Agricultural Innovation Systems: An Introduction

Agricultural Innovation Systems: An Introduction Andy Hall LINK-United Nations University-MERIT Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Important definitions No. 1: Innovation
Innovation: The process of creating and putting into use combinations of knowledge from many different sources
This knowledge may be brand-new, but usually it is new combinations of existing knowledge
To be termed innovation, the use of this knowledge has to be novel to the farmer or the firm, neighbours and competitors, but not necessarily new globally
Invention, on the other hand, is the creation of new knowledge new to the world, usually by research organisations, but also by artisans and others
Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Important definitions No. 2: Institutions
The difference between institutions and organisations is as follows: Organisations are bodies such as enterprises, research institutes, farmer cooperatives and government or non-government organisations (NGOs), while institutions are the sets of common habits, routines, practices, rules or laws that regulate the relationships and interactions between individuals and groups (Edquist, 1997).

Different ways of stimulating innovation Knowledge only has meaning in its domain of existence Knowledge is truth and can be transferred Knowledge constructs INC. Interactive learning give rise to concerted action EX. Diffusion processes organised by extension/ the market Assumptions on how social impact is achieved Structured around action Research-to-“extension”-to-farmer Communication Multiple stakeholders, including research Centralised/ Science research Sources of ideas Systemic Linear Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Vijaya Association: Mango Export Quantity Improvement Project Export development authority Farmers Export markets Vijaya Public Horticulture Research Private technology services Technology Market information Technology Market information Mangoes Mangoes Agricultural university Public food science research Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Why didn’t it work?
Important public sector technical expertise “locked-up” with limited exposure to farmers or a commercial context — and the historical reasons for this
Related pre- and post-harvest expertise “locked-up” in different non-communicating organisations/ research organisations
Bureaucratic habits and practices made it difficult for scientists to develop new ways of working with the private sector and farmers
– i.e., they prevented process/ institutional learning
Vijaya lacked technical and managerial competencies to focus technical inputs on the problems of its farmers
Concluded that research and innovation is embedded in and shaped by many relationships, contexts and ways of working

Innovation systems: What is it?
Concept to help reveal and deal with the partnership and institutional issues that shape innovation processes and shape the contribution of research to that process

Innovation Systems: Definition
A system of innovation involves all the actors and their interactions involved in the production, use of knowledge, and the institutional and policy context that shapes the processes of interacting, knowledge sharing and learning
It recognises:
Multiple knowledge bases, including research but also others
It is a capability to innovate, not just today but in ever-changing environments — i.e., it is a dynamic adaptive capability
It is embedded in and defined by the institutional and policy contexts that shape the ways actors and organisations behave

Why research-to-innovation?
Old challenges for agricultural research
Operation and management of large public agencies
Difficulties of matching supply with demand for technology and dealing with heterogeneous social and physical contexts
New challenges for agricultural research
Increasing complexity of mandate: Growth, Poverty and Environment
Emergence of new players beyond the State
The emergence and dynamics of New Agriculture and the changing relationship of the poor with the sector

Innovation and new agriculture
Sectors: Livestock and aquiculture, flowers, horticulture, medicinal plants, agro-processing, biofuels, fibers, forest products
Drivers : Opening up of world markets, changing trade and IPR rules, new technology urbanisation, industrialisation of the food chain
Features: Players outside of the state. Diversity. Small niche sectors but dynamic. Reaches the poor through employment. Knowledge-intensive.
Challenges: Requires continuous knowledge-intensive innovation to compete and cope in rapidly-changing conditions, to strengthen equity and sustain the environment

Clone development Rootstock development Virus diagnostics Canopy management Irrigation and drainage Climate controls/ monitoring Vineyard software management Integrated pest management Harvesting methods VITICULTURE KNOWLEDGE BASES IN THE WINE SECTOR Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Unique cepages & blends “ Soft” equipment Yeasts Temperature controls Hygiene Maceration Barrel ageing Quality testing VINICULTURE Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Appellation and quality standards Tourism and hospitality Wine competitions Wine education Exports Mergers and acquisitions Vertical integration Premium contracts for grape growers Brand development Online retailing ORGANIZATIONAL & MARKETING Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Origins of the Innovation Systems Concept
Limited ability of economic models that relied on linear assumptions about R&D leading to innovation to inform policy of how to promote innovation-based competition in dynamic and rapidly-changing technical, institutional and economic environments
Create space for more systemic, interactive and evolutionary models of Nelson and Winter, Dosi, Freeman, Lundval and, later, others. Initially discussed in terms of national systems of innovation. Now in terms of sectors, including agriculture

Key insights from the framework
Focus on innovation
Neither science nor technology nor invention, but the application of knowledge. Can be acquired through learning, research or experiences. Often it comprises new combinations of existing knowledge
Linkages between partnerships and networks
Acquiring knowledge and learning are interactive experiences, requiring linkages with different knowledge bases. Not just linking, but linking for learning and acquiring knowledge.

Key insights (continued)
New actors, new roles
Broad range of actors outside the State
Relative importance of different actors changes during innovation process
As circumstances change roles evolve
Actors can play multiple roles
Less compartmentalised
The role of institutions
The habits and practices of organisations that shape their propensity to interact, to learn, to access and share knowledge and to take risks
Determines the way actors respond to triggers to innovate and to policy incentives
Very context-specific and has to be factored in to efforts to develop innovation capacity
Embeddedness

Key insights (continued)
The role of policies
Support of innovation, not the outcome of single policy, but a set that works together to shape innovative behavior
Habits and practices interact with policies and need to be accounted for and counterbalanced. E.g., public-private sector partnerships; participation
The inclusion of stakeholders and the demand side
Demand is a signal for innovation. Habits and practices are required if systems are to sensitive to the agendas of stakeholders. Non-market linkages are important, particularly where stakeholders are poor

Key Insights (continued)
Dynamic nature of innovation systems
Habits and practices are learnt behaviors emerging through experiences.
Institutional innovations
New approaches and ways of working often require new partners
Co-evolution of contexts and connections
Reconfiguring linkages is the classic response of successful innovation systems in the face of external shocks
Because innovation is an adaptive capacity, having the networks that provide early warning information and the skills and social capital to respond to shocks is a central attribute of successful innovation systems

Agricultural Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

Measures of Success
Static — Survival of the sector, growth rates, value, labour absorption
Dynamic — Preparedness to deal with change. Increased innovation capacity denoted by widening (more links, better social capital) and deepening (new competencies, habits and practices) of the system

Hypothesis
The creation of a dynamic innovation capability requires habits and practices/ institutions, policies and support structures that promote interaction, learning, knowledge flows, inclusiveness and risk taking

Insights from a recent study
Even strong incentives to innovate are not enough to create new networks for learning
Habits and practices are the main bottlenecks to new arrangements emerging and to innovation, more generally
Technical and institutional change are interelated
There is a need to simultaneously strengthen market-based linkages as well as knowledge-based linkages

What does this mean for research organisations?
Centrality of partnerships
Network development
Development of a stakeholder dialogue
New governance mechanisms
New agenda of systems capacity development
New research
New roles
New organisational culture and ILAC
New skills and disciplinary mixes

Options
Beware of local contexts and apply flexibly and experimentally and adjust accordingly
Concentrate on process as well as product outcomes
Within agricultural research organisations
Team building across disciplines; training in partnering, reflection and learning; ILAC programmes
Between research organisations and private companies
Stipulation of competitive grant schemes, use of third party agencies, joint supervision of students, industrial placements, joint advisory committees, joint reviews and ILAC exercises
Between governments, private companies, research organisations and NGOs
Foresight exercises, commodity associations, joint task forces and committees of enquiry

LINK is a specialist network of regional innovation policy studies hubs established by the United Nations University-MERIT (UNU-MERIT) and the Food and Agriculture Organization of the United Nations (FAO) to strengthen the interface between rural innovation studies, policy and practice and to promote North-South and South-South learning on rural innovation. Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

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Agricultural Innovation Systems: An Introduction

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