUs,whichcoverslogisticsandothernon-salarycosts.Otheragencies,includingtheDTIandDepartmentofAgrarianReform,alsoconductsomeextensionactivities.Thismultiplicityofplayersinvolvedinextensionwascitedascausingconfusionwhentransitioningtechnologiesintotheextensionsystem.

LGUagriculturalextensionservicesaregenerallyrecognizedasweakbecauseofdevolution,asdocumentedinseveralpublications(Ocenar,Brillantes,Cuthbertson,&Tumanut,2004;Saz,2007)andreflectedinourinterviews.Onechallengeisthelackofoperationalandtravelfunding,whichpreventsextensionagentsfromleavingtheoffice.Moreimportantly,devolutionhasisolatedagriculturalextensionoffices,weakeningtheirconnectionstonationalresearchsystems(Saliot,2006.)

SomeprominentmodalitiesforcascadingagriculturalresearchandtechnologiestofarmersareoutlinedinTable3.Intheory,thesemodalitiesalsoservetoidentifyfarmer-developedinnovationsandneedsforresearch,althoughweencounteredlittleevidencethatthisoccurs.

Table 3. Extension Modalities in the Philippines

Farmer Scientist Training Program/Science & Technology-based Farms

• Farmer scientists nominated by LGUs and local universities receive inputs and training on new innovations.

• Farmer scientists demonstrate new technologies to other farmers but do not distribute or sell them; other farmers must ask the DA or LGUs how to obtain the technology, which may or may not be available.

• This program was developed by PCAARRD and transferred to the DA. • One interviewee indicated this program is being scaled back, and another stated

that it has evolved into community-based demonstration farms. Farmer Information and Technology Service (FITS) centers

• These centers are in municipal agricultural offices in village centers. • They house information, manuals, and computers for farmer use. • Over 800 exist across the Philippines.

PCAARRD Regional Consortia

• Fourteen regional consortia exist and include SUCs, LGU, and NGO collaborators.

• They serve as a mechanism to conduct and disseminate research at the regional level.

FindingThecomplexityoftheagriculturalextensionsystemimpedesthetransferofnew

technologiesandresearch.

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ResearchpertainingtopracticesratherthantechnologiesisapprovedbyPCAARRDforpublicsectordisseminationandthendisseminatedattheregionallevelthroughLGUconsortiamembers.Mostrespondentsindicatedthatitisgenerallyuncommonfortheprivatesectortoaccessresearchresultsfromuniversitiesorgovernmentagencies.OnemangogrowernotedthattheNMRDChadconductedanexpensivestudyonmangostrains,buteveniffarmerswereawareoftheresearch,theycannotaccessitwithouttravelingtoGuimaras.

Intheprivatesector,becausestrongincentivestointroducetheirtechnologytousersexist,theprocesstendstobemoresuccessful.Largecompanieshaveexistingdistributionnetworksforsellingseedlings,fertilizers,andpesticides,andthus,whenanewproductisavailable,introducingitviathatnetworkisgenerallyaseamlessprocess.Somecompaniesmayopttoworkthroughthepublicextensionsystemtointroducetheirtechnologiestofarmers.Insomecases,PCAARRDpursuesextensionandcommercializationsimultaneously;introducingtechnologiesthroughextensioncangeneratetractionandbuildamarketforaproduct,makingitscommercializationmoreattractivetoprivatecompanies.

FindingTheprivatesectorrarelyaccessesuniversityorgovernmentresearch.

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5. INNOVATIONUSEDTOUPGRADEOPERATIONS

Thefinalrequirementforaninnovationtohaveimpactisthatitmustbeusedbyfarmersorprivateagribusinessestoupgradeoperations.Simplyintroducingitisnotsufficient.Inthissection,weprovideanoverviewofthemainactorsintheecosystemthatuseinnovations.Notingthattheseactorsfeeddirectlybackintothefirstphase—identifyinganeedforinnovation—wealsodiscussthetypesofinnovationseachactordemands.

Foodcompaniescanalsobeusersofinnovationaroundprocessing,packaging,andwasterelatedtoagriculturalproducts,althoughmostinnovationisconductedin-house.LargemultinationalfoodcompaniesintroducenewproductsinthePhilippinesbasedonlocalmarketresearch.Thesenewproductsaredevelopedthroughin-houseR&D,whichmayhappenabroad.OnelocalcompanynotedtheneedtosourceexpertiseandequipmentfromEuropetoproducehigher-qualitychocolateinthePhilippinesbecausetheequipmentavailablelocallyisinadequate.Inthecoffeesector,similardissatisfactionexistedwithlocalmachinery,whichisprimarilymadeforRobustaonlyandbreakswhenusedonlargerbeans.Oneindustryassociationnotedthatitsmemberswouldbeunlikelytoprioritizespendingmoneyonresearch,althoughtheymaybewillingtoinvestinsuchtechnologiesiftheywereavailableandcouldincreaseyields.

Large-scalefarmsareuncommoninthemango,cacao,andcoffeevaluechains.Contractandmanagedfarmsrunbylargebuyersmayhavetheirownagronomists,andatleastonehasitsownresearchanddemonstrationfarmthatcollaborateswithauniversityondiseaseresearch.Thesefarmsaremoreactiveinthepursuitofinnovationandaregenerallymorelikelytousenewtechnologiesandadoptresearch-basedpractices.

Smallholderfarmersconstitutemostprimaryproducersofcacao,coffee,andmangointhePhilippines.Thesefarmersusuallyhaveminimalcapitaltoinvestinnewtechnologiesandare,therefore,rarelyactiveinthepursuitofinnovation.Indeed,mostusetraditionalpractices.Smallholderadoptionofknownproductivity-enhancingtechnologiesthatarealreadyutilizedbylargerfarmersislow.Forexample,only35and45percentofmangogrowershaveadoptedfertilizerandpruningpractices,respectively,(Buguis,n.d.).Thelowtechnologyadoptionratesofsmallholderfarmersconstituteapriorityissuearoundthedevelopingworldandhavebeenthoroughlyresearched.Lowadoptiondoesnotnecessarilyimplylowdemandforbettertechnologies.Instead,inmostcases,lowadoptioncanbeexplainedbyfarmers’constrainedaccessto

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information,finance,inputoroutputmarkets,labormarketinefficiencies,riskpreferencesandexposure,orlandrights(Jack,2013).

Therefore,asnotedbymanyinterviewees,theextensionofexistingand,insomecases,basictechnologiesismoreimportantforsmallholdersthanthedevelopmentofnew,moreadvancedinnovations.Thus,manyusefulinnovationshavebeendevelopedbuthavefailedtoreachthefinalstep(s)oftheprocessorremaininaccessibletofarmersbecauseofhighcostsorpoordistribution.Inseveralinterviews,Filipinofarmersweredescribedastraditional,riskaverse,oreven“emotional”andresistanttochangeand,therefore,slowtoinnovateoradoptinnovations.

FindingForsmallholderfarmers,accesstoexisting,basictechnologiesismoreimportantthanthe

developmentofnew,moreadvancedinnovations.

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KeyFindingsandRecommendations

Thissectiondiscussessomeofthekeycross-cuttingfindingsoftheagribusinessinnovationecosystemassessment.Overall,thefindingsindicatebothpositivemomentumandstronguniversitycapacityandgovernmentsupportforagriculturalresearchandinnovation.Wereiteratethatthesefindingsrepresentstakeholderopinionsoftheagribusinessinnovationecosystemratherthananauthoritativediagnostic.Thisreportisintendedtoprovokediscussionamonginterestedstakeholdersandprovidetheopportunityforopendialog.Below,weoutlinekeyfindingsandassociatedrecommendationsforfosteringthedevelopmentanddiffusionofagriculturalinnovationsthatcanleadtoinclusivegrowth.

Universitiesandgovernmentresearchfundersdemonstrate

substantialmomentumfortheadoptionofpro-commercializationpractices.

Manyintervieweesnotedprogressorindicatorsofmomentumrelatedtomovingresearchandtechnologies“offtheshelves”andintothehandsofusers.Heightenedawarenessoftheimportanceoftechnologytransferexists,althoughitmaynothavefullypermeatedtheecosystem.AttheDOST,thisawarenessisevidencedbythepassageofnewIPpoliciesin2015,whichincludeatechnologytransferprotocolforuniversitiesreceivingDOSTfunding.Additionally,theDOSTisproactiveinidentifyingtechnologiesreadyforspinoffandworkingwithresearcherstodevelopbusinessplansandidentifyinvestors.AsofMarch2016,noneofthesetechnologieshadsuccessfullyspunoff;however,theeffortisclearlyindicativeofmomentumandinterestincommercializationfromoneoftheprincipalfundersofagriculturalresearch.TheDOSTisalsoworkingwithLANDBANKtofacilitatelowerratesonstartuploansandisactiveinrequiringevidenceofmarketdemandforatechnologybeforereleasingresearchfunds.

Wealsonotedseveraluniversity-ledinitiativesinthepipelineorplanningphasestorampupcommercialization.TheseinitiativesprimarilyoccurredintheformofcapacitybuildingforuniversityfacultystaffinentrepreneurshipandIP,thedevelopmentofIPpolicies,andtheprovisionofcentralizedsupportservicesthroughtheuniversityformarketingandlegalsupport,includingKTTOs.Severaluniversityactorsmentionedthattheyaretryingtoincreaseexposuretoindustry.

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Theseemergentpolicies—or,insomecases,early-stageideas—areinchoate,andtherefore,theresearchteamcouldassesswhethertheyarecontributingpositivelytotheecosystem.However,theynotedastrongawarenessoftheneedforchangeandstepsintherightdirection.

Recommendations:Fundersanduniversitiesshouldseekcomprehensivefeedbackonnewprogramsandpoliciesfromstakeholdersandstrivetocontinuouslyadaptandimprovethem.Privatesectorinputshouldbeincorporatedwhenpossible.Initiativesaimedatimprovingcommercializationshouldnotrelytooheavilyononesolution—forexample,facultyentrepreneurshiporanIPpolicy—butshouldinsteadseeksolutionsfromvariousecosystemcomponents.

Theintrinsicmindsetthatagriculturalinnovationsarepublicgoodscan

ultimatelyhinderusers’abilitiestoaccessthoseinnovations.

Publicinstitutionsinvolvedinthegenerationofagriculturaltechnologiesaretypicallyfoundedwithamissiontopromoteagriculturalproductivityandhelppoorfarmers.Thisisaworthymissionandhasundoubtedlyresultedindepartmentsofagricultureanduniversitiesworldwidecontributingtoagriculturalgrowth.However,thisethosandtheunderlyingdesireforsocialbenefitcanalsoconstraintechnologytransfer.

Weencounteredthistensionateverystagealongthepathway.Somefacultyavoidcommercializingtechnologiesbecausedoingsoconflictswiththeirmission.Mostnotably,instage3—alreadythemostcriticalandcomplicatedstage—whetheratechnologyshouldbesocialorcommercialmustbedetermined,butnoclearcriteriaorevenauthoritytodosoexists.Further,evenifatechnologyisfollowingthecommercialpathway,myriadapprovallevelsarepresentinpublicuniversities,andeachoneisanopportunityforadifferentuniversityofficialtostopandask,“Wait,doesn’tsellingthistoacompanyforprofitconflictwithourmission?”Thiscandelayandcomplicatewhatisalreadyalengthyprocess.

Manytechnologiesareclassifiedassocialandpushedoutviatheextensionsystemoruniversitiesdirectly;thisisoftenthebestchoice.However,becauseofthelackofincentivesintheextensionsystem,thesetechnologiesmaynotbedisseminatedaswidelyascommercializedones.

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Recommendations:

Universitiesandfundingagenciesshouldclarifywhoisresponsibleforclassifyingatechnologyassocialorcommercialandthecriteriaforclassification.Thisshouldbedoneasearlyintheresearchprocessaspossibleandcommunicatedwidely.Universitiesshouldcontinueeffortstoward“sensitizing”facultytowardcommercialization,buildingentrepreneurialism,andcommunicatingthemessagethat,inmanycases,technologiesaremorelikelytoreachfarmersthroughtheprivatesector.

Theextensionsystemsuffersfromseveralchallenges,aspreviouslydiscussed,andthus,incentivesaloneareunlikelytoimproveitsperformance.Inanyextensionreform,however,incentivesshouldbecarefullyconsidered;severalrecentexperimentalstudiesindicatetheirpositiveeffectsonfarmeradoptionoftechnologiesandpractices.Incentivesdonotnecessarilyhavetobemonetary;infact,monitoringandfarmerfeedbackarealsoeffectivemechanisms(Masset&Haddad,2014;Jones&Kondylis,2015).

Weakrelationshipsbetweenacademeandagribusinesshinder

innovation.

Academe-industryrelationshipsthroughoutallfivestagesarevitalinafunctioninginnovationecosystem.Whenuniversitiesandagribusinessesarewellconnected,researchersunderstandindustry’sneedsforinnovationandcanproducemarketabletechnologies,andindustryisawareofuniversityinnovations,drawsonuniversityexpertise,andcanbringtechnologiestomarketwhentheyareready.Mostrespondentsnotedweakrelationshipsbetweenacademeandtheprivatesector–echoingafindingintheoriginalinnovationecosystemstudy.Researchersrelyontheirprimarysourcesoffunding—PCAARRDandDA-BAR—tocommunicatewithindustryandsetresearchpriorities.Althoughthisprocessfunctions,itdetersthedevelopmentofmoredirectrelationships,limitingopportunitiesfortwo-wayexchange.

Ø Limitedinformationonuniversityagriculturalexpertise,research

andinnovationsispublicallyaccessible.

Privateagribusinessesoftencannotidentifyacademicexpertsintechnicalareasthatcouldaddvaluetheirbusiness.Onemanufacturernotedatechnicalissueregardingpreservativeapplicationbutdidnotknowtheindividualswithinauniversitythatshouldbecontactedaboutasolution.Thisislargelybecauseofpooruniversitywebsitesthatfailtodetailtheexpertiseandresearchaccomplishmentsoftheirfaculty,althoughvariationinqualityandthelevelofdetailexistacrossdifferent

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universitiesanddepartments.Evenatthedepartmentlevel,someprogramsdonotprovideinformationontheirspecialtiesandachievements.Further,universitiesoftenhavepoorinternalinformationsharing.

Weencounterednoregularorsystematizedplatformsforuniversity-industryknowledgesharingorengagementaroundagriculture.Selectedindustrystakeholdersareinvolvedinsettingtheresearchagenda,butthisinvolvementdoesnotincludeanydirectcontactorrelationshipbuildingbetweenindustryandacademe.Universitiesalsodonotprioritizemainstreamorindustry-targeteddisseminationofresearch.Facultyrelyonacademicpublicationstopromotetheirwork,whicharenottypicallyreadbyanyoneoutsideofthespecificfield.SomeuniversitiesareintheprocessofdevelopingKTTOs(somewithsupportfromSTRIDE),whichcanbeusedtoaddressthisdisconnect,butwedidnotencounteranythatarealreadydoingsoforagriculture.Similarly,fundingagenciesdonotconsistentlypublicizeresearchtheyhavefundedthatisreadyfortechnologytransferonline.Instead,suchresearchseemstobepublishedonanad-hocbasis.

Ø Academicexpertiseisoftenperceivedasnotrelevanttoprivate

agribusiness,andthereismutualmistrustbetweenindustryand

academe.

STRIDE’s2014assessmentfoundthatwidespreadmutualdistrustbetweenuniversitiesandindustryintroducedfrictionintotheecosystem.Severalintervieweesvalidatedthisfindingintheagriculturesector;someagribusinesses,evensmallcompanieswhomightbenefitfromlocalexpertise,arereluctanttocollaboratewithuniversityexpertsforfearthattheirsecretsmightbesharedwithcompetitors.ConfusionaboutIPownershipalsoexists,withbothsidesbeinghesitanttoembarkonajointresearchprojectbecauseofconcernsaboutwhowillhaveownershipoftheproductorpatent.Privatesectorpartnersareoftenalsodeterredbytheslow,bureaucraticprocesseswithinuniversities.Partlybecauseoftheabovelackofinformationsharing,privateagribusinessmayassumethatacademicexpertiseisnotrelevant.

Ø Universitysystemsforfacultyconsultingarrangementsdonot

facilitateinstitutionalrelationships.

Consultingassignmentscanservetobolsteruniversityresearchers’connectionstoindustryandunderstandingofindustryneedswhilesupplementingtheirsalaries.Mostintervieweesontheuniversitysidewereawareofatleastsomeinstancesoffacultyengaginginconsultingworkforagribusinesses.However,theconsultingassignmentsarenotusuallymadethroughtheuniversity,whichisacceptablesolongasthe

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consultingdoesnotoccuronuniversitytime.Formalizingconsultingassignmentsthroughtheuniversityisviewedasunnecessarilybureaucraticandcumbersomeandis,therefore,avoided.Consulting“sidearrangements”arealsoanissueinLGUextensionoffices.Onerespondentnotedsomeinteresthasdevelopedinbringingconsultingactivitiesintotheuniversityfold.

Failuretokeeptrackofconsultingactivitieswiththeprivatesectorrepresentsalostopportunityforuniversitiestotransformad-hocpersonalrelationshipswithindustryintoinstitutionalrelationshipsthatcouldleadtoconsultingopportunitiesforadditionalfacultyandbuildacultureoftrustandinformationsharing,whichiscurrentlylacking.Insomecases,itmayalsoconstitutealostopportunityforrevenuecapture.Furthermore,institutionalizingconsultingagreementscanprotectuniversitiesfromreputationalrisk,offeringamechanismforoversightandqualitycontrol.

Thesethreefactorscontributetotheoverallweaknessofrelationshipsbetweenindustryandacademe.Thus,academeisdisconnectedfromindustryandfarmerneedsforinnovation,anduniversitiesaredevelopingfewerpractical,relevanttechnologies.PrivateagribusinessesdonottakeadvantageoftheexpertiseavailableinPhilippineuniversities,slowingtheprocessofprivatesectorinnovation.Finally,weakrelationshipsmeanthatuniversitiesarelessconnectedtopotentialinvestorsforagriculturaltechnologies,hinderingtheprocessofcommercializationand,ultimately,thepotentialforgrowthofferedbysuchtechnologies.Thesefactorsservetoreinforcetheweaknessoftheserelationships.

Recommendations:

Universitiesneedstrongerplatformsforengagementwithindustry,whichcouldtaketheformofregularmeetingsornetworkingevents,industrydays,researchshowcases,internshipprograms,oranycreativebutsystematizedwaytofosterpersonalandinstitutionalrelationshipswiththeprivatesector.Theseactivitieswillhavegreaterimpactsoninnovationiftheyexposeresearchersinnon-agriculturefields(e.g.,chemists,engineers,andcomputerscientists)toissuesinagro-industry.Aspartofthisengagement,universitiesshouldinstitutionalizeconsultingagreements,beingcarefulnottobureaucratizethem,whichcoulddeterfacultyorbusinessesfromengaginginsuchrelationships.ToreiteratetherecommendationoftheSTRIDE2014report,stakeholdersshoulddeveloprevenue-sharingguidelinesandprotocolsforuniversity-industrypartnershipstoimprovemutualtrust.

UniversityKTTOsordepartmentalofficesshoulddevelopresearchcommunicationsorupdatesdirectedatindustryandsendthemdirectly

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toindustrystakeholderselectronically.Thepurposeofthesecommunicationsshouldbetoinformagribusinessesofwhoisdoingwhatattheuniversityintermsofnewprojects,newtechnologies,andtechnologiesavailableforcommercialization.In-personpresentationsarealsorecommended.TheSTRIDEprogramadvocatesmanywaysofbuildingstrongrelationshipsintendedtoeasetheflowofinformation.Theseincludeguestindustrylectures,faculty‘externships’(orimmersions)and‘innovationworkshops’.

Universities’websitesshoulddetailthequalifications,expertise,andup-to-dateresearchexperienceandoutputoffaculty.Additionally,departmentandprogramwebsitesshouldbetterillustratetheircurrentresearchinitiatives,matureresearch,andtechnologytransferachievements.Thesesitesshouldbesearchoptimizedsotheycanbefounddirectlybysearchusingafewkeywords.

Additionally,PCAARRDandDA-BARshouldmaintaintechnology“marketplace”pagesontheirwebsites,detailingtestedtechnologiesthathavebeentestedandarereadytobetransferred.(PCAARRDmentionedplanstolaunchsomethingsimilar.)Ratherthansimplypromotingresearchfunders’achievements,thesesitesshouldcontaininformationusefulforpotentialinvestors.Currently,peopleinterestedinnewtechnologiesmustattendpitchingeventsorvisitthefunders’offices,whichisasignificantupfronttimeinvestment.

Systematicconstraintslimituniversitysupplyofagriculturalresearchand

innovation.

Ø Teachingloadsareheaviestinruraluniversitieswhere

agricultureismoreprominent.

Whereasingeneral,publicuniversities’standardteachingloadsarereportedtobeninecreditspersemester,inlesswell-resourceduniversitiesoutsidetheManilaarea,therequirementisapproximately18creditspersemester.Thisassessmentconfirmedthe2014findingthateventeachingninecreditsconstrainsthebandwidthforinnovation.Becausetheseruraluniversitieshaveanadvantageinproducingpracticalinnovationsandresearchtobenefitfarmers,thisdifferenceinteachingloadrequirementdisproportionatelyaffectsthesupplyoffarm-levelinnovations.

Ø Fundingopportunitiesandguidelinesareperceivedbysomeas

non-transparent.

Becauserules,eligibility,andopportunitiesforfundingarenotperceivedastransparentandpublicallyavailable,researcherswhoarenot

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networkedthroughtheiruniversity,aconsortium,orapersonalconnectionorwhoarelessexperiencedstruggletoaccessfunding.Somefundingagenciespostsomeopportunitiesandinstructionsonline,buttheyaredifficulttofind,incomplete,andoutdated.Thisperceivedopacitycandeterwould-beinnovators.

Recommendations:

Toreiteratetherecommendationfromthe2014assessment,researchfundersshouldpermitfacultytouseresearchgrantsfundstobuyoutor“de-load”theirteachingobligations.Theimportanceofthisfindingisamplifiedforagriculturalresearch.

Agriculturalresearchfundersshouldupdatethesolicitationsectionsoftheirwebsitestomakethemmorecompleteandeasiertonavigate.Allinformationaboutcurrentfundingopportunitiesandfundingguidelinesshouldbelinkedtofromonepage,andeachpageshouldbedatedsothatvisitorsknowtheinformationiscurrent.Thesepagesshouldbeupdatedregularly.Funderscouldalsotrytopromotetheirfundingcallsdirectlytoless-connecteduniversitiesorjuniorfacultythroughinformationsessions,webinars,oruniversityvisits.

Opaqueandinefficientpublictechnologytransferandextensionsystems

impedethediffusionofagriculturalinnovations.

Ø Agriculturalextensionisde-prioritizedbyresearchersand

universities.

Extensionisavaluablechannelforuniversitiestoengagewithfarmers,buildtrust,understandthepracticalneedsofagriculture,anddisseminateresearch.Universitiesrequiretheiragriculturefacultytodividetimeamongteaching,research,andextension.Theteachingloadisaninextricablerequirementthatcantypicallyonlybeescapedthroughadministrativeduty.Researchismodestlyincentivizedthroughhonorariafromfundersanduniversitycareeradvancementrewardsforpublicationsandpatents.However,extension,whilemandated,maybeincentivizedthroughhonorariabutisrarelymonitoredorenforced.Extensionis,therefore,lefttoresearchers’motivationsandresourcefulnessandtheculturesoftheirdepartments.Additionally,researchersaresaidtooftenpreferobtainingfollow-upresearchfundingratherthandisseminationfunding,likely,atleastinpart,becausetheincentivesforresearchoutputaregreater.

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Ø Additionalstagesofgrantfundingarerequiredfortechnology

transition.

First-stageresearchgrantsfundbasicresearchandprototypedevelopment.Researchersmustapplyforasecondstageoffundingtoconductefficacytrialsorpilots.Forresearchthatdoesnotinvolveproductgeneration,grantfundingrarelyincludesabudgetforthedisseminationoftheresearchfindings,soresearchersmustapplyseparately.Thisaddslayersofpotentiallyunrewardedeffortandpotentialdelaysthatdisincentivizeresearchersfromtakingresearchtothetechnologytransferlevel.

Ø Transferfromresearchtoextensionwithingovernmentfunders

canbeinefficient.

TheATI,whichoverseesextensionatthenationallevel,doesnothaveamechanismtoidentifyandtakeovertechnologiesfromuniversities.Instead,itreliesontheDAtopassalongmaturetechnologies.However,theDAmaynotalwaysbeawareofpromisingtechnologiesthatarereadyfordissemination.PCAARRD’sTTPDtrackscompletedprojectstoidentifymatureresearchthatisreadyfortransition,buttheprocessisslowandinvolvesmanysteps.Theregionalresearchconsortiaalsoserveasamechanismfordissemination,butapprovalforfollow-upfundingtotestatechnologystillrequirestheinvolvementofthePCAARRDcentraloffice.

Ø Theprocessforpublictechnologytransferisopaque,which

discouragesresearchersfrompursuingit.

Asdescribedabove,thepathtotechnologytransferiscomplicatedanddependsonthesourceoffundingandseveraldifferentactorsintheecosystem.SomeambiguityexistsregardingwhoisresponsibleforconnectingthetechnologytotheDAoragriculturalextension.Researcherswithmatureinnovationsthatarereadyfordisseminationoftendonotknowhowtodeliverthemintotheextensionsystem.Thisconfusionitselfdissuadesresearchers,whoarenotincentivizedbasedontechnologytransfer,frompushingtechnologiesoverthefinishline.

Recommendations:

Government-fundedtechnologytransferoffices(includingtheATI)shouldbeinvolvedinresearchatanearlierstagesothattheycanidentify,track,andtakeoverresearchwithpromisefortechnologytransfer.Thiswouldallowthemtobeproactiveinrespondingtotheirmandatetotransfertechnologyratherthanreactingtoresearch

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40 | Agribusiness Innovation Ecosystem Assessment

managers.Additionally,itwouldallowentrepreneurialresearcherstocommunicatedirectlywithpeoplewiththesamemotivation:totransferthetechnology.Fundingagencies(i.e.,DA-BARandPCAARRD)shouldcommunicateclearinstructionsandexpectationsfortechnologytransferwhentheyreleaseresearchgrants.

Facultyatregionaluniversitiesshouldhaveincentivesthataretiedtotechnologytransfer,includingextensionactivities.Becauseuniversitiesareresourceconstrained,theseincentivesshouldbestructurednottorewardtimespentdoingextensionactivitiesbutratherontechnologysuccess.Therefore,inthecaseofextension,facultyshouldbeencouragedtoworkwithLGUsandtheprivatesectortodisseminatetheirinnovations.Theseincentivesshouldbealignedandsharedwithfundinginstitutions.Furthermore,moneyfordisseminationshouldbemademoreaccessible.Onepossibilityistoincludefundingintheoriginalresearchgrantandmakeitsreleasecontingentonmeetingcertaintargets.Takentogether,thesesteps—increasingincentivesanddecreasingbarrierstoextension—shouldreducethesupplyofpotentiallygoodinnovationsstuckintheresearchphase.

Lengthyprocessesfornewagriculturalproductregistrationsslowand

deterinnovation.

Pesticide(FPA)andnewfoodproduct(FDA)registrationtimesaresignificantlyslowerinthePhilippinesthaninothercountriesintheregion.Ourintervieweesestimatedthat3‒5yearsarerequiredtobringanewpesticideproducttomarket;thisisapproximately2yearslongerthanneededinneighboringMalaysiaandIndonesia.Thisdelayreducesthechoicesavailabletofarmersanddis-incentivizesinnovationamongcompaniesthatareafraidtheywillnotbea“firstmover”withanewfoodproductinthemarket.Partofthisinefficiencyisattributedtoantiquatedpaper-basedsystems,andtheFPAissaidtobeunderstaffed.

Recommendation:

BoththeFPAandFDAshouldmovetowardsonlineproductregistrationsystemsfollowingregionalbestpracticesandshouldinvestinqualitypersonnelwithincentivesalignedwithexpedience.InterviewswiththeFDAindicatedthattheseimprovementsarealreadyinprogressfornewfoodproducts.TheFPAshouldconsiderupdatingitsregulations,inlinewithgloballyacceptedpolicies.

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References

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Buguis,M.(n.d.).Valuechainanalysisandcompetitivenessstrategy:FreshmangoinMindanao.FinalreportforthePhilippineRuralDevelopmentProgram.Availableat:http://drive.daprdp.net/iplan/vca/VCA%20of%20Mango%20(Mindanao).pdf

Jack,K.(2013.)Marketinefficienciesandtheadoptionofagriculturaltechnologiesindevelopingcountries.AgriculturalTechnologyAdoptionInitiative.

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Appendix:ListofOrganizationsInterviewed

• 1,000Angels• ACDI/VOCA• AgriculturalTrainingInstitute• Agrotiger• AgspecCorporation• AteneodeDavao• Atovi• AustralianCentreforInternationalAgricultural

Research• BureauofPlantIndustry• CacaoDulce• CacaoIndustryDevelopmentAssociationof

Mindanao• CamiluzEnterprises• CaviteStateUniversity• CebuChamberofCommerceandIndustry• CenterforTechnologyTransferand

Entrepreneurship(UPLB)• CloudFarmInnovations• DavaoProvincialAgriculturalOffice• COMPETE(USAIDProject)• DepartmentofAgriculture• DepartmentofAgriculture-Bureaufor

AgriculturalResearch• DeLaSalleUniversity• DepartmentofScienceandTechnology• DowChemical• DepartmentofTradeandIndustry• FarmtechAgrilandCorp• FoodandDrugAdministration

• FertilizerandPesticideAuthority• UniversityofSanCarlos• Ideaspace• ITDI• Kennemer• LaFilipinaUyGronco• LGTImpactVentures• MangoSeedlingFarmCorporation• MtApoCoffee• NaturaleWonders• Nestle• NestleTagum• OroFilipinas• PCAARRD• PCIEERD• PhilippineCoffeeBoard• PhilMech• PuentispinaFarms• RichfundInternational• SamalIslandMangoMarketingCooperative• SouthernPhilippinesFreshFruit• Splash• SubastaCooperative• SouthernMindanaoAgricultureandResources

ResearchandDevelopmentConsortium• UniversalRobinaCorporation• UPLB• UrbanIntegratedConsultants• UniversityofSoutheasternPhilippines