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Enhancing ICT Use for Enhancing ICT Use for Agricultural Innovation Agricultural Innovation

SystemsSystems

Tugrul Temel

January 10, 2007UNU-MERIT, Maastricht

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OutlineOutline

• The problem situationThe problem situation

• Conceptual frameworkConceptual framework- ICT system ICT system

- Agricultural innovation systemAgricultural innovation system

• ApplicationsApplications- Azerbaijan: Agricultural innovation systemAzerbaijan: Agricultural innovation system

- Georgia: ICT use in agricultural organizationsGeorgia: ICT use in agricultural organizations

• The way forwardThe way forward

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The problem situationThe problem situation

• G/R networks provide platforms for I-K exchange at NARSs levelG/R networks provide platforms for I-K exchange at NARSs level

• The focus moves away from NAROs to systems that stress their The focus moves away from NAROs to systems that stress their

interaction with a broad range of public and private orgsinteraction with a broad range of public and private orgs

• Hence, NARSs are now viewed within innovation systems Hence, NARSs are now viewed within innovation systems

frameworkframework

• To adapt to the evolving research/innovation environment, NAROs To adapt to the evolving research/innovation environment, NAROs

need to reform need to reform their management/incentive structures to:their management/incentive structures to:

– Link their research/innovation strategies to wider S&T policiesLink their research/innovation strategies to wider S&T policies

– Establish research partnerships with private enterprisesEstablish research partnerships with private enterprises

– Take advantage of new technologies, particularly ICTs, to interact with Take advantage of new technologies, particularly ICTs, to interact with

global I-K platformsglobal I-K platforms

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The problem situationThe problem situationI-K flow among a broad range of actors I-K flow among a broad range of actors

P

R

B

F

I

M

Pr

C

XLinkages between any two organizations in the AIS

FX Linkage between Farming and External organizations

Organizations outside NARS: Finance (B) Input Supply (I), Marketing (M), Agro-processing (Pr), Consumption (C)

Organizations in NARS: Policy (P), Research (R), Farming (F), External (X)

FX

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An ICT systemAn ICT system

(1)(1) National ICT Policy – redefines sectoral National ICT Policy – redefines sectoral policies (media, telecommunications, policies (media, telecommunications, industry, technology policies), industry, technology policies), boundaries, institutions & regulations boundaries, institutions & regulations

(2)(2) ICT Legislation – sets regimes under ICT Legislation – sets regimes under which regulators operate, like which regulators operate, like competition; ICT Regulation regulates competition; ICT Regulation regulates the implementation of the policy like the implementation of the policy like tariffs, subsidiestariffs, subsidies

(3)(3) ICT Resources - Knowledge ICT Resources - Knowledge infrastructure including universities, infrastructure including universities, research orgs; skilled labor; financial & research orgs; skilled labor; financial & institutional resources institutional resources

(4)(4) ICT Physical Infrastructure – energy, ICT Physical Infrastructure – energy, networking, telecommunication networking, telecommunication infrastructure; computers, the infrastructure; computers, the Internet; TV and radio, telephone fixed Internet; TV and radio, telephone fixed and mobile; networking broadband and mobile; networking broadband

Goal: to promote efficient and effective use of ICTs

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ICT use contributes to MDG 1ICT use contributes to MDG 1

Poverty reductionPoverty reduction• Stimulate Stimulate

macroeconomic growthmacroeconomic growth• Make markets more Make markets more

efficientefficient• Improve social inclusion Improve social inclusion

of isolated groupsof isolated groups• Facilitate effective Facilitate effective

political participation of political participation of the poorthe poor

• Make the government Make the government serve the poor more serve the poor more efficientlyefficiently

Food securityFood security• Increase availability Increase availability

of foodof food• Increase access to Increase access to

foodfood• Improve stability of Improve stability of

availability and availability and accessaccess

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National Innovation SystemsNational Innovation Systems

Defined as:• Freeman (1987) - The network of the public and private

organizations whose activities & interactions initiate, …, new technologies.

• Lundvall (1992) - The elements and relationships which interact in the production, diffusion and use of new knowledge ...

• Nelson (1993) - A set of institutions whose interactions determine the innovative performance of national firms.

• Patel and Pavitt (1994) - national organizations and their incentive structures that determine the rate and direction of technological learning.

• Metcalfe (1995) - A set of interconnected organizations that create, store and transfer the knowledge and skills …

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Implicit assumptions of Implicit assumptions of innovation systems framework innovation systems framework

• InnovationsInnovations take place everywhere in society take place everywhere in society

• KnowledgeKnowledge (formal and informal) is central to (formal and informal) is central to economic developmenteconomic development

• InteractionsInteractions of agents are critical for knowledge of agents are critical for knowledge flow and organizational learningflow and organizational learning

• LearningLearning is as important as direct investment in is as important as direct investment in R&DR&D

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Agricultural Innovation System Agricultural Innovation System (AIS)(AIS)

A set of public and private organizations that A set of public and private organizations that

interact in the generation, diffusion and use interact in the generation, diffusion and use

of improved or new information and of improved or new information and

knowledge that relate to the production, knowledge that relate to the production,

marketing and consumption of agricultural marketing and consumption of agricultural

goodsgoods..

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(1) Agr POLICY, legislative, regulatory structure - Ministries, regulatory & enforcement agencies

(2) Agr Science and Technology KNOWLEDGE Base - Agr Univ, Res-Ext orgs, NGOs for indigenous knowledge

(3) MARKET System - Farmers, Agro-processors, input suppliers, input suppliers,

marketing agents, marketing agents, consumers(4) EXTERNAL Sector - Donors,

International R&D Orgs

Goal: to reduce poverty & food insecurity

Components of an AISComponents of an AIS

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Role of institutions Role of institutions in the innovation processin the innovation process

• Defined as “the rules of the game or more formally the humanly devised constraints that structure human interaction” (North, 1996)

• Shape the agricultural innovation process by determining the efficiency of knowledge creation and exchange, specifically, by managing

– Conflicts (i.e., cooperation mechanisms; legal enforcement; property rights, land tenure).

– Information supply (i.e. labeling regulations provide info on product characteristics and health effects)

– Uncertainty in ecology (i.e. floods); use of natural resources (i.e. governance); livelihood, social and political structures (i.e. land tenure); risk and knowledge uncertainty from new technologies (i.e. biotechnology, new forms of food processing); the actions of agents by enforcing contractual obligations

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ICT use penetrates ICT use penetrates into Innovation into Innovation Systems whenSystems when

• Initial conditions, such as Initial conditions, such as development path, are development path, are compatible with ICT usecompatible with ICT use

• Absorptive capacity is Absorptive capacity is strong (i.e. information strong (i.e. information receivers are competent)receivers are competent)

• Linkage capacity is Linkage capacity is strong (i.e. actors in AIS strong (i.e. actors in AIS interact)interact)

• Competition capacity is Competition capacity is strong (i.e. education, strong (i.e. education, human capital, financing, human capital, financing, investment in learning)investment in learning)

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AIS framework can be usedAIS framework can be used

• To draw rationale for policy interventions and To draw rationale for policy interventions and institutional changesinstitutional changes

• To identify policy capabilities required To identify policy capabilities required (competencies, skills, resources) for the design and (competencies, skills, resources) for the design and implementation of the interventions and implementation of the interventions and institutional reformsinstitutional reforms

• To identify critical gaps in scientific and To identify critical gaps in scientific and technological knowledge basetechnological knowledge base

• To identify critical gaps in technological To identify critical gaps in technological infrastructure for market driven innovation infrastructure for market driven innovation activitiesactivities

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• Mapping I-K flow in the AISMapping I-K flow in the AIS

Components:Components: policy (P), research (R), policy (P), research (R), education (E), credit (C), extension & education (E), credit (C), extension & information (I), private enterprises (M), information (I), private enterprises (M), farming (F), consultancy (D) and external farming (F), consultancy (D) and external (X)(X)

• Characterizing the AISCharacterizing the AIS

• Policy recommendationsPolicy recommendations

Application 1Application 1Information and Knowledge Flow in Information and Knowledge Flow in

AzerbaijanAzerbaijan

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MappingMappingInformation and Knowledge Flow Information and Knowledge Flow

P

R

B

F

I

M

Pr

C

XLinkages between any two organizations in the AIS

FX Linkage between Farming and External organizations

Organizations outside NARS: Finance (B) Input Supply (I), Marketing (M), Agro-processing (Pr), Consumption (C)

Organizations in NARS: Policy (P), Research (R), Farming (F), External (X)

FX

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X

R

P

I

E

D

M

C

F

0

1

2

3

4

0 1 2 3 4

Cause

Effect

MappingMappingCause-effect structure of the AISCause-effect structure of the AIS

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Key findingsKey findings

• Data collectionData collection

- questionnaire, structured interviews and workshopsquestionnaire, structured interviews and workshops

• Mapping the systemMapping the system

- Dominant: consultancy D; to some extent XDominant: consultancy D; to some extent X

- Subordinate: Research policy P; farming FSubordinate: Research policy P; farming F

• Characterizing the systemCharacterizing the system

- Weak absorptive capacity as a wholeWeak absorptive capacity as a whole

- Weak linkage capacity: limited interaction among componentsWeak linkage capacity: limited interaction among components

- Weak competition capacity: absence of competition rules/regulations, Weak competition capacity: absence of competition rules/regulations, inadequate financial resources, but strong human capital in most inadequate financial resources, but strong human capital in most fieldsfields

• Policy recommendationsPolicy recommendations

- Public research (R) should collaborate with consultancy (D), external Public research (R) should collaborate with consultancy (D), external (X) and input supply (I) to provide information to Policy (P) & Farming (X) and input supply (I) to provide information to Policy (P) & Farming (F).(F).

- New communication/collaboration mechanisms should be developed New communication/collaboration mechanisms should be developed for public and private components to interact effectively such as for public and private components to interact effectively such as publicpublic-private partnership in agricultural extension. -private partnership in agricultural extension.

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Application 2Application 2

ICT infrastructure & use in GeorgiaICT infrastructure & use in Georgia

• Goal:Goal: to assess ICT infrastructure and use for setting a to assess ICT infrastructure and use for setting a Horticulture-Viticulture information exchange network (HV-IEN) Horticulture-Viticulture information exchange network (HV-IEN) aimed to facilitate AIS for HV sectoraimed to facilitate AIS for HV sector

• Objective: Objective: to identify those organizations with sufficient to identify those organizations with sufficient capacity to lead the establishment of the IENcapacity to lead the establishment of the IEN

• Rationale:Rationale: Urgent need to participate in markets. IEN Urgent need to participate in markets. IEN reduces reduces the transaction cost of information exchange.the transaction cost of information exchange.

• ConstraintsConstraints: Government is not transparent; pluralistic : Government is not transparent; pluralistic information flow has not been a tradition; absence of public-information flow has not been a tradition; absence of public-private partnership regulations for the establishment of HV-IEN, private partnership regulations for the establishment of HV-IEN, therefore should be first initiated by public research orgs.therefore should be first initiated by public research orgs.

• Data collectionData collection: questionnaire and Needs Assessment : questionnaire and Needs Assessment InterviewsInterviews

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Information Exchange Network

P

R

B

F

M

Pr

C

X

FX

PM

InformationExchangeNetwork

Linkages between any two organizations in the AIS

Additional organizations in the AIS

Organizations in NARS

IInformation flow by:Information flow by:Face to Face Face to Face Meetings; Mass Media Meetings; Mass Media (Radio, Newspapers, (Radio, Newspapers, TV, Magazines); TV, Magazines); Internet/Web; Internet/Web; Telephony, Call Telephony, Call CentersCenters

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RecommendationRecommendation

For agricultural R&D orgs to respond to For agricultural R&D orgs to respond to demands from multiple orgs in the AIS for demands from multiple orgs in the AIS for HV, HV,

– Improve ICT infrastructure (hardware, Improve ICT infrastructure (hardware, software, skills, connectivity)software, skills, connectivity)

– Improve human resources (research Improve human resources (research quality, labor skills) quality, labor skills)

– Improve local contentImprove local content

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So farSo far I have developed a methodology I have developed a methodology

- To characterize the AIS in AzerbaijanTo characterize the AIS in Azerbaijan

- To assess the ICT system in GeorgiaTo assess the ICT system in Georgia

NowNow the challenge is to analyze the challenge is to analyze

- Two-way interaction between ICT use and the functioning of Two-way interaction between ICT use and the functioning of innovation systemsinnovation systems

- Impact of institutional changes on innovation processes and Impact of institutional changes on innovation processes and ICT use (formal rules/regulations; customs/conventions ICT use (formal rules/regulations; customs/conventions embedded in social networks)embedded in social networks)

The way forwardThe way forward

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Two-way interaction Two-way interaction between ICT use and thebetween ICT use and thefunctioning of innovationfunctioning of innovation

systemssystems

For a given country, conduct an ICT survey For a given country, conduct an ICT survey to evaluate ICT infrastructure/useto evaluate ICT infrastructure/use

For the same country, cFor the same country, conduct an onduct an innovation survey to assess critical innovation survey to assess critical capacities (i.e. absorptive, linkage, capacities (i.e. absorptive, linkage, competition) for the functioning of competition) for the functioning of the innovation system; Use the innovation system; Use investment in capacity building for investment in capacity building for absorption; investment in absorption; investment in communication techniques for communication techniques for linkage; investment in linkage; investment in regulatory/conflict mngt regulatory/conflict mngt mechanisms for competitionmechanisms for competition

The way forwardThe way forward

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Survey design & quantitative Survey design & quantitative methods methods

• Survey of organizations in the innovation systemSurvey of organizations in the innovation system

− Org innovationOrg innovation – motivation for the innovation concerned; resources used; – motivation for the innovation concerned; resources used; consequences for organizational performanceconsequences for organizational performance

− Org linkageOrg linkage – nature (codified/tacit), type (coop./ partnership), strength, – nature (codified/tacit), type (coop./ partnership), strength, cost (free/subscription) of interaction with I-K sources (open/limited) cost (free/subscription) of interaction with I-K sources (open/limited)

− Characteristics of I-K flowCharacteristics of I-K flow - direction, nature (codified/tacit), strength & - direction, nature (codified/tacit), strength & means of I-K transfer (capital goods, new employees, patents, licenses)means of I-K transfer (capital goods, new employees, patents, licenses)

− Perceived degree of influence - Perceived degree of influence - Org A is said to influence org B if the I-K Org A is said to influence org B if the I-K originating from A motivates or is used in B’s innovation activitiesoriginating from A motivates or is used in B’s innovation activities

– Learning capacity - Learning capacity - skills and qualifications of human resources, the skills and qualifications of human resources, the capacity to use networking, ICT use in I-K exchangecapacity to use networking, ICT use in I-K exchange

• Apply concepts and principles of systems analysis & graph Apply concepts and principles of systems analysis & graph theorytheory

• Econometrics for estimating ICT’s impact on learning/org Econometrics for estimating ICT’s impact on learning/org changechange

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Thank you…Thank you…