A Typology Analysis of Research and Development Agricultural Public-Private Partnerships Common to the Developing World Bio-economy

William Boland, Peter Phillips, Camille Ryan & Sara McPhee-Knowles

ICABR - June 2013

Objectives:Provide a practical perspective on P3

characteristicsDiscuss incentives, constraints, enablers and

hidden costs associated with P3sDefine differences between R&D P3s and

value-chain P3s Compare findings with previous research

Introduction

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Public-Private Partnerships

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P3s are any collaborative engagements between public, private, and not-for profit actors or institutions Allow for pooling resourcesComparative advantage of each partnerP3 structure facilitates collaboration

R&D: upstream, technology transfer mechanism, compensate for lack of capacity, innovation incentives

Value-chain: Link farmers to distribution systems, create local networks, develop capacity, build export markets, provide quality & safety assurance

Interviewed individuals directly involved with P3s 90 people working with 67 P3s were contacted 20 people with 9 P3s respondedSmall sample size

Methodology

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Interview Questions

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What are the incentives to join a P3?What are the constraints to joining a P3?How have P3s overcome these

constraints?What are the key enablers of P3s?What are the hidden costs associated with

working with P3s?What is the most important lesson you can

offer on P3s?

New governance models – self-organizing networks

Mode 1 & Mode 2 knowledge productionSchumpeter: innovation as a process

where something new is created or adopted from the existing stock of knowledge

Theory

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Theory (cont’d)

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Special people: economic growth depends on creative peopleTechnology, trust, tolerance

Special processes: innovation systems paradigm, Triple Helix theory

Special places: Clusters of firms and economies of scale

Incentives

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Private sector: joins P3s to access networks developed by public sector and develop new markets

Public sector: joins P3s to access distribution systems and funds of private sector

Concerns around misuse of proprietary technologies

Global IPR regimes and controlling illegal transfers of proprietary technology

Lack of experience in developing P3sHidden costs of collaborationFocus on short-term results

Constraints

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Stable macro-political economic environment

Access to long-term financing Design P3 to attract private fundingEmploy brokersEmploy non-profit organizations in linking

roles

Enablers

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Summary of Responses

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R&D P3s Value Chain P3sHidden Costs • Increased gestation periods

• Merging heterogeneous actors

• Travel/variable costs• Structure/process

complexities• Reporting/funding• Infrastructure costs• FTO issues

• Increased gestation periods• Merging heterogeneous actors• Travel/variable costs• Structure/process complexities• Reporting/funding• Infrastructure costs• Traceability and transparency• Cost of developing local

governance capability

Role of Enablers • Ascendant role to that of institutions and policies

• Identifies problems/opportunities

• Funding/expertise• Think ‘outside the box’• Impetus for creation &

sustainability of P3s

• Ascendant role to that of institutions and policies

• Identifies problems/opportunities• Funding/expertise• Think ‘outside the box’• Impetus for creation &

sustainability of P3s• Challenge: Role of P3 ‘experts’

critical to creating value chain P3s

R&D P3s Value Chain P3s

Technology & Knowledge

• Challenge: Control of IPRs; preventing proprietary technologies from challenging market position

• Challenge: Absence of global IPR regime; increased cost of surveillance and enforcement

• Challenge: Proprietary product knowledge and process flows difficult to control/manage; restricts number of potential private-sector partners

Network Structure & Function

• Genesis: operational processes linear starting with one partner, then expanding

• Relationships formed/based on technology needs

• Genesis: heterogeneous networks for capacity development

• Immediate (relatively higher) start-up costs

• Challenge: Require functioning networks to develop governance capabilities prior to creating crop varieties

Summary of Responses

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Building relationships, networks, solutions and capacityP3s depend on people and trust!

Glue in networks P3s need capacity to influence change

Complex problems – complex responseProblems like hunger and poverty cannot be

solved by public or private sectors alone

Lessons

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Experts are essential in P3 formationNeed to understand incentives

What does the P3 offer that is unobtainable in the absence of collaboration

Structure matters!Need clear timelines, plans, and goals

Solutions

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P3s behave as an intermediary – link separate organizations into R&D innovation systems

P3 connects special people with special processes in special places!

P3s provide a structure that mobilizes ideas, individuals and institutions towards finding solutions to poverty and hunger

Strategic implications

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Hidden costs: Related to slow results?

Key role of individuals: Policies and institutions are secondary to people

Value-chain P3s: distinct from R&D P3s Depend on process technology and non-codified

knowledge, more complex to set up Need networks during different development stages:

R&D: linear beginnings, then move to networks Value-chain: networked beginnings to help farmers link to

markets Need for new methods of analysis

Further questions

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Further knowledge of:Hidden costs of P3sRole of R&D and value-chain P3s in networksHigher start up costs for value-chain P3sCritical role of individualsUnique challenges: non-codified knowledge

and trade secretsShort-term capacity shortage in developing

world agricultural P3s

Contributions

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