1. Towards an intervention framework for strengthening agricultural innovation capacity Willem Janssen, SASAR Andy Hall, UNU Riikka Rajalahti, ARD Eija Pehu, ARD

2. The Bank needs to update its concepts and approaches to support agricultural change Early 1980s and beyond Late 1980s Mid- to late1990s Current Bricks and mortar for research systems Management systems Down to the grassroots Innovation systems Evolving approaches to investing in innovation capacity

3. Our first challenge! Can we make this work, or is it theory only? ;Need for an operational model ;Identification of tools and interventions and their expected effects ;Description of intervention processes ;Identification of essential and desirable partners in innovation systems ;Poverty focus

4. From explanatory towards operational innovation systems! 1.Exploring innovation systems theory for analytical purposes 2.Developing a methodology for case study analysis 3.Comparing case studies 4.Key characteristics of innovation 5.Identifying interventions opportunities 6.Towards a framework for diagnosis and intervention 7.Conclusions and implications for the Bank

5. A framework to avoid fads, blueprints, and formulas while still making sense Characteristics 1.Assessment Typology Diagnosis 2.Intervention Principles Options Reasons 1.Understanding is key to successful interventions 2.To match local settings and to provide examples

6. A typology based on leadership and maturity NascentEmergenceStagnationDynamic system of innovation Oppor- tunity driven Medicinal plants, India Shrimp, BangladeshCut flowers, Colombia Pineapple, GhanaVanilla, India Food processing, Bangladesh Pre- planned FoundationExpansionDynamic system of innovation Orches- trated Cassava processing, Ghana Cassava processing, Colombia Public Private Development phase

7. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Evolving towards sustainable dynamics

8. Applying the innovation systems concept for defining interventions in each phase Diagnosis ;……………… Principles of intervention ;……………… Options ;………………. To guide and support practitioners in their own assessments and decisions, not to prescribe

9. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Initiating in the pre- planned phase

10. Diagnosis ;Public and private sector work independently ;No intermediary organizations Principles ;Trust building ;Scanning and managing risk of overengagement Options ;Joint foresight group ;Establishing mixed governance for research and training ;Reducing the risk of investing in new activities

11. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Experimenting in the foundation phase

12. Diagnosis ; A range of opportunities have been identified ;Public and private sector start engaging with each other Principles ;Start collaboration on the range of opportunities ; Improve the enabling environment Options ;Consortia based research funding ;Incentives for international collaboration ;Strengthen farmer organizations ;Develop intermediary organizations ;Venture capital

13. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Building on success in the expansion phase

14. Diagnosis ;Government has identified key opportunities ;Interaction mechanisms in place, but fragile and publicly led Principles ;Strengthen collaboration ;Expand successes and address weaknesses Options ;Revitalize NGO networks for learning and capacity building ;Matching grant schemes ; Establish sector- coordinating body ;Modify university curricula ;Exchange programs between research, industry and universities ;Quality and trade certification

15. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth The nascent phase ……

16. Diagnosis ; Interesting private sector initiatives on a small scale ;Limited awareness in government Principles ;Too early: need for interventions is usually not yet clear ;General business climate Options ;Wait, see and learn until….

17. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Nurturing in the emergence phase

18. Diagnosis ; A cluster of growing success, often based on cost advantage ;Entrepreneurs buying short-term solutions to maintain their edge Principles ;Broaden the actor base for sustainable success ;Support development of other competitive advantages (quality, environment, equity) Options ; Establish sector- coordinating body ;Modify university curricula ;Exchange programs between research, industry and universities ;Quality and trade certification ;International product branding ;Policy dialogues ;Sector specific research fund

19. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Remedial action in the stagnation phase

20. Diagnosis ;The sector got stuck! ;The actors are in the trenches ;Mechanisms for collaboration exist but trust is low Principles ;Trust building ;Embracing change ;Refocusing collaboration on specific issues Options ;Policy dialogues and restrategizing ;Strengthen/revamp sector coordination bodies ;Co-location of research and businesses ;Sector specific research fund ;Incentives for international collaboration

21. Pre-planned phase Foundation phase Emergence phase Expansion phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectoryOpportunity-driven trajectory A continuously evolving subsector delivering economic growth Maintenance in the dynamic phase

22. Diagnosis ; Agility ; Effective interaction between public and private sector ; Synergy between profits, inclusion and environment Principles ;Maintain the health ;Ensure an open system ;Scan the future Options ;Joint foresight group ;Co-location of research and businesses ;Surveys to track innovation domestically and internationally ;Periodic evaluation and redirection of research and training programs ;Trade fairs

23. Examples of intervention options InterventionExample in Agricultural Investment Sourcebook Development phase for which it is relevant 1. Establish a joint foresight group of industry, government, civil society, and research representatives Module 1 Module 12 Pre-planned Dynamic 2. Mechanisms that allow agribusiness to participate in research strategy development, priority setting, and funding Module 12 Module 7 Pre-planned 5. Provide consortia-based research funding to encourage public-private sector interaction on selected priority themes. Module 7Foundation Stagnation 28. Conduct detailed surveys to track innovation in the sector and in other countries; conduct knowledge-sharing events. Module 2Dynamic

24. Conclusions: the nature of innovation Research is important, but not always central to innovation Competitiveness depends on collaboration Social and environmental responsibility are integral to economic success The market is not sufficient to promote interaction; the public sector has a role to play Capacity building to strengthen learning and collaboration is key to fostering innovation The organization of rural stakeholders is central to innovation performance The importance of intermediary organizations An innovation culture requires trust and appreciation of other perspectives Innovation thrives in a proper enabling environment (e.g. where there is values chain coordination

25. Conclusions: the value of the innovation systems concept It helps to identify systemic strengths and weaknesses for sector development, beyond research strengthening In line with what it proclaims, the concept itself will evolve Not a blueprint but it can be adapted to specific phases and to local conditions Potential to integrate poverty and environment concerns The emphasis on parallel development of knowledge generation and application Linking parallel development efforts: CDD&SHG with research and extension investments

26. Implications for the Bank Support to research must focus on developing the interface with the rest of the sector and the rest of society Extension systems must be flexible, user driven and focused on overcoming local problems Agricultural education needs to combine technical, socio- economic and managerial skills Engaging private organizations as partners of government Institutional infrastructure is key. Club goods! Innovation requires institutional experimentation Further collection of experiences with innovation systems tools Fostering the development of a global community of practice

27. Thank you for your attention