From Research to Innovation: Transforming NARS to NAIS

NAARM

NH Rao National Academy of Agricultural Research Management, Rajendranagar, Hyderabad

1

Agenda

NAARM

Rationale for the NARS to NAIS transformation emerging scenario of agricultural research Innovation perspective ICAR response

Technology and Innovation in NARS

Technology Spectrum of NARS
High yielding and resilient crop varieties and planting materials Biotechnological products, diagnostic kits, biofertilizers, bionutrients, biocontrol (IPM models), etc. Animal and poultry breeds and fish strains Improved dairy, poultry and fisheries technologies Vaccines & Diagnostics, Animal Nutrition, Livestock products technologies and Veterinary medicine Improved farming tools, equipments and processing machineries Postharvest processing technologies and value added products Natural resource management technologies

NAARM

Computer software and data sets

Other processes and products of agriculture and allied sectors

Innovation : knowledge / products/ technologies successfully introduced into an economic or social process (Spielman, 2006)

Agricultural scenario - changing context of production systems

NAARM

Agri- outputs = f (policies, markets, technology/knowledge, stakeholder interests) Multifunctionality of outputs: commodities (food, feed, fibers, biofuels, medicinal products, ornamentals) non-commodities (energy, environmental services)
Fig Source: USDA, 2011
4

Changing perspectives of agricultural research

Agricultural production systems are increasingly driven by: consumer preferences markets than state intervention integration through trade quality and regulatory frameworks National and global policy consensus (for predominantly small holder based rural economies): need to raise rural incomes for inclusive growth agricultural research & technological improvements will continue to be prime drivers for raising rural incomes value addition in agriculture is largest untapped source of income

NAARM

Market structure

Farming structure

Rising private investments in research investment and IP ownership structure Societal expectations of accountability & sustainability accountability structure

value addition links farmers with consumers and research with innovation
5

Changing structure of farming: small holdings, diversification

NAARM
Predominance of agriculture in workforce

Shrinking land holdings

Declining share of Agri- GDP

Concern: Inclusive growth diversification

Source: Gulati, 2010

Agricultural Scenario - changing market structure

traditional markets

NAARM

numerous small producers and retailers products are traded by price and quantity large number of intermediaries in procurement limited public quality standards With globalization consolidated producers and retailers products are traded by price, quantity & quality intermediaries important in implementing standards and aggregation
Fig source: Lee et al, PNAS, July 2012

public & private quality standards

Paradox in India: fragmentation of producers and consolidation of retail

7

Changing investment structure: increasing role of private sector and scope for synergies through PPP

NAARM

Company
Bayer

Crop protection
730

Seed/ biotechnology
110

Total (R&D as % of sales)

840 (11%)

Syngenta
Monsanto Pioneer BASF CGIAR ICAR (XI FYP)

500
40 215 340 -

310
490 312 93 -

810 (11%)
530 (10%) 527 (11%) 433 (10%) 428 ~ 400

In sectors like biotechnology investment capacities of private sector >> public sector

Adapted from : Spielman, 2007 8

Agricultural Scenario private investment - Global market for agricultural inputs supplied by the private sector and R&D intensity (2006)

NAARM

R&D spending in animal health industry

R&D spending in animal nutrition industry

Source: USDA-ERS, 2011

Changing Intellectual Property ownership structure:

International: TRIPS patents, copyright, TM, TS, GI, designs PVP sui generis systems/UPOV CBD origin, national rights to natural resources, traditional knowledge, PIC, equitable benefit sharing FAO-IT plant genetic resources PCT standardized patent application and search process to facilitate quick international protection

NAARM

National Institutional mechanisms: Patents Act, PPV&FRA, other IP related Acts, NBDA, SBDA; (conformity with TRIPS, CBD, FAO-IT)

Compatibility between TRIPS and CBD/FAO-IT (?)

10

The new IP Drivers (contd..)

NAARM

High costs of technology protection and commercialization Annual research expenditure per patent in top 30 universities in USA: US $ 3 to 26 million

Annual research expenditure per start-up company in top 30 universities in USA: US $ 21 to 379 million

Transgenics Cost of development of a marketable GE cultivar (Monsanto): >US $800 m Time taken: 15 yrs from development to commercial release cost of development of marketable product > 20 times development of homozygous transgenic plants costs of regulatory compliances: up to US $ 4 million or higher only a few universities are generating significant returns from licensing activities 11

IP and agricultural research - Freedom to Operate concerns

Public Vs private sector distribution of patents 25% patents in public sector (UCS 1.7%; USDA 1.2%) 75% private sector Fragmentation of IP = Less freedom to operate Private sector companies consolidate IP by mergers etc. Private sector IP dominated by 5 firms (14% Monsanto; 13% Dupont; 4% Syngenta; Bayer; 3% Dow) no public institution owns sufficient package for complete product

NAARM

Fig source: Howard, 2009

Seed industry structure, 19962008

12

Innovation perspective

NAARM

innovation knowledge introduced and utilized in an economic or social process (Spielman, 2005) Innovation system: a network of organizations, enterprises, and individuals focused on bringing new products, new processes, and new forms of organization into economic use, together with the institutions and policies that affect their behavior and performance (World Bank) Innovation is multidimensional engages economic, environmental, social and political dimensions of production and utilization of knowledge Innovation engages multiple agents: individuals, public and private institutions turning research into innovation needs combining different types of knowledge, capabilities, skills and resources

requires research be embedded in wider relationships through publicprivate partnerships

requires education to adapt to promoting innovation
13

Research to innovation: crossing the valley of death

NAARM

Application/use
Research
research can take place anywhere (universities, public institutions) innovation generally takes place in firms (private sector) or by entrepreneurs

Innovation Valley of Death

activities and processes associated with generation, production, distribution, adaptation, and use of new technical, institutional, organizational and managerial knowledge
14

publicprivate partnerships constitute a new model for bridging the valley of death and accelerating innovation
Fig Source: Branscomb, 2000

Agricultural Innovation System

NAARM
complex backward and forward linkages between agricultural research, production, agroindustry and consumers NAIS includes public sector, private sector, farmers, consumers, and partnerships

Fig Adapted from: Birner, 2007

15

Transforming NARS: Transition from research systems to innovation systems

NAARM

organizing principle: innovation systems (not research systems) demand driven approach: interactive process requiring demand-oriented organization of research and education multidimensional engagement: economic, environmental social and political, dimensions of production and utilization of knowledge research embedded in wider relationships: PPP

simply changing mandates and adding new interests will not work
required - institutional reengineering, partnerships, and capacity building, to address complex backward and forward linkages between consumption, agricultural production, agroindustry, employment and rural livelihoods

16

ICAR Response

NAARM

launched NAIP as Pilot in 2006 coinciding with XI plan The general objective of the project is to contribute to the sustainable transformation of Indian agricultural sector from a food self-sufficiency orientation to a market orientation in support of poverty alleviation and income generation The specific objective is to accelerate the collaborative development and application of agricultural innovations between public research organizations, farmers, private sector and other stakeholders

. extension of on-farm approach of NATP to value chain approach

17

The agricultural value chain

NAARM

focus on commodities and value addition

add and accumulate value from one link to next in the value chain
innovations at each link for improved competitiveness complex forward and backward linkages along value chain through public-private partnerships (PPP)

18

Sustainable Rural Livelihood Security

NAARM

Fig Source: DFID Development & validation of sustainable farming systems based on on-farm action research Transferring promising technologies under NATP and other sources including ITK emphasized regional / theme-based consortia partnerships with NGOs, Govt Depts

Agricultural research

Regions selected from 150 disadvantaged districts

19

Innovation perspective in NAIP

NAARM

science-driven innovation to double agricultural growth rate, enhance profitability, sustainability, and competitiveness and ensure livelihood security end-to-end problem-solving pilot based on partnerships in consortia mode research-market linkages - reposition research to address the business and development challenge enhance cutting-edge research capacity maximize impact: fund small number of large projects in each component development activities connected with research: scaling up; pilot plants; sustainability of research findings

Consortium approach is central to the NARS to NAIS transformation Consortium: a formal coherent group of partners to jointly undertake identified tasks in a defined time-frame while sharing work agenda and resources according to an agreed contract
20

Key differentiators

NAARM

Culture and mindset New Governance structure MOUs with private partners Monitoring and Evaluation Financial management System

procurement system

21

Barriers to PPP

NAARM

cultural barriers primary accountability systems are different different incentive structures negative perceptions / trust high transaction costs

competition over financial and other resources

conflicts on IPR too few role models to guide

22

Recent initiatives: XII Plan

NAARM

AgriInnovate India Research platforms

23

NAARM

Thank you

24