Agricultural Innovation in Agricultural Innovation in LAC: Evolution and CasesLAC: Evolution and Cases

Investment Days – TCI FAO

Cesar FalconiDecember 2012

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OutlineOutline• INIA Model in LAC• Innovation: New Approach and Cases• Recommendations

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INIA Model

• Specialized in research supporting production and, including originally food self-sufficiency.

• Important levels of public sector investments in R&D and rapid expansion of research (quantity and quality) 1950s - 1970s.

• Capitalize on the Green Revolution (“spill-ins”); contributed to yields and the growth of production.

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INIA model in LAC: problematic

aspects

• Heterogeneous and unequal distribution in agricultural innovation capacities:• Large number of small

national systems, with very limited capacity

• Some national systems with selective capacity: Chile, Colombia, Costa Rica, Uruguay

• Three countries with ample capacities: Argentina, Brazil, Mexico

• Fatigue of the traditional model (in many cases since the 80's): • Loss of political

autonomy• Resource

depletion/lack of human resources

• Rigid "top-down" management models that led to inadequate technologies and limited rate of adoption (“linear approach”).

Yield Gaps and Potential Expansion:

LAC

Fuente: High Food Prices, LAC Responses to a New Normal (http://siteresources.worldbank.org/INTLAC/Resources/FoodPrices_english_V2_highres_.pdf) 5

Investment in science and technology in LAC: low and uneven across

countries

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R&D Spending as a % Agricultural

GDP

Region 1981 2000

Africa 0,84 0,72

Asia 0,36 0,41

Developed Countries

1,41 2,36

LAC 0,88 1,14

World Development Report World Bank 20087

The main source of funding for agricultural R&D is public and

vulnerable

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Source: Cremers and Roseboom (1997)

LAC 1990's (%)

AR BO BR CH CO CR EC ES PN PE PY TT

Government 41.8% 20.0% 60.2% 68.9% 13.2% 19.5% 90.6% 51.9% 32.8% 28.7% 63.1% 64.3%Private 22.5% 16.0% 38.2% 24.9% 46.9% 23.3% 1.2% 10.2% 3.8% 0.0% 13.3%Universities 32.2% 31.0% 1.6% 38.3% 36.2% 13.2% 0.6% 59.3% 12.7% 22.4%NGOs 2.2% 19.0% 2.1% 1.7% 21.0% 0.5% 10.4% 1.2% 8.2% 2.3%Foreign Investment 1.2% 14.0% 4.1% 8.9% 23.4% 55.1% 21.8%

Source: Author Elaboration

LAC 2000’s (%)

Country AR ('91) BR ('91) CH ('94) CO ('91) EC ('91) GU ('91) MEX ('91) PN ('86) VE ('87) Aver.

Government 21% 95% 41% 80% 58% 71% 88% 62% 82% 66%Sales and services 1% 4% 26% 14% 21% 3% 5% 2% 17% 10%Earnmarked taxes 67% 0% 0% 0% 0% 0% 2% 0% 0% 8%Donor contrib. 0% 0% 8% 2% 12% 1% 4% 5% 0% 4%Private 0% 0% 5% 4% 0% 0% 0% 0% 0% 1%Other 12% 1% 21% 0% 9% 25% 1% 31% 1% 11%

Limited research staff level…..

Country % PhD % MScSupport Personal

per researcher

Argentina 17,2 40,8 0,8

Brasil 64,1 94,2 sd

Chile 25,7 61,9 1,8

Colombia 10,7 42 1,3

Costa Rica 14,3 55,3 1,2

República Dominicana 10 72,6 3,2

El Salvador 0 19,7 0,9

Guatemala 7,5 34 3

Honduras 15,2 42,4 3,5

México 37,9 77,9 1,1

Nicaragua 9,6 56,7 3,3

Panamá 8,1 41,9 1,9

Paraguay 4,8 51,1 2,1

Uruguay 23,6 54,7 1,4

Source: LAC ASTI (2009) 9

Limited linkages wrt national and international organizations

Trigo, Pomareda y Villarreal, IICA, 201210

Area Interaction Intensity (%)

No Interactio

n (%)

Total (%)

High Medium Low

International Programs

24 18 47 12 100

National System 47 13 13 20 100

Agricultural National System

50 6 39 6 100

Limited insertion innovation process (degree of research results insertion

to innovation)

Trigo, Pomareda y Villarreal, IICA, 2012 11

Changed context for the generation and diffusion of agricultural technology

• Open markets• Permanent public budget constraints• Persistence of rural poverty• Intensified inter-linkages between the primary

sector, agro-industry and the retail sector • New scientific potential (biotechnology,post

harvest,etc) • Multiplicity of actors (NGOs, universities, private

sector) • New challenges (intellectual property, bio-

security)

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Towards Innovation….

The response to the above restrictions and challenges has been the introduction of the concept of "innovation" and innovation systems.

In the early 2000s onwards everybody is talking about “innovation", even change the names of the institutions (the "i" in NARS), networks are created (INNOVAGRO) and innovation at the center of the scene.

But the reality is there have been some efforts to change.

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Key Pillars for Strengthening

Innovation

• Recreate (adjust) research capabilities • Promote (design) closer links between research

institutions and other actors in the research system and transfer.

• Promote the development of mechanisms to design and implement innovation policies

Interventions:o National Agricultural Innovation Systemo Research and Technology Transfer Systemo Agricultural Research and Technology Transfer

Institutions/Organizations

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Case: Mexico - Innovation ComponentAdvanced

• There is a National Research and TT System (SNITT)

• With Loan at System level:o Establishing of Product (Maize for small farmers, Fruits and

Vegetables) and Thematic (biotechnology) Innovation Platforms: Increase interaction.

• With Loan at Institutional levelo Strengthen Research and Tech Transfer capacitieso Establishing “External“ Laboratories to link to International

Research Centers

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Case: Dominican Republic – Intermediate

• There is a National Agricultural and Forestry Research System (SNIAF), with limitations.

• With Loan at System level:o Support to develop a Strategic Innovation Plan and Prioritization

• With Loan at Institutional level:o Strengthen Strategic Areas thru : Research and Technology Transfer

Projects (RTTPs) with emphasis on adaptive experimentation, validation, and transfer ( result oriented)

o Development and implementation of a technology transfer and dissemination strategy

o Technological linkage agreements with renowned international agricultural research centers to promote South-South intraregional cooperation

o Formation of partnerships between the private sector (enterprises) and INIA to develop technological solutions and solve specific problems in accordance with market needs. (Technological Product Projects).

o

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Case: Peru – In progress• There is a National Agricultural Innovation

System (SNIA), on paper.• With Policy Loan at System level:

o Support to develop an Agricultural Innovation Policyo Support to define and activate the National Agricultural

Innovation Council, apex of the System

• With Investment Loan (IDB-WB) :o Strengthening SNIA: Technical Secretary, Communication

Strategy, Promote Interaction, Information Strategy. o Establishing Competitive Funds to enhance interactions among

national and/or international actors of system and to promote innovation at national and regional level.

o Strengthening INIA research and technology transfer capacities and its interactions to international research centers

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04/08/23Footer Text 18

National Innovation SystemNational Innovation System

A.Develop a strategy for national agricultural innovation system, within which are identified, players, skills, relevant policies and priority lines.

B.Implement adjustments in the regulatory framework and supporting innovation in areas such as intellectual property, biosafety and animal and plant health, and measures standards systems, and quality systems, among others

C..

National Innovation SystemNational Innovation System

A.Develop a strategy for national agricultural innovation system, within which are identified, players, skills, relevant policies and priority lines.

B.Implement adjustments in the regulatory framework and supporting innovation in areas such as intellectual property, biosafety and animal and plant health, and measures standards systems, and quality systems, among others

C..

Research and Technology Transfer SystemResearch and Technology Transfer System

a. Need to structure a discussion about the roles and priorities of the public sector

b. Develop new tools to increase private funding of research and technology transfer

c. Establishment of institutional governance mechanisms and decision-making more market-oriented and demand to ensure greater participation of not only producers but also other stakeholders, especially the agribusiness

Research and Technology Transfer SystemResearch and Technology Transfer System

a. Need to structure a discussion about the roles and priorities of the public sector

b. Develop new tools to increase private funding of research and technology transfer

c. Establishment of institutional governance mechanisms and decision-making more market-oriented and demand to ensure greater participation of not only producers but also other stakeholders, especially the agribusiness

Agricultural Research InstitutesAgricultural Research Institutes

Strengthen them:

i.institutional and organizational frameworks that generate greater and more effective participation of the various stakeholders, and funding structures responsive to the characteristics and requirements of the research activities

ii.development of human resources, and infrastructure - laboratories and databases - both conventional areas and in new sectors (biotechnology, precision agriculture, postharvest and agroindustry);

iii.management capabilities in key issues of the new product research and technological development (intellectual property consortium projects, technological linkage, biosecurity, etc..); and

iv.schemes and tools for coordination with the various stakeholders in the technology transfer systems (knowledge management, policies and mechanisms for managing operational partnerships, etc..).

Agricultural Research InstitutesAgricultural Research Institutes

Strengthen them:

i.institutional and organizational frameworks that generate greater and more effective participation of the various stakeholders, and funding structures responsive to the characteristics and requirements of the research activities

ii.development of human resources, and infrastructure - laboratories and databases - both conventional areas and in new sectors (biotechnology, precision agriculture, postharvest and agroindustry);

iii.management capabilities in key issues of the new product research and technological development (intellectual property consortium projects, technological linkage, biosecurity, etc..); and

iv.schemes and tools for coordination with the various stakeholders in the technology transfer systems (knowledge management, policies and mechanisms for managing operational partnerships, etc..).

GRAZIE MILLE

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