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SCIENCE, TECHNOLOGY, RESEARCH AND INNOVATION FOR DEVELOPMENT (STRIDE)
Agribusiness Innovation Ecosystem Assessment May 2017
Science, Technology, Research and Innovation for Development (STRIDE):
Agribusiness Innovation Ecosystem Assessment
Prepared for USAID/Philippines/Office of Education
Prepared by RTI International 3040 Cornwallis Road Post Office Box 12194 Research Triangle Park, NC 27709-2194 RTI International is a registered trademark and a trade name of Research Triangle Institute.
RTI International is one of the world’s leading research institutes, dedicated to improving the human condition by turning knowledge into practice. Our staff of more than 3,700 provides research and technical services to governments and businesses in more than 75 countries in the areas of health and pharmaceuticals, education and training, surveys and statistics, advanced technology, international development, economic and social policy, energy and the environment, and laboratory testing and chemical analysis. For more information, visit www.rti.org.
This publication was produced for review by the United States Agency for International Development. It was prepared by RTI International. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. Cover photo credit: Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development.
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Acknowledgments
TheauthorswishtoacknowledgewithappreciationandrespectthecontributionsandsupportprovidedbytheUnitedStatesAgencyforInternationalDevelopment(USAID)/Philippines.WealsoacknowledgetheactorsinthePhilippineagribusinessinnovationecosystem,includingtheGovernmentofthePhilippines,whogavetheirtimeandinsightstothisstudy;afulllistofintervieweesisprovidedintheappendix.
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Contents
PAGE
List of Figures ....................................................................................................... vi
List of Tables ........................................................................................................ vii
Abbreviations ....................................................................................................... viii
Introduction ............................................................................................................ 1
Rapid Assessment Methodology and Crop Overviews .................................... 5
Interview Approach ........................................................................................... 5Value Chain Selection ...................................................................................... 5Interviewee Identification .................................................................................. 6
Innovation-to-Growth Pathway .............................................................................. 8
1. Identification of Need ................................................................................ 82. Generation and Testing of Innovations .................................................. 12
University Research ................................................................................ 12Private Sector R&D ................................................................................. 15Startups and Entrepreneurs ................................................................... 16Government Research ............................................................................ 17
3. Transition Pathways ............................................................................... 17Social Pathways ..................................................................................... 18Commercial Pathways ............................................................................ 20
4. Innovation Introduced to Users .............................................................. 275. Innovation Used to Upgrade Operations ................................................ 30
Key Findings and Recommendations .................................................................. 32
Recommendations ......................................................................................... 33Recommendations: ........................................................................................ 34Recommendations: ........................................................................................ 36Recommendations: ........................................................................................ 38Recommendations: ........................................................................................ 39Recommendation: .......................................................................................... 40
References .......................................................................................................... 41
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Appendix: List of Organizations Interviewed ....................................................... 42
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ListofFigures
PAGE
Figure 1. RTI Innovation Ecosystem Model ........................................................... 1
Figure 2. 2014 STRIDE Innovation Ecosystem Scorecard .................................... 2
Figure 3. Innovation to Growth Pathway ............................................................... 4
Figure 4. Overview of the Crops Addressed in This Paper: Mango, Cacao, and Coffee ....................................................................................... 7
Figure 5. Technology Transfer Actors in the Agricultural Extension System ....................................................................................................... 27
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ListofTables
PAGE
Table 1. Government Bodies Quick Reference ..................................................... 8
Table 2. Government Agricultural Research Prioritization ..................................... 9
Table 3. Extension Modalities in the Philippines ................................................. 28
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Abbreviations
ATI Agricultural Training Institute
BPI Bureau of Plant Industry
DA Department of Agriculture
DA-BAR Department of Agriculture-Bureau of Agricultural Research
DOST Department of Science and Technology
DTI Department of Trade and Industry
FDA Food and Drug Administration
FPA Fertilizer and Pesticide Authority
IP intellectual property
ISP industry strategic plan
ITDI Industrial Technology Development Institute
KTTO Knowledge and Technology Transfer Office
LGU Local Government Unit
NGO nongovernmental organization
NMRDC National Mango Research and Development Council
PCAARRD Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development
PCIEERD Philippine Council for Industry, Energy, and Emerging Technology
PhilMech Philippines Center for Post-Harvest Development and Mechanization
PhP Philippine pesos
R&D research and development
SMEs small and medium enterprises
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STRIDE Science, Technology, Research and Innovation for Development
SUCs state universities and colleges
TOT training of trainers
TTPD Technology Transfer and Promotion Division
UPLB University of the Philippines-Los Baños
USAID United States Agency for International Development
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Introduction
TheScience,Technology,ResearchandInnovationforDevelopment(STRIDE)programaimstostrengthenthecapacityofPhilippineuniversitiestoconductscienceandtechnologyresearchalignedwiththegrowthneedsoftheprivatesector.The5-yearUnitedStatesAgencyforInternationalDevelopment(USAID)-fundedprogram,implementedbyRTIInternational,aimstodriveinclusivegrowthbyimprovinguniversities’research,policy,andmanagementcapacitiesandengagementwiththeprivatesector.STRIDEworkscloselywithuniversitiesandindustriestocreateanetworkofresearchers,entrepreneurs,andinvestorswhoinnovateandturnideasintoproductsandcompanies.Todothis,weencourageindustriestobecomeactivestakeholdersinuniversityresearch,assistuniversitiestobecomemarket-drivenproviders,andbuildinstitutionalstructurestosupportandsustainthissystem.Theprogramhelpsuniversitiesdevelopappliedresearchcapabilitiesandtechnicalcurriculaandbuildaprofessionalworkforcewithworld-classtechnology.Asaresult,theprogramteamhopesthatmorePhilippinegraduateswillbeequippedtoparticipateintheglobaleconomyasemployees,researchers,andentrepreneurswithinthePhilippines.
AgribusinessisaprioritysectorfortheSTRIDEprogram.ThirtypercentofthePhilippineworkforceisengagedinagriculture(WorldBank,2016),andwithaveragefarmsizesbelow2hectares,agricultureisintrinsicallylinkedtopovertyandis,therefore,vitalforinclusivegrowth(Lowder,Skoet,&Singh,2014).Inthiscontext,innovationwithinthesectorcanhavetransformationalimpactsonproductivity,income,andemployment.Forexample,amangodisease-managementtechnologycouldincreaseyieldsforthe2.5millionsmallholderfarmersengagedinmangoproductionandincreasesalesforinputproviders,traders,andprocessors.However,simplyinventingthetechnologywillnotachievethis.Inagriculture,morethaninanyothersector,thecomplexdynamicsoftheinnovationecosystemcanfacilitateorimpedethegeneration,dissemination,andadoptionofsuchinnovations.
Anagriculturalinnovationisanewtechnologyor
Figure 1. RTI Innovation Ecosystem Model
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practicethatcanbeadoptedbyaproduceroragribusinessto“upgrade,”orimprove,operations,typicallyresultingingreateryields,higherqualityproducts,costsavings,orimprovedsustainability.Theagriculturesectoriscontinuouslyinnovatingandupgradingtoadapttothechangingenvironmentandmarketconditionsandimprovecompetitiveness.Aninnovationecosystemincludesalltheactorsinvolvedinresearchandinnovationandinthepoliciesandsocialnormsthataffectactors’behaviorsintheecosystem(Figure1).Theecosystemapproachlooksattheinterlinkagesandinteractionsamongactorsintheinnovationeconomyandtheimportanceoftheincentivestheyencounterinthepursuitofinnovation(Wessner,2005).Awell-developedinnovationecosystemlinkstheinterestsofindividualactorswiththeecosystemintransformingideasintousefulproductsandservices.Further,ahealthyinnovationecosystemchannelssomeoftheprofitsfromtheprivatesectorintoresearchandinnovation,resultingininnovativecommercialproductsthatgrowtheeconomy.Whenthissucceeds,itcreatesavirtuouscycleofmoreresearchandinnovationandmoreinnovation-drivenprofitsintheeconomy,pertheSTRIDEInnovationEcosystemAssessmentof2014(RTI,2014).Thissector-neutralreportassessedthesixfactorsinthePhilippineinnovationecosystem,intermsofsupply,demandandtheenablingenvironment,asshowninFigure2.
Figure 2. 2014 STRIDE Innovation Ecosystem Scorecard
The2014assessmentalsoledtofourkeyfindings,whicharesummarizedbelow:
1. One-size-fits-alloverlycomplicatedprocurementlawsslowtheprocurementofresearchequipment,diminishingresearchandinnovationproductivity.
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2. Researchgrantsdonotcompensateuniversitiesforresearchers’time,leadingtocompetitionwithresearchers’teachingresponsibilities.
3. Universitieshaveunrealisticexpectationsforpatentrevenue,whichdiscouragesindustrypartnerships.
4. Mutualmistrustandmisunderstandingbetweenuniversityandindustrystrainscollaboration.
TheseissueswerevalidatedbykeyplayerswithintheinnovationecosystemandhavebeentargetedbySTRIDEanditspartnerssincethereportwasreleased.
The2014reportassessedfactorscommonacrossallsectors.However,whilethecross-sectoralfindingshavegeneralrelevance,therearesectoralfactorsthatdonotemergefromtheoriginalstudy.Toexploreoneofthekeysectorsmoredeeply,STRIDEinitiatedafollow-upagriculture-specificassessment.Theinnovationecosystemforagriculturefunctionsinwaysthatareuniqueincomparisontoothersectors.Becauseagricultureisintrinsicallylinkedtopovertyandfoodsecurity,dominantinstitutionswerefoundedonandmaintaintheethosthatagriculturalinnovationsarepublicgoods,developedforthebenefitofthefarmer.Throughthispaper,weexploretheimplicationsofthisethosonthediffusionandcommercializationofinnovation.Furtherdifferentiatingthesector,theGovernmentofthePhilippinesisheavilyinvolvedinboththefundingofagriculturalresearchandthetransferoftechnologies,andusersofagriculturaltechnologiesaredispersed,whichimpedesthediffusionofinformation.
Thepurposeofthisreportistoassesstheinnovationecosystem,specificallyforagribusinessinthePhilippines.ItaimstoinformSTRIDEanditsstakeholdersaboutthevariousactorsintheagribusinessinnovationecosystemandhowtheyareconnectedandidentifystrengths,weaknesses,andopportunitiesforinterventionstoimproveitsoverallfunctioning.Thereportdoesnotpresenttheopinionsoftheresearchersbutrathercompilestheperspectivesofvariousstakeholderswithintheecosystem.Withinagriculture,theassessmentfocusedonthreespecificvaluechains—cacao,coffee,andmango—asrepresentativeexamplesforthesectorwritlarge.Manyoftheelementsoftheinnovationecosystem,suchasgovernmentextensionandresearchfundingentities,arecommontoallcrops;thus,thefindingsaregeneralizable.
Thestructureofthereportoutlinesfivestagesonthepathwayfrominnovationtoagriculturalgrowth(Figure3).Weadapttheframeworkusedinthe2014assessmenttodelineatethispathway.Ineachstage,weanalyzethekeyactors,relationships,andcriticalfactorsthatfostersuccessfulinnovation.
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Figure 3. Innovation to Growth Pathway
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RapidAssessmentMethodologyand CropOverviews
TheSTRIDEteamdevelopedacustommethodologytoenableadeepdiveintotheinnovationecosystemwhileensuringthattheassessmentwasconductedinatimelyandefficientmanner.Giventherobustanddiverseagribusinesssector,twocoreelementstothisapproachincludethefollowing:(1)developingaframeworkandresultingquestion“guide”ratherthanemployingafixedsurvey,and(2)selectingvaluechainsthatcouldberepresentativeoftheecosystem.
INTERVIEWAPPROACH
Theassessmentteamusedaquestionguidebasedontheconceptualframeworktoensurethatkeytopicswerecoveredwhileallowingforinterviewstorevealunanticipated,relevant,andinterestinginformationabouttheagriculturalinnovationecosystem.Additionally,thisstrategyallowedinterviewstobeconversational,encouragingrespondentcandor.Thisopen-endedapproachtodatacollectionwasnecessarybecausetheassessmentisaprocessoflearningabouttheinnovationecosystemandhowstakeholdersviewitsfunctioning.
VALUECHAINSELECTION
Whereasmanyecosystemfunctionsarecommonacrossallagriculturalvaluechains,weselectedthreespecificvaluechainstoallowforamorein-depthassessmentofsupplyanddemandactors.STRIDEfocusedoncacao,coffee,andmango—smallholder-dominatedcropswithgrowingmarkets,butthatrequireadoptionoftechnologiesandinnovationstomeetmarketpotential.Wedidnottargetcropsproducedprimarilyonplantationsbymultinationalcompanies,suchasbananasandpineapples,thesecompaniesareexpectedtosourcetheirnewtechnologyinternationally.Likewise,spicesandothernichecropswereeliminatedbecauseoftheirmodesteconomicsignificance.Cacao,coffee,andmangoareincludedintheDepartmentofAgriculture’s(DA’s)HighValueCropsDevelopmentProgramandfacegrowingdomesticandinternationaldemand.Theselectionprocesswasconductedin
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consultationwithseveralPhilippineagriculturalexperts.InFigure4,weprovideahigh-leveloverviewofeachvaluechainandthetypesofinnovationusedateachstageofproduction.
INTERVIEWEEIDENTIFICATION
Theassessmentteamconductedover65interviewsintheagribusinessinnovationecosystemoverthecourseoffivemonthsin2016.Ourobjectivewastoconductinterviewswithrepresentativesofeachecosystemfunctionandforeachvaluechain.Weidentifiedintervieweesthroughbackgroundresearchandpreviouslyconductedvaluechainstudies,STRIDEprojectandpersonalcontacts,andthe“snowball”method(referralsfrominterviewees).Afulllistofintervieweesisincludedintheappendix.1
1Wedorecognizethatsomebiasmayexistamongthoseactorswhoarewillingtobeinterviewed.Forexample,companiesthataremoreprotectiveabouttheirinnovationstendtobelesswillingtosharetheirpracticesandcontributetothisreport.Wetrytoincorporatethisintoourfindingsandtriangulatethroughinterviewswithindustryrepresentatives,suchasthechamberofcommerce,whocanspeakonbehalfofsuchorganizations.
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Figure 4. Overview of the Crops Addressed in This Paper: Mango, Cacao, and Coffee2
2 Data sources: FAOSTAT, UN Comtrade.
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Innovation-to-GrowthPathway
Thissectionassessestheinnovationecosystemateachofthefivestagesofthepathway,highlightingkeyfindingsfromourinterviews.Foreachstage,weassesstherelationships,actors,andpolicyfactorsthataffectinnovation.
1. IDENTIFICATIONOFNEED
Thefirstcriticalstageintheinnovation-to-growthpathwayistheidentificationofaneedforinnovation.Foragriculture,inthisstage,privatesectoractors,suchasfarmers,agro-inputcompanies,orprocessors,identifychallengesorinefficienciesintheiroperationsthatcouldbeimprovedormademorecompetitivewithaninnovation.Themostimportantelementofthisstageisthatinnovators(includingresearchers)canaccuratelyidentifytheseneeds.Thus,strongrelationshipsbetweenresearchandindustryarecrucial.Inthissection,wediscusstheprimarywaysthroughwhichinnovatorsgaininsightintoagribusinessneeds.
InthePhilippines,thegovernment(withstakeholderinput)assumestheprimaryroleofidentifyingneedsforagriculturalinnovationandcommunicatingthoseneedstouniversityresearchers.Thegovernmentofferssubstantialfundingthroughvarioussources—primarilytheDepartmentofScienceandTechnology(DOST)andDA—thatcanbeaccessedbyuniversityandpublicsectorresearcherstoconductresearchandgenerateinnovations.(Table1providesa
quickreferencetogovernmentbodies;Table2aguidetoresearchprioritizationprocesses.)TheDOSTdevelopsprogramsalignedwithnationalR&Dpriorityareasandsubmitsbudgetrequeststofundthem.DOSTfundingprioritiesalsoalignwiththeindustryroadmapsdevelopedbytheDepartmentofTradeandIndustry(DTI).Thus,insomecases,thereisadirectdemandforR&Dfromaspecificindustryassociation.Inthepast,theDOSTacceptedunsolicitedproposals.Now,itidentifies
Table 1. Government Bodies Quick Reference
GOVERNMENT AGENCY RELEVANT SUB-AGENCIES
DOST Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) Philippine Council for Industry, Energy, and Emerging Technology (PCIEERD)
DA Bureau of Plant Industry (BPI) DA-BAR Agricultural Training Institute (ATI) Philippines Center for Post-Harvest Development and Mechanization (PhilMech)
DTI
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needsforresearchandonlyfundsproposalsthatadheretothosespecificdemands;however,persomeinterviewees,thischangehasnotbeenfullyrealizedacrossallDOSTarms.TheDA-BureauofAgriculturalResearch(DA-BAR)isalsoasubstantialsourceofpublicfundingforagriculturalinnovation.
Table 2. Government Agricultural Research Prioritization
AGENCY RESEARCH PRIORITIZATION AND ALIGNMENT WITH INDUSTRY NEED
PCAARRD
• Develops an industry strategic plan (ISP) for each priority commodity (including mango, coffee, and cacao).
• The ISP process includes a stakeholder meeting to ensure that the plan addresses private sector needs.
• Productivity levels for each crop are benchmarked against other countries, and gaps to achieving productivity are identified.
• Once the ISP is established and validated, researchers submit proposals for research to address specific needs.
• The proposal evaluation process includes validation of the local market demand for the innovation.
DA-BAR
• Research priorities align with DA-BAR’s 6-year strategy based on the political cycle. • The priorities are informed by a consultative process with a broad range of stakeholders.
However, some interviewees noted that farmers are underrepresented in the consultative process and that, sometimes, the events are conducted in English, which some farmers do not speak.
• Research proposals are accepted on a rolling basis in alignment with strategic directives.
• A second stage of proposal review is conducted with industry, and the proposals are evaluated based on the potential for dissemination of the research findings.
BothDAandDOSTemploymulti-stageproposalevaluationprocessesandincorporatemechanismstoensuretheindustryapplicabilityoftheresearch.However,severalintervieweesfromtheprivatesectorperceivedfundedresearchtobeimpracticalornotusefultoindustry.Onerespondentnotedthatresearchersarenotrequiredtoidentifyanyrealmarketdemandbeforereceivingfunding;althoughtheDOSTinvitestheprivatesectortoevaluateproposals,theseoutsidereviewersarenotprovidingfundingandare,therefore,lesscriticalintheirevaluations.OneDArepresentativetoldtheresearchteam,“Allresearchshouldhaveanapplication—thatisourweakness.Researchersareconfinedbythefourcornersofaroom.Butresearchshouldbefortheneedsofthepeople,notforeducationpurposes.”Oneuniversity-basedintervieweesuggestedthatobtainingin-kindcommitmentsfromprivatesectorcounterpartsattheproposalstagewouldimproveviability:“Itshowsthatsomeoneactuallywantstoselltheproduct.”Someprojectsandfundersalreadydothis,butitisnotthenorm.
Thepublic-sectorresearchprioritizationandfundingprocess,whichisdescribedabove,isonemethodofidentifyingandcommunicatingneeds
FindingSomestakeholders
perceivegovernment-fundedresearchas
“impractical”or“notusefultoindustry.”
FindingFarmersarenotwell-representedinthe
processofidentifyingneedsforinnovation.
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foragriculturalinnovation.Anothermodalityisdirectlinkagesbetweenindustryandacademe.Ifstudentsanduniversityresearchershavedirectconnectionstofarmersorcompanies,theycanmoreseamlesslyidentifyneedsforinnovation.However,ourresearchuncoveredveryfewinstancesofdirectacademe-businesslinkages.Indeed,onlyahandfulofone-offinstancesinwhich,becauseofaresearcher’sownnetworkorexperience,s/hewasawareofaneedforinnovationwereidentified.Studentsinnon-agriculturalfields(notably,engineers)whocomefromfarmingfamiliesmaybeawareofrelevantchallengesandhaveadesiretodevelopsolutions.However,itwasnotedthat,particularlyforengineersandchemists,ifstudentsdonothaveapersonalconnectiontoagriculture,itisunlikelythattheywillbecomeawareoftheneedsforinnovationinthissectorthroughtheireducation.OnenotableexceptionisNestlé,whichengageswithuniversitiesandundergraduatestudentstoinnovateonissuesrelatedtocoffee,nutrition,andtheenvironment.
Facultyresearchersmaybeabletobuildrelationshipsbyconsultingforprivatecompanies;however,mostsuchconsultingopportunitiesarisethroughexistingrelationships.Administrativebarrierspreventuniversitiesfromcapitalizingonfacultyconsultingarrangementsandinstitutionalizingrelationshipswithindustry,asdiscussedfurtherinSection5.
PrivateagribusinessesrarelydrawontheexpertiseofPhilippineuniversitiesforR&D.Large-scale,commercialgrowerscanmoreeasilycollaboratewithinternationalresearchersthroughtheiraffiliationswithlargeinternationalbuyers.OnesuchcompanymentionedthatresearchwithPhilippineuniversitiesisoftendrivenbytheinterestsoftheresearchers,ratherthanmarketdemand.Additionally,theynotedthattheydonotperceiveuniversityresearchasusefuland,therefore,donotactivelypursueit,althoughresearcherssometimesapproachthemaboutcollaborations.Oneagribusinessrepresentativedescribedhowauniversityapproachedtheircompanytoaskforaco-investmentinthedevelopmentofalocalenzyme.However,thebusinessprojectedthattheproductwouldneverbeprofitable,andthus,declinedthecollaboration.Thisexampleunderscorestheneedformarketvalidationinthefirststageofinnovation.Oneintervieweedidnotethatalarge,multi-nationalfruitcompanyhadcommissionedsomespecificresearchrelatedtofertilizerfromtheUniversityofthePhilippines-LosBaños(UPLB.)
Additionally,mutualmistrustpermeatesindustry-academerelationships,andbureaucratichurdlesandIPconcernscandissuadecollaboration,reiteratingthefindingsfromSTRIDE’s2014study.Oneintervieweenotedthatacompanywasplanningtocommissionapublicuniversitytodevelopenzymes;however,6monthsintothenegotiations,thepaperworkhadstillnotreachedtheuniversityapprover.Insomecases,privatesectorintervieweesdemonstratedaninterestinleveraging
FindingDirectrelationships
betweenacademeandagribusinessesarerare.
FindingPrivateagribusinessesrarelydrawonthe
expertiseofPhilippineuniversitiesforR&D.
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universityexpertisebutcouldnotidentifytheappropriateexpertsorwereunawareofspecificcapacitiesforinnovation.Further,privateagribusinessesmentionedlackingrealincentivestocollaboratewithuniversities.
Inonenotableexceptiontothisfinding,theagro-inputcompanyLaFilipinaUyGrongarecentlydonatedfacilitiestoCentralLuzonStateUniversityandUPLBforresearchonhogsandanimalfeednutritioncontent.Thisdonationwaspartlyintendedtoachievecorporatesocialresponsibility,butthecompanyalsoexpectsthatthesefacilitieswillpositivelyimpactthetrainingandrecruitingofgraduatesandtheprovisionofresearchandtestingservicesfortheirfeeds.Wedidnotencounteranythingsimilarinourselectedcropvaluechains.
Industryassociationsorsector-specificresearchcentersmaybemorelikelytoconnectwithuniversitiesthanindependentcompanies.Oneprivateuniversityreportedworkingdirectlywiththenationalcoffeeresearchcentertoidentifyresearchneedsandsolutionsinthesector.Similarly,thecacaoindustryassociationinMindanaoispartneringwiththeUniversityofSouthernMindanaoonclonalimprovementsforpestanddiseaseresistance.
Anotherformofuniversity-privatesectorlinkagethatcanfacilitatetheidentificationofneedsforinnovationisagriculturalextension.3Universitiesareresponsibleforextension,andsomefacultyaremandatedtodividetheirtimebetweenteaching,research,andextension.4Thisoccurstovaryingdegreesacrossfacultyanduniversities,andtheincentivesforextensionareweakerthanthoseforresearchandteaching,althoughfacultycanreceivehonorariaforextension.Universitiesinagriculturalproductionareas,suchasDavao,arenaturallymoreinvolvedinfarmerextensionthanthoseclosertoManila.IntervieweesatUPLBindicatedthatfacultyparticipateinextensionbutonlywhendoingsoispartoftheirresearchprojects.
Needscanalsobeidentifiedwithintheprivatesectororbyindividualentrepreneurs.Thissectionhasfocusedlargelyonhowuniversityresearchersidentifyneedsforagriculturalinnovationsbecausetheyaredisconnectedfromindustry.Withinprivatecompanies,thisprocessismucheasier;one(multinational)inputcompanydescribedusingitsdistributorstoconductlocalmarketresearchtoinformnewproductdevelopment.Similarly,alocalinputdistributor,whichsellsprimarilytoplantations,reportedbeingapproacheddirectlybytheplantationwhenanewproductisneededandthensourcingitlocallyorabroad.SomeprivatesectoractorscommunicateR&Dneedsdirectlytothe
3Farmertrainingandtechnologydemonstration.AgriculturalextensionisdiscussedindepthinSection3D.4Inbetweenresearchandpublicationofthisreport,theCommissiononHigherEducationissuedanorderwhichmaychangethesemandates.
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FindingGovernmentfundingis
perceivedtobeconcentratedatUPLBandotherlargeuniversities
closetoManila.
governmentagenciesthatcanhelpaddressthem—mainlytheDAandDOST.PrivatecompaniescancontractDOSTagenciestoconductresearchdirectlyorsubmitarequesttotheDAforpubliclyfundedresearch.ThefollowingsectionincludesadiscussionofPhilMech,IndustrialTechnologyDevelopmentInstitute(ITDI),andprivatesectorR&D.
2. GENERATIONANDTESTINGOFINNOVATIONS
Onceaneedforinnovationhasbeenidentifiedandcommunicatedtoinnovators,theinnovationmustbegeneratedandtested.Inthissection,wediscusstheprimarywaysthroughwhichagriculturalinnovationsaregeneratedinthePhilippinesandthecriticalfactors—namely,fundingandresearchcapacity—thatenableinnovationatthisstage.
UNIVERSITYRESEARCH
MostagriculturalresearchandinnovationinthePhilippinesoccursinuniversitiesandisledbyindividualfacultymembers.Asdiscussedintheprevioussection,PhilippineuniversitiesprimarilyaccessagriculturalresearchfundingfromPCAARRDandDA-BAR,whichhadresearchbudgetsofapproximately650millionand1.2billionPhilippinePesos(PhP),respectively,in2015.PCIEERDandtheCommissiononHigherEducationalsoofferfundingforagricultureandfoodprocessing.5
WhereastheDOSTreleasesspecificcallsforproposalswithfixedbudgetceilingsandapplicationdeadlines,DA-BARhasanopenfundingwindow.DA-BARisviewedbysomeresearcherstohavelesscumbersomeandtime-consumingproposalrequirementsandtobefarquickeratdispersingfundingthanDOST.Accordingtoonesource,fundingfromDOSTmaytakeaslongasayeartobedisbursed,andfundingamountscanchange.
Accesstofundingvariesbyuniversityandresearcher.FacultywithstrongreputationsatrelativelyprestigiousschoolsclosertotheManilaareacanaccessresearchfundsandaresometimesapproacheddirectlybyfundersfortargetedresearch.Infact,intervieweesperceivedthat50‒70percentofPCAARRDfundinggoestoUPLB.6Incontrast,DA-BARfundingismoregeographicallydispersed,althoughnearlyonethirdgoestoUPLB.PCAARRDsolicitationsareannouncedandbidthroughtheirregionalresearchconsortia(describedinmoredetailinSectionD),butnotall
5Asof2008,thePhilippines’agriculturalresearchintensityratio(shareofspendingonresearchtoagriculturalgrossdomesticproductwasinlinewiththoseofIndonesia,Bangladesh,andThailandbutbehindthoseofMalaysia,China,andIndia(ASTI2013).Morerecentbenchmarkingdatawerenotavailableatthetimeofthisstudy.6ResearcherscouldnotacquireanaccuratefigurefromPCAARRD,butPCAARRDintervieweesestimatedthatthepercentagewaslower.
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FindingNationalfundingfavorsexperiencedresearchers.
FindingTheuniversitiesmostcloselyconnectedto
farmersmaybeleastlikelytoaccessresearchfunding.
universitiesinaregionaremembersoftheseconsortia.
Governmentfundingfavorsexperiencedresearchersbecauseitisheavilydependentonthetrackrecordsofboththeuniversityandtheresearcher.Therefore,itcanbedifficultforyoungresearcherstoaccessfunds,particularlyatlesser-knownuniversities.Someuniversitiesrecognizethisissueandtrytopairjuniorandseniorresearchersonprojects,andsomefundingopportunitiestargetjuniorfacultyspecifically.Nationalfundingisalsodifficultforfirst-timeresearchersanduniversitiestoaccessbecauselocatingthesolicitationsandguidelinescanbechallenging.Oneresearcherataprivateuniversityreportedbeinginterestedinnationalfundingbutcompletelyunawareofwhereorhowtolocatesuchfundingopportunities,evenafterconductingwebsearchesonfunders’websites.TheauthorsofthisreportsearchedonlineandfoundthatfundingguidelinedocumentationisavailableonthePCIEERDandDA-BARwebsites,butitisscatteredacrossmultipledocumentsandunclearwhetheritisup-to-date.WewereunabletolocateresearchfundingguidelinesonPCAARRD’swebsite.
Someresearchersareapprehensiveaboutsubmittingproposalsonlineforfearoflosingownershipoftheirresearchidea.Thatis,thereisaperceptionthatlesser-knownresearchers’goodideasmayberedirectedtoresearcherswithwhomthefundingagencyismorefamiliar.Regardlessofitsveracity,thisperceptioncandiscouragenewresearcherswholackapersonalconnectionwiththefundingagencyfromsubmittingproposals.
Channelingfundingtouniversitiesandresearcherswithstrongreputationsreducestherisktofundersandmay,tosomeextent,beattributabletothoseuniversities’objectivelystrongerscientificcapabilities.However,foragriculture,morethananyothersector,theseadvantagesmustbebalancedagainsttherelevanceoftheresearchandextensionadvantagesofuniversitiesbasedinkeyagriculturalproductionareas,especiallyMindanao.UniversitiesthatarefarfromManilaandhavestrongerconnectionstofarmersmayhavebetterinsightregardingpracticalandmarketableinnovationsandbebetterpositionedtodisseminateimpactfulappliedagriculturalresearch.However,theseuniversitiesmayalsohavemoredifficultyaccessingresearchfunding(despiteactiveeffortsfromPCAARRDandDA-BARtoreachregionaluniversities).
Onepotentialconstrainttoaccessingfundingisproposalwritingcapacity,althoughthisissueisnotuniquetoagriculture.Awiderangeofproposalwritingabilitiesexistsamongresearchersandisnotcorrelatedwithresearchquality,asnotedbyintervieweesandobservedbySTRIDE.However,mostuniversitiesdonotprovideproposaldevelopmentoreditingservices.STRIDEobservedthatresearchofficesdonotfunctionasproposalgatewaysforfaculty.Furthermore,someresearchersmaybe
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intimidatedbytherequirementsinvolvedinapplyingforandadministratingresearchfundingandbediscouragedfromapplying.Someintervieweesindicatedthatthesecapacitiesconstituteaweaknessamongresearcherswhoarenotfamiliarwiththerelevantpoliciesandregulations.
Thoughveryfewprivateuniversitieshaveagricultureprograms,privateuniversitiesoftenhavemoreefficientandlesscumbersomefundmanagementandhumanresourceandprocurementsystemsandregulations.Thus,privateuniversitiescanbemorecompetitiveonsomeproposals.Partnershipsbetweenprivateandstateuniversitieswheretheprivateuniversityistheprimaryapplicant,allowingthepartnershiptotakeadvantageofitsloweroverhead,arerare.UPLBandotheruniversitieshavesetupprivatefoundationtobypasscumbersomeuniversityregulationsandprocureandmanageresearchmoreefficiently.Thefoundationisonlyintendedtomanageappliedresearch.
Humanresearchcapacityisperceivedasstrong,eveninuniversitiesoutsidemetroManila.However,studentenrollmentinagriculturaldisciplinesisdeclining,andsomeconcernsaboutthefuturesupplyofresearchareemerging.7Despitestrongcapacity,thebandwidthforresearchisaconstraint.The2014assessmentfoundthatfinancialcompetitionbetweenuniversities’teachingandresearchobjectivesbecauseoftheinabilityofgovernmentresearchgrantstocompensatefacultyforresearchtime(effectivelyde-loading)createsadisincentiveforfacultyresearch.Ourresearchvalidatedthismisalignmentofincentivesintheuniversitiesweinterviewed.Facultystatethattheycannotgiveadequatetimetoresearch(andextension)becauseofheavyteachingloads.Standardteachingloadsvarybetweennineand18credits,andsomeintervieweesperceivedtheteachingloadstobehigherinmoreruralandresource-strappedstateuniversities.Thus,teachingrequirementsfurtherconstrainthesupplyofappliedagriculturalresearch.
Thereissomeflexibilityinallocatingteachingandresearchworkloadsforhigh-performingfacultyatstateschools,butthisflexibilityisnotcommonlyutilizedbecauseresourceconstraintsmeanthatteachingloadsmustbemaintained.Privateuniversitiesaremoreflexiblewithteachingloads.Additionally,researchfacilitiesandequipmentarelackingatmoreruraluniversities.Somesharingofresearchfacilitiesbetweenuniversitiesexistsandisencouragedbyfundingagencies.Intheabsenceofthisfundermandate,universitiesappeartobereluctanttosharefacilitiesbecausetheresearchersmanagingtheequipmentareheldresponsibleifitbreaks.
7DecliningenrollmentinagriculturalprogramsinthePhilippinesisdocumentedextensivelyinBrionesandCarlos(2013),sowedonotfocusonthisissue,despiteitsimportanceforgeneratinginnovations.
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Normsaroundresearchcollaborationandcompetitionweredescribedwithmixedopinions.Manyintervieweesnoteddifficultyinencouragingcollaborationamongresearchers,particularlyacrossdisciplines.Somefacultybelievetheywilladvancemorequicklyiftheykeeptothemselves,whereasotherssimplylackthetime,incentives,orpersonalconnectionsnecessarytojoinprojects.Youngerfacultytendtobemorelikelytocollaborate,sharedfacilitiescanfostercollaboration,andsomefundingfromtheDOSTiscontingentoncollaboration.
Collaborationacrossmultipleuniversitiesisalsoafactor.Collaborationoutsideofpersonalnetworksisconstrainedbythelimitedinformationonfacultyresearchexpertisethatisavailableonline.TheDOSThasprograms,includingtheregionalconsortiamodel,thataredesignedtoincorporatestateuniversitiesandcolleges(SUCs)intoitsresearchprojectsand,likeUPLB,didnotindicatetheexistenceofanydivideorcompetitionbetweenthem.However,inMindanao,universitiesreportedanorth-southculturaldivideandalackoftrustthatpreventscollaborationbeyondthatmandatedbyPCAARRD.Alackofcollaborationwasalsonotedbetweenthevariousgovernmentagenciesinvolvedinagriculturalresearchandtechnologytransferandbetweenuniversitiesandthegovernment.“Turfing”considerationsweredescribedasabarriertocollaboration.
PRIVATESECTORR&D
LargemultinationalcompaniesinvolvedinagriculturalproductiontendtosourceR&DfromtheirinternationalheadquartersandthentestitunderPhilippineagronomicconditions.Somelargebuyersthatinvestintheirproducers(orplantationsforothercrops)havetheirownresearchanddemonstrationfarmstodevelopagronomicbestpracticesfortheirfarmers.Weencounteredlimitedprivatesector-leddomesticR&Doninputs,withmostconventionalinputsbeingimportedtoorassembledinthePhilippinesfromimportedcomponents.Foragro-inputs,itisbelievedthatthePhilippineswillneverreachtheeconomiesofscalenecessarytocompetewithimportsonprice.Asmentionedintheprevioussection,theprivatesectorrarelyengagesuniversitiesinR&Defforts,exceptforusingexportsforthefieldtrialsrequiredforproductregistration.
ChemicalfertilizerandpesticidemanufacturersareoftenpartofmultinationalcorporationsordesignatedregistrantsoftheirproductsinthePhilippines.Formultinationals,R&Disconductedinternallybutnotlocally.Forexample,onelargechemicalcompanyexplainedthatnewmolecules(forpesticides)aredevelopedatglobalR&DheadquartersandsubsequentlycascadedtothePhilippinesforfieldtrialsinlocalenvironments.ThisiscommonpracticeamongsimilarcompaniesbecauseitismoreefficienttoconductR&Datcentralizedfacilitiesin
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countrieswithmoreadvancedR&Dcapacities.Thecompanythatmadethisobservationdoes,however,haveateaminthePhilippinestoidentifylocalmarketdemandfornewtechnologiesandcommunicatethedemandtoitsheadquarters.
Seedlingnurseriesaretheprimarysourceofnewcoffee,cacao,andmangotrees.Theprimaryinnovationofinteresttotheseactorsislikelynewvarietiesornewstrainsofpopularvarieties.However,mostnurseriesarenotactiveinR&D.Indeed,manynurseriesarebasedinothercountries,anditcanbedifficulttosourceplantingmaterialssuitableforspecificPhilippinelocalities.Forexample,oneMindanaocacaoseedlingproviderinterviewedconductsitsownR&Donbothcacaovarietalbreedingandcost-effectivefertilizermixing.
Smallandmediumfoodprocessorsandmanufacturersdevelopnewproductslargelybasedontastethroughtrialanderrorandinternetresearch.Inthecaseofchocolate,somehavegoneabroadtoEuropeantrainingsorhiredforeignconsultantstolearnhowtomakequalitychocolate.Mostinnovationisaimedatreachinginternationalqualitylevelsforchocolateandcoffee.Largecompanieshaveproductdesignteamsanddevelopnewproductsbasedonmarketresearchandfoodlabexperiments.OnemajorfoodcompanyconsidersitsownproductdesignteamandfacilitiescomplementedbyinternationalconsultantstobesuperiortoPhilippineuniversities’andresearchers’capacities.Severalsmallandmediumenterprises(SMEs)awareoftheservicesofferedbytheDAandDOSTleveragegovernmentR&Dsupport.However,thisprimarilyoccursonthepost-harvestandmanufacturingsides;wedidnotencounteranexampleofinputcompaniesleveraginggovernmentresearch.
STARTUPSANDENTREPRENEURS
Independententrepreneursmayalsogenerateandtestnewtechnologysolutionsforagriculturewiththeintentionoftransitioningthemintostartupcompanies.However,thisisnotcurrentlyasignificantsourceofagriculturalinnovationinthePhilippines.Onestartupacceleratornotedthatonlyapproximatelyfourpercentoftheapplicationstheyreceiveareforstartupsintheagri-foodsector.Theyfurthernotedthatagriculturestartupstendedtobestudentrun.Onepossibleexplanationforthelackofagri-foodstartupsisthefocusoninformationtechnology,computerprogrammingandengineering;studentsinthesedisciplinesarenotexposedtothechallengesinthefoodandagriculturesectors,exceptviafamilyorpersonalconnections.Oneintervieweesuggestedan“agri-hackathon,”whichcouldexposeprogrammersanddeveloperstoindustrychallengesandencouragecollaborationandnewprojectsinthisspace.TheInternationalRiceResearchInstitutesponsoredahackathon
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specificallyforricein2013,whichgeneratedseveralpromisinginnovations.However,whetheranyoftheseinnovationshavebeenscaledorcommercializedremainsunclear.
GOVERNMENTRESEARCH
Someinnovationsaregeneratedandtestedbygovernmentagencies.Exceptforhigherpriorityriceandcoconuts,governmentcropresearchishandledbytheDA’sBPI.8Forexample,BPI’sNationalMangoResearchandDevelopmentCouncil(NMRDC)onGuimarasconductsmangoresearch.Ingeneral,BPI’sroleinresearchhasdecreasedasitsregulatoryresponsibilityhasexpanded.BPIprovidesamodest2.5millionPhP(US$48K)annuallyforresearchandcompeteswithuniversitiesforDA-BARandPCAARRDfunding.
OthergovernmentresearchagenciesincludetheITDI,anR&DinstitutethatispartofDOST,andPhilMech,whichisfundedthroughtheDA.ITDIconductsresearchonfoodprocessingandmanufacturingprimarilyinalignmentwithDOSTindustryroadmappriorities.Approximately20‒30percentofITDIresearchiscontracteddirectlybySMEsthatdonothavein-houseR&Dcapabilities.ITDIhasthehighestqualityequipmentforfoodprocessingresearch,andthus,sometimes,universitiesrentitsfacilitiesforspecificprojects.Additionally,throughtheFoodInnovationCentersproject,ITDIishelpingestablishregionalfacilitiesforfoodprocessingresearchbasedatSUCs.OneintervieweeindicatedthattheprivatesectorismorelikelytoengageITDIforresearchthanuniversitiesbecauseuniversitieslackthenecessaryequipment.
PhilMechdevelopsnewpost-harvesttechnologiesforDAprioritycommodities.TheintendedbeneficiariesofPhilMechR&Daresmallholderfarmersandsmall-scaleprocessorsandmanufacturerswhocannotaffordtoinvestintheirownR&D.PrivatecompaniescansubmitrequeststotheDAbutdonotcontractspecificassignmentswithITDI.IfprivaterequestsalignwithDAprioritiesandfundingisavailable,PhilMechwillrespond.PhilMechtechnologiesaredevelopedwiththegoalofbecominga“publicgood”andarenotlicensedtoindividualcompanies.
3. TRANSITIONPATHWAYS
DifferentpathwaysexistthroughwhichaninnovationcanbetransitionedoutoftheR&Dstageandintouse.Thisprocessisfrequentlyreferredtoastechnologytransferortechnologytransition.Thesepathwaysaredescribedbelowusingtwocategories:socialpathways,
8ThePhilippineCoconutAuthorityandPhilRiceconductresearch.
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whichareoftensponsoredbythepublicsector,andtraditionalcommercialpathways.BecauseoftheimportanceandsmallholdernatureofagricultureinthePhilippines,socialpathwaysaremorecriticalthantheyareforothersectors.
Noclearcriteriaordecisionpointexistsforwhetheragiventechnologyshouldfollowacommercialorsocialpathway.Infact,thislackwascitedasanissuethatconstrainsthecommercializationoftechnologies.Thepathwayfollowedoftendependsonthesourceoffunding;typically,DA-fundedprojectsarepublicgoods.However,ambiguityand,often,discordarisesbetweenthepro-commercializationmentalityoftheresearchfunderandtheethosofagriculturaluniversitiesthattechnologiesaredevelopedtohelpfarmersand,therefore,shouldnotbeexploitedtoearnaprofit.Additionally,sometechnologiessitsquarelyinthegrayareabetweensocialandcommercial.Thesetechnologies,suchasthefertilizerssoldbyagriculturaluniversities,areownedbytheuniversity,manufacturedatlimitedscales,andsoldatbelow-marketpricestowalk-incustomers.Becausenoonestandstoearnanythingfromtheirsale,limitedpromotionoccurs.
SOCIALPATHWAYS
Inthissection,werefertonewtechnologies(e.g.,seeds,fertilizers,andmaterials)aswellasresearchrelatingtoagriculturalpractices(e.g.,integratedpestmanagementoroptimalvarietiesforagivenregion)generatedbyuniversityresearcherswithpublicsupport.Bothareconsideredinnovations.Fortheseinnovationstoenterthepublicagriculturalextensionsystem(discussedinsectionD),universitiesandfundingagenciesmust“transfer”them.Thistransferoccursdifferentlydependingontheagencyfundingtheresearchandthenatureoftheinnovation.Thetransferofphysicaltechnologies,suchasfertilizers,requiresmanufacturinganddistribution,whereasresearch-informedpracticescanbepromotedthroughinformationsharingandtraining.
ForDA-BARresearchperformedbyuniversitiesandgovernmentbodies,DA-BARpassestechnologiesontotheATIafterthegrantee’sresearchanddemonstrationhavebeenapproved.DA-BARleadsthisprocess;ATIdoesnotseekoutinnovationstodisseminateorhaveaformalprocedureforsolicitingthemfromuniversitiesorothersources.Formally,PCAARRD-fundedresearchshouldbeapprovedbyPCAARRD’scentralTechnologyTransferandPromotionDivision(TTPD)beforebeingdisseminated.However,theprocessforidentifyingmatureresearchthatisreadyfordisseminationisadhoc.SeveralannualeventsareheldatwhichPCAARRD-fundedresearchersareinvitedtosharetheirresearchfindings.TTPDhasidentifiedthisasachallengeandiscurrentlymore
FindingThereisnoclearsystemfor
identifyingmatureresearchreadyfor
disseminationortransfer.
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INNOVATIONBRIEF
MechanicalMangoHarvesterwithRiserTeam:Dr.RogerMontepio,UniversityofSoutheasternPhilippines
IdentificationofNeedTraditionalharvestingmethodcanbreakmangostemsandcausesbrownstainsonthefruits’skin,makingthemimpossibletoexportandthereforesignificantlydecreasingtheirmarketvalue.
GenerateandTestInnovationFunding:
• Two-yearPhilippineCouncilofAgriculture,Aquatic,andNaturalResourcesResearchandDevelopment(PCAARRD)granttodeveloppost-harvestmangotechnologies
• FundingwasdelayedbyadministrativeissuesResearch:
• Developedamodificationofthetraditionalstick-and-basketmangopicker• DesignwasbasedonanAustralianmodelwithknifebladesonthebaskettocutthemango
stem• Researchteammadeadditionalimprovements,includingaddingatriggermechanismthatcuts
stemswithoutpullingTesting:
• Newharvesterreducedstainingbynearly80%,butincreasedharvestingtime
TransitionoutofResearch:“Social”/UniversityPathwayFunding:PCAARRDhasapproveddissemination,butapprovalwasnotgrantedintimefortheteamtoapplyforcommercializationfunding.Startupsupportservices:TheteamofagriculturalengineershaslittleexperienceinmarketplanningandassessingcommercialviabilityandwillrelyontheDepartmentofTradeandIndustryforsupport.IntellectualProperty:Thepatentapplicationforthepickeriscurrentlypending.
IntroduceInnovationtoUsers• Plannedcommercializationanddistributionthroughtheuniversityfarmstore• Willselltofarmersandlocalgovernmentunitsfordistribution• Feedbackonthepickerfromlocalmangoindustrystakeholdersispositive,butpickerisviewed
as“stuck”becauseindustryhasbeenawareofitforseveralyearsbutitisnotyetwidelyavailable
• Severalprototypeshavebeensoldtofarmerswhowereinvolvinginthetesting
CHALLENGESANDLESSONSLEARNED
ü Difficulttofindafabricatorcapableofmakingbladesthatmaintainasharpedge.ü Considerabledelaysduetowaitingforfundingandfacultyavailabilityforresearch.ü Theresearchteamdoesnotyethaveaconcretebackupplantofundcommercializationifitisnotgranted
PCAARRDfollow-upfunding.OnepossibilitymaybefundingfromtheUniversity’sresearchandextensiondivision.Anotherisaformerstudentwhoisnowafabricatorandhasexpressedsomeinterest.Theteamisinterestedinidentifyingpotentialinvestors,butdoesnotknowhow.
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proactiveabouttrackingcompletedresearchandidentifyingtechnologiesfortransfer.
NopermanentformalmechanismexiststhroughwhichuniversityresearcherscaninformtheDAorPCAARRDofmatureresearchornewtechnologiesthatarereadytobesharedwithusers.Instead,thisprocessdependsontheresearcher’sconnectionsandentrepreneurialism.OneresearcherreportedthathesubmitsaletterdescribinghistechnologysignedbyhisdepartmentheadtotheappropriatepersonintheDA.SomeuniversitieshaveoraredevelopingKnowledgeandTechnologyTransferOffices(KTTOs)thatcansupportthistransitionbothtogovernmentagenciesandexternally.
BothPCAARRDandDA-BARrequirethattechnologiesadvancebeyondthedevelopmentphaseandbepilottestedbeforetheyareconsideredeligibleforthedisseminationortechnologytransfersupporttheyoffer.However,severalintervieweesnoteddifficultyinaccessingfundingforpilot-stagetesting.Additionally,someindicatedthatresearchersdevelopingtechnologiesdonotwanttopilottestortohanditofffortechnologytransfersupport,insteadpreferringtocontinueiteratingonthedevelopmentofthetechnologyitself.
Insomecases,thetransitionstartsviaasocialpathwayandbecomescommercialafteramarketisgenerated.Forexample,thebiofertilizerdevelopedbyUPLBforsmallholderswillbemanufacturedbytheuniversity,andthegovernmentwillpurchaseanddistributeittofarmers.Doingsocouldhelptopopularizeatechnologyanddemonstrateitsmarketability,andthus,downtheline,aprivateactormaylicensethetechnologyandstartproducingitforsale.
OthersocialpathwayscanincludeNGOactors,foundations,andinternationaldonorsseekingtosupportsmallholderaccesstotechnology.Basedonourinterviews,noneoftheseactorsaresignificantsourcesoftechnologytransitioninthePhilippines.
COMMERCIALPATHWAYS
Commercialpathwaysarechannelsthroughwhichinnovators(academe,entrepreneurs,privatecompanies,orthegovernment)transitionnewlydevelopedtechnologiesfromtheR&Dstagesothattheymaybesoldtousers.Whereassocialpathwaysincludeknowledgetransfer,commercialpathwaysaregenerallyspecifictotechnologiesthatcanbesoldratherthanresearchonagriculturalpractices.Commercialpathwaysincludetechnologylicensing,spinoffcompanies,andstartups.9Foraprivate
9Forthepurposesofthisreport,weconsiderastartuptobeayoungbusinessbasedonanewbusinessmodelortechnologicalinnovation.Agriculturalmicroenterprises(e.g.,inputdealersandtraders)thatusetraditionalbusinessmodelsandexistingtechnologies,howeveryoungorentrepreneurial,arenotconsideredstartups.
FindingSomeresearchisstalledatthetestingphase,duetounavailabilityofsecond-
phasefunding.
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companyconductingin-houseR&Dfornewproductdevelopment,noseparatepathwayisneeded,althoughsomesteps,suchaspatentsornewproductregistration,areoftenrequired.
TechnologiesdevelopedviauniversityresearchcanbecommercializediftheuniversityacquiresIPrightstothetechnologyandeitherlicensesittoanoutsidecompanyorestablishesaspinoffcompanytowhichtheIPistransferred.Inourinterviews,weencounteredveryfewuniversity-developedagriculturalinnovationsthathadbeensuccessfullycommercialized.However,anotableshifthasoccurredinuniversities’andfunders’desirestocommercializetechnologies:Manyintervieweesdescribedneworconception-stageprogramsandpoliciestosupportcommercialization.Theseinitiativesareallbasedonthecommonunderstandingthatuniversitieslackthecapacityforcommercialization.
SomeintervieweesidentifiedaneedfortrainingscientistsinentrepreneurshipandIPprocesses;othersthoughtthatbecausebeinganentrepreneurisoutsidethetraditionalskillsetandjobdescriptionforresearchers,universitiesshouldhireadditionalmarketingstafforestablishcommercializationcenterstomanagethisprocess.Oneuniversitybiologisttoldus,“Theuniversitywon’tallowmetomakemyappavailableordemothetechnologyuntilIgetapatent.ButIdon’tunderstandthepatentpaperwork,orwhichpartsoftheresearcharepatentable.Theprocesshasbeenverytimeconsuming.”MomentumexistswithinuniversitiestoprovidesupporttoresearchersaroundIPandpatents.InadditiontoimplementingIPpolicies,universitiesaretrainingstaffandfacultyonpatentsearchingandconductingseminarstointroducefacultytoIPbecause“itisnotnaturallypartoftheirmindset.”ManyuniversitiesnowhostabranchoftheInnovationandTechnologySupportOffice,undertheauspicesoftheIntellectualPropertyOfficeofthePhilippines(IPOPHL).
AnotherexampleofemergingsupportforcommercializationisUPLB’snewlydeveloped“OneBiotech”concept.ThisisplannedtobeacompanywithinUPLBthatisresponsibleforcommercializingalltechnologiesdevelopedthroughUPbiotech;thus,thefacultywouldnotbetaskedwiththemarketingside(althoughtheywillretainequity).Implementingthisconceptwouldalsoshortenthelicensingprocess.Currently,36technologiesthathavebeendeemedrelevantfortheagriculturesectorandmarketreadyare“linedup.”OneBiotech,likeotherinitiativestosupportcommercialization,remainsintheplanningphase.Indeed,althoughthesituationischanging,anoverrelianceonfacultyentrepreneurshipfortechnologycommercializationstillseemstopersist.
Mostintervieweesmentionedthatitremainsdifficulttosetupaspinofffromauniversity.Aresearchermustgoallthewayupthroughthepresidentandchancellortoobtainpermissionforcommercialization,
FindingUniversitiesandfundersdemonstratesubstantial
momentumandcommitmenttowardimprovingtechnologycommercialization.
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whichisadisincentiveforinnovation.Itissimilarlydifficulttolicenseatechnologytoprivateagribusiness;severalintervieweesnotedthatagribusinessesareoftendiscouragedbytheslowspeedandbureaucracyofuniversities.Partofthedelayorhesitancecouldberelatedtoalackofunderstandingofthevariousoptionsforcommercialization.OneDArepresentativetoldus,“Privatecompanieswanttobuyinnovationsfromtheuniversity—theproblemistheprocessitself.Universitiesareweakatidentifyingbusinessopportunities.”Industrymistrustisalsoafactoratthisstage.Oneintervieweenotedanexampleofalargeinputcompanyinterestedinpurchasingtherightstoauniversity-developedfertilizer;however,theinventordidnottrustthecompany,andthus,thesaledidnotgothrough.Weheardsubstantialfrustrationfrombusinesseswhohadtriedtolicenseagriculturaltechnologiesfromauniversitybutfailed:“UPLBdoesrecordbreakingstuff.Buttheirmandateistogivetechnologiesawayforfree—theymakeitveryhardfortheprivatesectortogetinvolved.It’sfastertosourcetechnologiesfromabroadthantotrytogetthemfromUPLB.”
Further,wenotedverylittleinformationflowfromuniversitiestoindustry—thatis,whenresearcherspublishresearchordevelopanewtechnology,itisveryunlikelythatindustrywillknowaboutit.Universitiesrarelyhavecommunicationsormediastrategiesdesignedtoinformagribusinessesaboutnewdevelopments.Additionally,conferencesaretypicallysiloed:Academicconferencesandindustryeventsexist,buttheyrarelyoverlap.Asoneindustryassociationputit,“We’dliketostayabreastofnewresearch,butitseemslikescientistsjustproduceresearchandshelveit.”One-offexamplesofbusinessesstayingconnectedtouniversitiesusuallyoriginatedthroughalumniorweretheresultofindividualswhowereparticularlydedicatedtosupportingtheuniversitiesorsourcingproductslocally.Thisisanotherphaseinwhichdirectlinkagesbetweenbusinessanduniversitieswouldstrengthentheecosystem.Newspapers,amajorsourceofagriculturaltechnologyinformation,couldbeanappropriatechannelforthis.
OurresearchalsoexploredhowtheprivatesectorcantransitionnewtechnologiesfromtheR&Dphasetomarket.Onefrequentlycitedfrustrationwastheprocessofregisteringand/orcertifyingnewagriculturalinputs,particularlypesticides.Approximately5yearsarerequiredtoregisteranewproduct.Thisisprimarilybecausenewpesticidesmustundergofieldtrialslocallywithanaccreditedexternalevaluator,andcompaniesmustworkthroughtheFertilizerandPesticideAuthority(FPA).Thetrialitselfisnotthebottleneck;rather,theFPAlacksmanpower,successionplans,automatedsystems,andincentives.OneintervieweealsonotedthattheFPAmusthiresubjectmatterexperts,usuallyretiredscientists,toreviewpermitapplications,buttheseexpertsarepoorlycompensatedandhavenoincentivetomovequickly.For
FindingTheprivatesectorisrarely
awareofuniversityresearchadvancements.
FindingRegisteringnewinputs,suchasfertilizersandpesticides,isslowinthePhilippinesandcandeter
innovation.
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INNOVATIONBRIEF
GreenEnviroManagementSystem(GEMS)Team:Dr.EvelynTaboada,DeanoftheSchoolofEngineeringandProfessorofChemicalEngineeringattheUniversityofSanCarlos(USC)
IdentificationofNeedUniversityprioritizedresearchthatsolvedlocalproblems.InCebu,amajorissueisthelargevolumeofdiscardedmangoseedsandskinsthatcontributestourbanwastemanagementproblems.
GenerateandTestInnovationFunding:
• Dr.TaboadareceivedseedfundingfromUSCtobeginresearchonhigh-valueproductsthatcanbegeneratedfrommangowaste.
Facilities:• USCalsoinvestedinagaschromatographymassspectrometryinstrumenttoidentifythedifferent
substanceswithinmangowaste,recognizingthattheexpensiveequipmentcouldbeusedformultipleprojectsinthefuture.
Research:• Mangoflour,whichisglutenfreeandmorenutritiousthanwheatflour,wasidentifiedasan
opportunityforvalueaddition.Becausemangoflourhasatarttaste,Dr.Taboada’steamhashavecreatedmixtureswithotherflours,includingcassavaandcoconut.Theyalsoproducedmangotea,briquettes,andanimalfeed.
TransitionOutofResearch:CommercialPathwayIntellectualProperty:
• FiledpatentapplicationsthroughUSC’sinformationservicetechnologyoffice• Incorporatedthebusiness;USCretainedashareofthecompany
Investment:• Identifiedpotentialinvestorsthroughpersonal/universitynetwork,whichexistedduetofrequent
collaborationswithindustry• Choseoneofseveralinterestedinvestorstofinancetheconstructionofafactory
IntroduceInnovationtoUsersIdentifiedprimarybuyer(CityofJohannesburg),whichwantstobuyasmuchmangoflourasGEMScanproduce.Currentlylookingforadditionalbuyerstoexpandconsumerbase.
InnovationUsedtoUpgradeOperationsTheCityofJohannesburgusesthemangoflouraspartofabakingskillsdevelopmentprogram.GEMScontinuestoinnovate,testingdifferentmangoflourmixesandrecipes.
CHALLENGESANDLESSONSLEARNED
Dr.Taboadaisunusualamongscientists;sheholdsamaster’sdegreeinintellectualpropertylawandisinnatelyentrepreneurial,ararecombinationofcapacities.TheearlysuccessofGEMSisnotlikelytobereplicatedexactlywithouther.Instead,supportservicesshouldbeavailablesoscientistsarenotrequiredtobeexpertsinintellectualpropertylaw,entrepreneurialism,andfactorydesignfortheirinnovationstobecommercialized.
USCiswell-connectedtoindustry,whicheasedtheprocessoffindinginvestors.Thisisalsorare.Dr.Taboadaattributesthistotheuniversity’sstreamlinedbureaucracy,whichmakesprivate-sectorengagementmuchlesscumbersomeandtimeconsumingthanforpublicuniversities.Additionally,becauseofitsreligiousaffiliation,theuniversitytakesitsextensionandcommunityengagementmandateveryseriouslyandthereforehasalotofexperienceengagingtheprivatesector.
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companiesintroducinggenericordifferentbrandsofapprovedactiveingredientsratherthannewmolecules,theregistrationprocesshasfewerbottlenecksbutisstillexpensiveandcandeternewmarketentrantsanddiscourageinnovation.Theprocessforfertilizerapprovalsisalsofaster.Oneinputdealernotedthattheprocesscanbeexpeditedviabackchanneling.Additionally,intervieweesfromtheprivatesectormentionedthatthePhilippineshasnotupdateditsagrochemicallaws,whichpreventssomenew,organicproductsfrombeingusedinthecountry.Thelegislationcontainsoutdatedlanguageand“thereisnomomentumintheFPA”tomakeanychanges.10Oneagrochemicalcompanynotedthattheannualprocessandcostsofcertifyingaproductorganicareprohibitiveandcannotberecoupedbychargingapremium.Indeed,itismuchcheapertoregisterasyntheticproduct.
NewfoodproductdevelopmentisconstrainedbyFoodandDrugAdministration(FDA)requirementsforregisteringnewproducts,whichare,likethoseoftheFPA,viewedasanachronisticandslow.Intervieweesindicatedthatregistrationrequirementsareallinpapercopyratherthanonlineandthatnewproductregistrationreportedlytakesupwardsof6months,muchlongerthanthe2weeksrequiredinThailand.However,theFDAhasrecentlyupgradedtoelectronicregistrationforallnewproductsclassifiedaslowriskandhasplanstoexpandthisfeaturetoallproductsbytheendoftheyear.TheFDAestimatesthate-registrationhasreducedthetotaltimerequiredfrom114daysto53days.
Independententrepreneursandinnovatorswhohavedevelopednewtechnologiesandseektocommercializethemvialaunchingastartupcompanyareunlikelytohavetransitionsupportprovidedbyauniversityorlargecompany.SeveralincubatorandacceleratorprogramssupporttheFilipinostartupcommunity,althoughweencounterednonefocusedspecificallyonfoodandagriculture.Acrossallsectors,thereisaneedforstartupservices,includingbasicaccountingandlegalsupport,butwithoutaccesstoaformalincubationoraccelerationprogram,startupshaveadifficulttimefindingtheseservices.UniversityresearcherswithDOSTfundingmayreceivesupportliketheservicesofferedbyincubators:TheDOSTofferstrainingonpitchingandbusinessplandevelopment,holdspitchingdayswithangelsandventurecapitalists,andsupportsproductregistration.Insomecases,theDOSTsupportstheestablishmentofincubatorswithinuniversities;forexample,theUniversityofSanCarlosisapplyingtobecomeanincubatorforengineeringinfood,energy,andwaste,andUPLBabiotechnologyincubator.
10WeconductedoneinterviewwithanadministrativeofficerattheFPAwhodidnotcommentonthesefindings.Higher-levelofficialsattheFPAexplicitlydeclinedtoparticipateinourstudy.
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Onecriticalfactorforthesuccessofstartups(and,inmostcases,thatofuniversityspinoffs)istheavailabilityofinvestors,includingangelsandventurecapitalists,whichisgenerallyperceivedtobeadequateinthePhilippines.However,intervieweesrepeatedlynotedthatinvestors(andotherstartupservices)aremoreaccessibleinMetroManilaandthatforagriculturestartups,whicharemorelikelytocomefromoutsideofManila,thiscanbeachallenge,asdescribedintheinnovationbriefbelow.
Further,Filipinoinvestorstendtobelesstech-savvyand“startupminded”thantheangelinvestorsintheglobaltechnologycommunity.Theyaremoretraditionalinvestorsandarelessaccustomedtothehigh-risknatureandideaofinvestinginteams.Fortech,thereisaneedtoeducateinvestorsandweanthemfromthistraditionalmindset;however,foragricultureandfood,thisrepresentsanopportunity.Evenhigh-techagriculturalinnovations,suchasappsandsensors,canbeunderstoodbyinvestorsbecausetheysupporttheproductionoffood,whichisafamiliarandrelativelystablemarket.Onerespondentthoughtthatagri-foodstartupswouldbemoretangibleand,therefore,attractivetotheFilipinoinvestorsthansoftwareormoredigitizedorsocialnetwork-basedideas.
However,startupsmaystillencounterdifficultiesinfindingtherightinvestors.SeveralinvestornetworksexistinmetroManilathatentrepreneurscantapintoiftheyareawareofthem.OneintervieweenotedthatinCebu,nogoodinvestornetworkisinplace,soalthoughgrowinginterestinfoodisemergingamonginvestors,itremainsdifficultforinnovatorstofindwell-alignedinvestorsandviceversawithoutapersonalconnection.Incubationandaccelerationservices,whichtypicallyhelpstartupsconnectwithinvestorsatearlystages,mostlysupportinformationtechnologystartups.
Oneoptionforfinancingagribusinessesisimpactinvestors.ThePhilippineslagsothercountries,suchasIndia,intheimpactinvestingspace,butsomeareavailableinManila.Impactinvestorstypicallyfundestablishedbusinessesratherthanidea-stagestartups.Additionally,itisdifficultforthemtoconnectwithagribusinesseslocatedintheprovinces,andviceversa.
FindingAgriculturalstartupsoutsideofManilahavedifficultyaccessinginvestorsandstartup
services.
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INNOVATIONBRIEF
CloudFarmRemoteSensorsDavaoCity-basedstartuplaunchedbyrecentengineeringgraduatesoftheUniversityofSoutheasternPhilippines(USEP)
IdentificationofNeed• Studentswereinterestedbecauseoffamilyconnectionstofarming.• Throughconsultationwithcommercial-scalefarmers,theyidentifiedaneedanddecidedto
designaremoteheatstressanalyzer.Similartechnologiesareavailableoverseas,butdon’tfunctionwellinremoteareasinthePhilippines.
GenerateandTestInnovationFunding:
• Ideaspace’sannualstartupacceleratorcompetitionselectedCloudFarmasoneof10startupstobeawardedsupportintheformofofficespace,legaladvice,ascholarshiptotheAsianInstituteofManagement,andapproximatelyUS$60,000instartupcapital.
Research:• CloudFarmexpandedtheremotesensingunitstomonitorformoistureinthesoilandair,
light,pHbalance,andnutrientcontent,allowingfarmerstorespondquicklytochangingagronomicconditionsandtracktrendsovertime.Thesolar-poweredsensoruploadsdatatoanandroid-basedapplication.Itcoversarangeofonetotwohectares,buttheteamisworkingtoexpanditusinglow-costsatellitesensors.
Testing:• CloudFarmhasmanufacturedandtestedprototypesusingalocalmanufacturerandhas
beensatisfiedwiththequality.TheyhavetestedthetechnologywiththeBureauofPlantIndustry(BPI)andhavedonefarmtrialsonUSEP’sMabinicampus.ThetestsatBPIshowedthattheremotesensingunitincreasesyieldsinagreenhouseby6%,butCloudFarmexpectsthistobesignificantlyhigheronfarmswhereagronomicparametersaremorevariable.Additionaltestsareplanned.
TransitionOutofResearch:CommercialPathway• CloudFarmhasregisteredasabusinessandhasapatentpendingonthesensortechnology.
BecauseIdeaspaceprovidedapatentattorney,thepatentapplicationprocesshasbeenrelativelysimpleforCloudFarm.
• CurrentlyCloudFarmlacksthecapitalnecessarytoreachcommercialscale.Itsmostlikelysourceofscale-upfundingistheDepartmentofScienceandTechnology openwindowforfundingforcommercialization.Ithasalsohadsomeinterestfromoneangelinvestor,oneinputcompany,andtheBureauofAgriculturalStatistics,butnoinvestmenthasmaterialized.TheyarenotawareofangelinvestorsinDavao.
CHALLENGESANDLESSONSLEARNED
ü Startupincubatorandacceleratorservicesprovidevaluablesupportforinnovation,butlackofnext-phasecapitalremainsachallenge,particularlyoutsideManila.
ü Marketresearchisessentialearlyintheinnovationprocess.CloudFarmisuncertainaboutthedomesticmarketsizeforsuchahigh-techagricultureproduct.Evenrelativelywealthierfarmersarenoteasilyconvincedofthesensor’sbenefitsrelativetocosts.Becauseofthis,CloudFarmisexploringdevelopingalowercostalternative.
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4. INNOVATIONINTRODUCEDTOUSERS
OnceaninnovationhasbeensuccessfullytransitionedfromtheR&Dphaseandisreadyforuse,itmustbeintroducedtotheusersforwhomitwasdeveloped.Thisintroductioncanoccurviaprivatesectorpromotion,publicationandinformationsharing,oragriculturalextension.ThisstageisparticularlycomplexintheagriculturesectorbecauseoftheheavyinvolvementofpublicagriculturalextensionservicesandthewidedispersionofFilipinofarmers.
Theagriculturalextensionsystemistheprocessthroughwhichtrainedagriculturalextensionagentsprovidetraininganddemonstrationtofarmersonagriculturaltechnologies,practices,andagriculturalenterprisemanagement.Thespecificservicesdeliveredbyanextensionagentvarywidelybyregionandagentandmayalsoincludecommercializationordistributionoftechnologiesatalocallevel.OurobjectiveisnottothoroughlyassessthePhilippines’agriculturalextensionsystem.Rather,inthissection,weprovideabriefintroductiontohowagriculturalextensionfitswithinthegreaterinnovationecosystem,highlightinginsightselicitedfromourinterviews.
InthePhilippines,acomplexwebofactorsandrelationshipsexistsinagriculturalextension(Figure5).
Figure 5. Technology Transfer Actors in the Agricultural Extension System
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Philippinedevolutionin1991assignedresponsibilityforagriculturalextensiontoLocalGovernmentUnits(LGUs).LGUsimplementextensionatprovincialandmunicipallevelsandaresupportedatnationalandregionallevelsbytheDAbutareprimarilyfundedwithlocaltaxes.WithintheDA,theATIisresponsiblefordeliveringtrainingsoftrainers(TOTs)toLGUextensionstaff,whothendelivertrainingtofarmers;however,theLGUsarenotactuallyaccountabletotheATI.ATIalsoprovidessomeprogramfundingtoLGUs,whichcoverslogisticsandothernon-salarycosts.Otheragencies,includingtheDTIandDepartmentofAgrarianReform,alsoconductsomeextensionactivities.Thismultiplicityofplayersinvolvedinextensionwascitedascausingconfusionwhentransitioningtechnologiesintotheextensionsystem.
LGUagriculturalextensionservicesaregenerallyrecognizedasweakbecauseofdevolution,asdocumentedinseveralpublications(Ocenar,Brillantes,Cuthbertson,&Tumanut,2004;Saz,2007)andreflectedinourinterviews.Onechallengeisthelackofoperationalandtravelfunding,whichpreventsextensionagentsfromleavingtheoffice.Moreimportantly,devolutionhasisolatedagriculturalextensionoffices,weakeningtheirconnectionstonationalresearchsystems(Saliot,2006.)
SomeprominentmodalitiesforcascadingagriculturalresearchandtechnologiestofarmersareoutlinedinTable3.Intheory,thesemodalitiesalsoservetoidentifyfarmer-developedinnovationsandneedsforresearch,althoughweencounteredlittleevidencethatthisoccurs.
Table 3. Extension Modalities in the Philippines
Farmer Scientist Training Program/Science & Technology-based Farms
• Farmer scientists nominated by LGUs and local universities receive inputs and training on new innovations.
• Farmer scientists demonstrate new technologies to other farmers but do not distribute or sell them; other farmers must ask the DA or LGUs how to obtain the technology, which may or may not be available.
• This program was developed by PCAARRD and transferred to the DA. • One interviewee indicated this program is being scaled back, and another stated
that it has evolved into community-based demonstration farms. Farmer Information and Technology Service (FITS) centers
• These centers are in municipal agricultural offices in village centers. • They house information, manuals, and computers for farmer use. • Over 800 exist across the Philippines.
PCAARRD Regional Consortia
• Fourteen regional consortia exist and include SUCs, LGU, and NGO collaborators.
• They serve as a mechanism to conduct and disseminate research at the regional level.
FindingThecomplexityoftheagriculturalextensionsystemimpedesthetransferofnew
technologiesandresearch.
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ResearchpertainingtopracticesratherthantechnologiesisapprovedbyPCAARRDforpublicsectordisseminationandthendisseminatedattheregionallevelthroughLGUconsortiamembers.Mostrespondentsindicatedthatitisgenerallyuncommonfortheprivatesectortoaccessresearchresultsfromuniversitiesorgovernmentagencies.OnemangogrowernotedthattheNMRDChadconductedanexpensivestudyonmangostrains,buteveniffarmerswereawareoftheresearch,theycannotaccessitwithouttravelingtoGuimaras.
Intheprivatesector,becausestrongincentivestointroducetheirtechnologytousersexist,theprocesstendstobemoresuccessful.Largecompanieshaveexistingdistributionnetworksforsellingseedlings,fertilizers,andpesticides,andthus,whenanewproductisavailable,introducingitviathatnetworkisgenerallyaseamlessprocess.Somecompaniesmayopttoworkthroughthepublicextensionsystemtointroducetheirtechnologiestofarmers.Insomecases,PCAARRDpursuesextensionandcommercializationsimultaneously;introducingtechnologiesthroughextensioncangeneratetractionandbuildamarketforaproduct,makingitscommercializationmoreattractivetoprivatecompanies.
FindingTheprivatesectorrarelyaccessesuniversityorgovernmentresearch.
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5. INNOVATIONUSEDTOUPGRADEOPERATIONS
Thefinalrequirementforaninnovationtohaveimpactisthatitmustbeusedbyfarmersorprivateagribusinessestoupgradeoperations.Simplyintroducingitisnotsufficient.Inthissection,weprovideanoverviewofthemainactorsintheecosystemthatuseinnovations.Notingthattheseactorsfeeddirectlybackintothefirstphase—identifyinganeedforinnovation—wealsodiscussthetypesofinnovationseachactordemands.
Foodcompaniescanalsobeusersofinnovationaroundprocessing,packaging,andwasterelatedtoagriculturalproducts,althoughmostinnovationisconductedin-house.LargemultinationalfoodcompaniesintroducenewproductsinthePhilippinesbasedonlocalmarketresearch.Thesenewproductsaredevelopedthroughin-houseR&D,whichmayhappenabroad.OnelocalcompanynotedtheneedtosourceexpertiseandequipmentfromEuropetoproducehigher-qualitychocolateinthePhilippinesbecausetheequipmentavailablelocallyisinadequate.Inthecoffeesector,similardissatisfactionexistedwithlocalmachinery,whichisprimarilymadeforRobustaonlyandbreakswhenusedonlargerbeans.Oneindustryassociationnotedthatitsmemberswouldbeunlikelytoprioritizespendingmoneyonresearch,althoughtheymaybewillingtoinvestinsuchtechnologiesiftheywereavailableandcouldincreaseyields.
Large-scalefarmsareuncommoninthemango,cacao,andcoffeevaluechains.Contractandmanagedfarmsrunbylargebuyersmayhavetheirownagronomists,andatleastonehasitsownresearchanddemonstrationfarmthatcollaborateswithauniversityondiseaseresearch.Thesefarmsaremoreactiveinthepursuitofinnovationandaregenerallymorelikelytousenewtechnologiesandadoptresearch-basedpractices.
Smallholderfarmersconstitutemostprimaryproducersofcacao,coffee,andmangointhePhilippines.Thesefarmersusuallyhaveminimalcapitaltoinvestinnewtechnologiesandare,therefore,rarelyactiveinthepursuitofinnovation.Indeed,mostusetraditionalpractices.Smallholderadoptionofknownproductivity-enhancingtechnologiesthatarealreadyutilizedbylargerfarmersislow.Forexample,only35and45percentofmangogrowershaveadoptedfertilizerandpruningpractices,respectively,(Buguis,n.d.).Thelowtechnologyadoptionratesofsmallholderfarmersconstituteapriorityissuearoundthedevelopingworldandhavebeenthoroughlyresearched.Lowadoptiondoesnotnecessarilyimplylowdemandforbettertechnologies.Instead,inmostcases,lowadoptioncanbeexplainedbyfarmers’constrainedaccessto
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information,finance,inputoroutputmarkets,labormarketinefficiencies,riskpreferencesandexposure,orlandrights(Jack,2013).
Therefore,asnotedbymanyinterviewees,theextensionofexistingand,insomecases,basictechnologiesismoreimportantforsmallholdersthanthedevelopmentofnew,moreadvancedinnovations.Thus,manyusefulinnovationshavebeendevelopedbuthavefailedtoreachthefinalstep(s)oftheprocessorremaininaccessibletofarmersbecauseofhighcostsorpoordistribution.Inseveralinterviews,Filipinofarmersweredescribedastraditional,riskaverse,oreven“emotional”andresistanttochangeand,therefore,slowtoinnovateoradoptinnovations.
FindingForsmallholderfarmers,accesstoexisting,basictechnologiesismoreimportantthanthe
developmentofnew,moreadvancedinnovations.
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KeyFindingsandRecommendations
Thissectiondiscussessomeofthekeycross-cuttingfindingsoftheagribusinessinnovationecosystemassessment.Overall,thefindingsindicatebothpositivemomentumandstronguniversitycapacityandgovernmentsupportforagriculturalresearchandinnovation.Wereiteratethatthesefindingsrepresentstakeholderopinionsoftheagribusinessinnovationecosystemratherthananauthoritativediagnostic.Thisreportisintendedtoprovokediscussionamonginterestedstakeholdersandprovidetheopportunityforopendialog.Below,weoutlinekeyfindingsandassociatedrecommendationsforfosteringthedevelopmentanddiffusionofagriculturalinnovationsthatcanleadtoinclusivegrowth.
Universitiesandgovernmentresearchfundersdemonstrate
substantialmomentumfortheadoptionofpro-commercializationpractices.
Manyintervieweesnotedprogressorindicatorsofmomentumrelatedtomovingresearchandtechnologies“offtheshelves”andintothehandsofusers.Heightenedawarenessoftheimportanceoftechnologytransferexists,althoughitmaynothavefullypermeatedtheecosystem.AttheDOST,thisawarenessisevidencedbythepassageofnewIPpoliciesin2015,whichincludeatechnologytransferprotocolforuniversitiesreceivingDOSTfunding.Additionally,theDOSTisproactiveinidentifyingtechnologiesreadyforspinoffandworkingwithresearcherstodevelopbusinessplansandidentifyinvestors.AsofMarch2016,noneofthesetechnologieshadsuccessfullyspunoff;however,theeffortisclearlyindicativeofmomentumandinterestincommercializationfromoneoftheprincipalfundersofagriculturalresearch.TheDOSTisalsoworkingwithLANDBANKtofacilitatelowerratesonstartuploansandisactiveinrequiringevidenceofmarketdemandforatechnologybeforereleasingresearchfunds.
Wealsonotedseveraluniversity-ledinitiativesinthepipelineorplanningphasestorampupcommercialization.TheseinitiativesprimarilyoccurredintheformofcapacitybuildingforuniversityfacultystaffinentrepreneurshipandIP,thedevelopmentofIPpolicies,andtheprovisionofcentralizedsupportservicesthroughtheuniversityformarketingandlegalsupport,includingKTTOs.Severaluniversityactorsmentionedthattheyaretryingtoincreaseexposuretoindustry.
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Theseemergentpolicies—or,insomecases,early-stageideas—areinchoate,andtherefore,theresearchteamcouldassesswhethertheyarecontributingpositivelytotheecosystem.However,theynotedastrongawarenessoftheneedforchangeandstepsintherightdirection.
Recommendations:Fundersanduniversitiesshouldseekcomprehensivefeedbackonnewprogramsandpoliciesfromstakeholdersandstrivetocontinuouslyadaptandimprovethem.Privatesectorinputshouldbeincorporatedwhenpossible.Initiativesaimedatimprovingcommercializationshouldnotrelytooheavilyononesolution—forexample,facultyentrepreneurshiporanIPpolicy—butshouldinsteadseeksolutionsfromvariousecosystemcomponents.
Theintrinsicmindsetthatagriculturalinnovationsarepublicgoodscan
ultimatelyhinderusers’abilitiestoaccessthoseinnovations.
Publicinstitutionsinvolvedinthegenerationofagriculturaltechnologiesaretypicallyfoundedwithamissiontopromoteagriculturalproductivityandhelppoorfarmers.Thisisaworthymissionandhasundoubtedlyresultedindepartmentsofagricultureanduniversitiesworldwidecontributingtoagriculturalgrowth.However,thisethosandtheunderlyingdesireforsocialbenefitcanalsoconstraintechnologytransfer.
Weencounteredthistensionateverystagealongthepathway.Somefacultyavoidcommercializingtechnologiesbecausedoingsoconflictswiththeirmission.Mostnotably,instage3—alreadythemostcriticalandcomplicatedstage—whetheratechnologyshouldbesocialorcommercialmustbedetermined,butnoclearcriteriaorevenauthoritytodosoexists.Further,evenifatechnologyisfollowingthecommercialpathway,myriadapprovallevelsarepresentinpublicuniversities,andeachoneisanopportunityforadifferentuniversityofficialtostopandask,“Wait,doesn’tsellingthistoacompanyforprofitconflictwithourmission?”Thiscandelayandcomplicatewhatisalreadyalengthyprocess.
Manytechnologiesareclassifiedassocialandpushedoutviatheextensionsystemoruniversitiesdirectly;thisisoftenthebestchoice.However,becauseofthelackofincentivesintheextensionsystem,thesetechnologiesmaynotbedisseminatedaswidelyascommercializedones.
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Recommendations:
Universitiesandfundingagenciesshouldclarifywhoisresponsibleforclassifyingatechnologyassocialorcommercialandthecriteriaforclassification.Thisshouldbedoneasearlyintheresearchprocessaspossibleandcommunicatedwidely.Universitiesshouldcontinueeffortstoward“sensitizing”facultytowardcommercialization,buildingentrepreneurialism,andcommunicatingthemessagethat,inmanycases,technologiesaremorelikelytoreachfarmersthroughtheprivatesector.
Theextensionsystemsuffersfromseveralchallenges,aspreviouslydiscussed,andthus,incentivesaloneareunlikelytoimproveitsperformance.Inanyextensionreform,however,incentivesshouldbecarefullyconsidered;severalrecentexperimentalstudiesindicatetheirpositiveeffectsonfarmeradoptionoftechnologiesandpractices.Incentivesdonotnecessarilyhavetobemonetary;infact,monitoringandfarmerfeedbackarealsoeffectivemechanisms(Masset&Haddad,2014;Jones&Kondylis,2015).
Weakrelationshipsbetweenacademeandagribusinesshinder
innovation.
Academe-industryrelationshipsthroughoutallfivestagesarevitalinafunctioninginnovationecosystem.Whenuniversitiesandagribusinessesarewellconnected,researchersunderstandindustry’sneedsforinnovationandcanproducemarketabletechnologies,andindustryisawareofuniversityinnovations,drawsonuniversityexpertise,andcanbringtechnologiestomarketwhentheyareready.Mostrespondentsnotedweakrelationshipsbetweenacademeandtheprivatesector–echoingafindingintheoriginalinnovationecosystemstudy.Researchersrelyontheirprimarysourcesoffunding—PCAARRDandDA-BAR—tocommunicatewithindustryandsetresearchpriorities.Althoughthisprocessfunctions,itdetersthedevelopmentofmoredirectrelationships,limitingopportunitiesfortwo-wayexchange.
Ø Limitedinformationonuniversityagriculturalexpertise,research
andinnovationsispublicallyaccessible.
Privateagribusinessesoftencannotidentifyacademicexpertsintechnicalareasthatcouldaddvaluetheirbusiness.Onemanufacturernotedatechnicalissueregardingpreservativeapplicationbutdidnotknowtheindividualswithinauniversitythatshouldbecontactedaboutasolution.Thisislargelybecauseofpooruniversitywebsitesthatfailtodetailtheexpertiseandresearchaccomplishmentsoftheirfaculty,althoughvariationinqualityandthelevelofdetailexistacrossdifferent
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universitiesanddepartments.Evenatthedepartmentlevel,someprogramsdonotprovideinformationontheirspecialtiesandachievements.Further,universitiesoftenhavepoorinternalinformationsharing.
Weencounterednoregularorsystematizedplatformsforuniversity-industryknowledgesharingorengagementaroundagriculture.Selectedindustrystakeholdersareinvolvedinsettingtheresearchagenda,butthisinvolvementdoesnotincludeanydirectcontactorrelationshipbuildingbetweenindustryandacademe.Universitiesalsodonotprioritizemainstreamorindustry-targeteddisseminationofresearch.Facultyrelyonacademicpublicationstopromotetheirwork,whicharenottypicallyreadbyanyoneoutsideofthespecificfield.SomeuniversitiesareintheprocessofdevelopingKTTOs(somewithsupportfromSTRIDE),whichcanbeusedtoaddressthisdisconnect,butwedidnotencounteranythatarealreadydoingsoforagriculture.Similarly,fundingagenciesdonotconsistentlypublicizeresearchtheyhavefundedthatisreadyfortechnologytransferonline.Instead,suchresearchseemstobepublishedonanad-hocbasis.
Ø Academicexpertiseisoftenperceivedasnotrelevanttoprivate
agribusiness,andthereismutualmistrustbetweenindustryand
academe.
STRIDE’s2014assessmentfoundthatwidespreadmutualdistrustbetweenuniversitiesandindustryintroducedfrictionintotheecosystem.Severalintervieweesvalidatedthisfindingintheagriculturesector;someagribusinesses,evensmallcompanieswhomightbenefitfromlocalexpertise,arereluctanttocollaboratewithuniversityexpertsforfearthattheirsecretsmightbesharedwithcompetitors.ConfusionaboutIPownershipalsoexists,withbothsidesbeinghesitanttoembarkonajointresearchprojectbecauseofconcernsaboutwhowillhaveownershipoftheproductorpatent.Privatesectorpartnersareoftenalsodeterredbytheslow,bureaucraticprocesseswithinuniversities.Partlybecauseoftheabovelackofinformationsharing,privateagribusinessmayassumethatacademicexpertiseisnotrelevant.
Ø Universitysystemsforfacultyconsultingarrangementsdonot
facilitateinstitutionalrelationships.
Consultingassignmentscanservetobolsteruniversityresearchers’connectionstoindustryandunderstandingofindustryneedswhilesupplementingtheirsalaries.Mostintervieweesontheuniversitysidewereawareofatleastsomeinstancesoffacultyengaginginconsultingworkforagribusinesses.However,theconsultingassignmentsarenotusuallymadethroughtheuniversity,whichisacceptablesolongasthe
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consultingdoesnotoccuronuniversitytime.Formalizingconsultingassignmentsthroughtheuniversityisviewedasunnecessarilybureaucraticandcumbersomeandis,therefore,avoided.Consulting“sidearrangements”arealsoanissueinLGUextensionoffices.Onerespondentnotedsomeinteresthasdevelopedinbringingconsultingactivitiesintotheuniversityfold.
Failuretokeeptrackofconsultingactivitieswiththeprivatesectorrepresentsalostopportunityforuniversitiestotransformad-hocpersonalrelationshipswithindustryintoinstitutionalrelationshipsthatcouldleadtoconsultingopportunitiesforadditionalfacultyandbuildacultureoftrustandinformationsharing,whichiscurrentlylacking.Insomecases,itmayalsoconstitutealostopportunityforrevenuecapture.Furthermore,institutionalizingconsultingagreementscanprotectuniversitiesfromreputationalrisk,offeringamechanismforoversightandqualitycontrol.
Thesethreefactorscontributetotheoverallweaknessofrelationshipsbetweenindustryandacademe.Thus,academeisdisconnectedfromindustryandfarmerneedsforinnovation,anduniversitiesaredevelopingfewerpractical,relevanttechnologies.PrivateagribusinessesdonottakeadvantageoftheexpertiseavailableinPhilippineuniversities,slowingtheprocessofprivatesectorinnovation.Finally,weakrelationshipsmeanthatuniversitiesarelessconnectedtopotentialinvestorsforagriculturaltechnologies,hinderingtheprocessofcommercializationand,ultimately,thepotentialforgrowthofferedbysuchtechnologies.Thesefactorsservetoreinforcetheweaknessoftheserelationships.
Recommendations:
Universitiesneedstrongerplatformsforengagementwithindustry,whichcouldtaketheformofregularmeetingsornetworkingevents,industrydays,researchshowcases,internshipprograms,oranycreativebutsystematizedwaytofosterpersonalandinstitutionalrelationshipswiththeprivatesector.Theseactivitieswillhavegreaterimpactsoninnovationiftheyexposeresearchersinnon-agriculturefields(e.g.,chemists,engineers,andcomputerscientists)toissuesinagro-industry.Aspartofthisengagement,universitiesshouldinstitutionalizeconsultingagreements,beingcarefulnottobureaucratizethem,whichcoulddeterfacultyorbusinessesfromengaginginsuchrelationships.ToreiteratetherecommendationoftheSTRIDE2014report,stakeholdersshoulddeveloprevenue-sharingguidelinesandprotocolsforuniversity-industrypartnershipstoimprovemutualtrust.
UniversityKTTOsordepartmentalofficesshoulddevelopresearchcommunicationsorupdatesdirectedatindustryandsendthemdirectly
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toindustrystakeholderselectronically.Thepurposeofthesecommunicationsshouldbetoinformagribusinessesofwhoisdoingwhatattheuniversityintermsofnewprojects,newtechnologies,andtechnologiesavailableforcommercialization.In-personpresentationsarealsorecommended.TheSTRIDEprogramadvocatesmanywaysofbuildingstrongrelationshipsintendedtoeasetheflowofinformation.Theseincludeguestindustrylectures,faculty‘externships’(orimmersions)and‘innovationworkshops’.
Universities’websitesshoulddetailthequalifications,expertise,andup-to-dateresearchexperienceandoutputoffaculty.Additionally,departmentandprogramwebsitesshouldbetterillustratetheircurrentresearchinitiatives,matureresearch,andtechnologytransferachievements.Thesesitesshouldbesearchoptimizedsotheycanbefounddirectlybysearchusingafewkeywords.
Additionally,PCAARRDandDA-BARshouldmaintaintechnology“marketplace”pagesontheirwebsites,detailingtestedtechnologiesthathavebeentestedandarereadytobetransferred.(PCAARRDmentionedplanstolaunchsomethingsimilar.)Ratherthansimplypromotingresearchfunders’achievements,thesesitesshouldcontaininformationusefulforpotentialinvestors.Currently,peopleinterestedinnewtechnologiesmustattendpitchingeventsorvisitthefunders’offices,whichisasignificantupfronttimeinvestment.
Systematicconstraintslimituniversitysupplyofagriculturalresearchand
innovation.
Ø Teachingloadsareheaviestinruraluniversitieswhere
agricultureismoreprominent.
Whereasingeneral,publicuniversities’standardteachingloadsarereportedtobeninecreditspersemester,inlesswell-resourceduniversitiesoutsidetheManilaarea,therequirementisapproximately18creditspersemester.Thisassessmentconfirmedthe2014findingthateventeachingninecreditsconstrainsthebandwidthforinnovation.Becausetheseruraluniversitieshaveanadvantageinproducingpracticalinnovationsandresearchtobenefitfarmers,thisdifferenceinteachingloadrequirementdisproportionatelyaffectsthesupplyoffarm-levelinnovations.
Ø Fundingopportunitiesandguidelinesareperceivedbysomeas
non-transparent.
Becauserules,eligibility,andopportunitiesforfundingarenotperceivedastransparentandpublicallyavailable,researcherswhoarenot
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networkedthroughtheiruniversity,aconsortium,orapersonalconnectionorwhoarelessexperiencedstruggletoaccessfunding.Somefundingagenciespostsomeopportunitiesandinstructionsonline,buttheyaredifficulttofind,incomplete,andoutdated.Thisperceivedopacitycandeterwould-beinnovators.
Recommendations:
Toreiteratetherecommendationfromthe2014assessment,researchfundersshouldpermitfacultytouseresearchgrantsfundstobuyoutor“de-load”theirteachingobligations.Theimportanceofthisfindingisamplifiedforagriculturalresearch.
Agriculturalresearchfundersshouldupdatethesolicitationsectionsoftheirwebsitestomakethemmorecompleteandeasiertonavigate.Allinformationaboutcurrentfundingopportunitiesandfundingguidelinesshouldbelinkedtofromonepage,andeachpageshouldbedatedsothatvisitorsknowtheinformationiscurrent.Thesepagesshouldbeupdatedregularly.Funderscouldalsotrytopromotetheirfundingcallsdirectlytoless-connecteduniversitiesorjuniorfacultythroughinformationsessions,webinars,oruniversityvisits.
Opaqueandinefficientpublictechnologytransferandextensionsystems
impedethediffusionofagriculturalinnovations.
Ø Agriculturalextensionisde-prioritizedbyresearchersand
universities.
Extensionisavaluablechannelforuniversitiestoengagewithfarmers,buildtrust,understandthepracticalneedsofagriculture,anddisseminateresearch.Universitiesrequiretheiragriculturefacultytodividetimeamongteaching,research,andextension.Theteachingloadisaninextricablerequirementthatcantypicallyonlybeescapedthroughadministrativeduty.Researchismodestlyincentivizedthroughhonorariafromfundersanduniversitycareeradvancementrewardsforpublicationsandpatents.However,extension,whilemandated,maybeincentivizedthroughhonorariabutisrarelymonitoredorenforced.Extensionis,therefore,lefttoresearchers’motivationsandresourcefulnessandtheculturesoftheirdepartments.Additionally,researchersaresaidtooftenpreferobtainingfollow-upresearchfundingratherthandisseminationfunding,likely,atleastinpart,becausetheincentivesforresearchoutputaregreater.
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Ø Additionalstagesofgrantfundingarerequiredfortechnology
transition.
First-stageresearchgrantsfundbasicresearchandprototypedevelopment.Researchersmustapplyforasecondstageoffundingtoconductefficacytrialsorpilots.Forresearchthatdoesnotinvolveproductgeneration,grantfundingrarelyincludesabudgetforthedisseminationoftheresearchfindings,soresearchersmustapplyseparately.Thisaddslayersofpotentiallyunrewardedeffortandpotentialdelaysthatdisincentivizeresearchersfromtakingresearchtothetechnologytransferlevel.
Ø Transferfromresearchtoextensionwithingovernmentfunders
canbeinefficient.
TheATI,whichoverseesextensionatthenationallevel,doesnothaveamechanismtoidentifyandtakeovertechnologiesfromuniversities.Instead,itreliesontheDAtopassalongmaturetechnologies.However,theDAmaynotalwaysbeawareofpromisingtechnologiesthatarereadyfordissemination.PCAARRD’sTTPDtrackscompletedprojectstoidentifymatureresearchthatisreadyfortransition,buttheprocessisslowandinvolvesmanysteps.Theregionalresearchconsortiaalsoserveasamechanismfordissemination,butapprovalforfollow-upfundingtotestatechnologystillrequirestheinvolvementofthePCAARRDcentraloffice.
Ø Theprocessforpublictechnologytransferisopaque,which
discouragesresearchersfrompursuingit.
Asdescribedabove,thepathtotechnologytransferiscomplicatedanddependsonthesourceoffundingandseveraldifferentactorsintheecosystem.SomeambiguityexistsregardingwhoisresponsibleforconnectingthetechnologytotheDAoragriculturalextension.Researcherswithmatureinnovationsthatarereadyfordisseminationoftendonotknowhowtodeliverthemintotheextensionsystem.Thisconfusionitselfdissuadesresearchers,whoarenotincentivizedbasedontechnologytransfer,frompushingtechnologiesoverthefinishline.
Recommendations:
Government-fundedtechnologytransferoffices(includingtheATI)shouldbeinvolvedinresearchatanearlierstagesothattheycanidentify,track,andtakeoverresearchwithpromisefortechnologytransfer.Thiswouldallowthemtobeproactiveinrespondingtotheirmandatetotransfertechnologyratherthanreactingtoresearch
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40 | Agribusiness Innovation Ecosystem Assessment
managers.Additionally,itwouldallowentrepreneurialresearcherstocommunicatedirectlywithpeoplewiththesamemotivation:totransferthetechnology.Fundingagencies(i.e.,DA-BARandPCAARRD)shouldcommunicateclearinstructionsandexpectationsfortechnologytransferwhentheyreleaseresearchgrants.
Facultyatregionaluniversitiesshouldhaveincentivesthataretiedtotechnologytransfer,includingextensionactivities.Becauseuniversitiesareresourceconstrained,theseincentivesshouldbestructurednottorewardtimespentdoingextensionactivitiesbutratherontechnologysuccess.Therefore,inthecaseofextension,facultyshouldbeencouragedtoworkwithLGUsandtheprivatesectortodisseminatetheirinnovations.Theseincentivesshouldbealignedandsharedwithfundinginstitutions.Furthermore,moneyfordisseminationshouldbemademoreaccessible.Onepossibilityistoincludefundingintheoriginalresearchgrantandmakeitsreleasecontingentonmeetingcertaintargets.Takentogether,thesesteps—increasingincentivesanddecreasingbarrierstoextension—shouldreducethesupplyofpotentiallygoodinnovationsstuckintheresearchphase.
Lengthyprocessesfornewagriculturalproductregistrationsslowand
deterinnovation.
Pesticide(FPA)andnewfoodproduct(FDA)registrationtimesaresignificantlyslowerinthePhilippinesthaninothercountriesintheregion.Ourintervieweesestimatedthat3‒5yearsarerequiredtobringanewpesticideproducttomarket;thisisapproximately2yearslongerthanneededinneighboringMalaysiaandIndonesia.Thisdelayreducesthechoicesavailabletofarmersanddis-incentivizesinnovationamongcompaniesthatareafraidtheywillnotbea“firstmover”withanewfoodproductinthemarket.Partofthisinefficiencyisattributedtoantiquatedpaper-basedsystems,andtheFPAissaidtobeunderstaffed.
Recommendation:
BoththeFPAandFDAshouldmovetowardsonlineproductregistrationsystemsfollowingregionalbestpracticesandshouldinvestinqualitypersonnelwithincentivesalignedwithexpedience.InterviewswiththeFDAindicatedthattheseimprovementsarealreadyinprogressfornewfoodproducts.TheFPAshouldconsiderupdatingitsregulations,inlinewithgloballyacceptedpolicies.
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Appendix:ListofOrganizationsInterviewed
• 1,000Angels• ACDI/VOCA• AgriculturalTrainingInstitute• Agrotiger• AgspecCorporation• AteneodeDavao• Atovi• AustralianCentreforInternationalAgricultural
Research• BureauofPlantIndustry• CacaoDulce• CacaoIndustryDevelopmentAssociationof
Mindanao• CamiluzEnterprises• CaviteStateUniversity• CebuChamberofCommerceandIndustry• CenterforTechnologyTransferand
Entrepreneurship(UPLB)• CloudFarmInnovations• DavaoProvincialAgriculturalOffice• COMPETE(USAIDProject)• DepartmentofAgriculture• DepartmentofAgriculture-Bureaufor
AgriculturalResearch• DeLaSalleUniversity• DepartmentofScienceandTechnology• DowChemical• DepartmentofTradeandIndustry• FarmtechAgrilandCorp• FoodandDrugAdministration
• FertilizerandPesticideAuthority• UniversityofSanCarlos• Ideaspace• ITDI• Kennemer• LaFilipinaUyGronco• LGTImpactVentures• MangoSeedlingFarmCorporation• MtApoCoffee• NaturaleWonders• Nestle• NestleTagum• OroFilipinas• PCAARRD• PCIEERD• PhilippineCoffeeBoard• PhilMech• PuentispinaFarms• RichfundInternational• SamalIslandMangoMarketingCooperative• SouthernPhilippinesFreshFruit• Splash• SubastaCooperative• SouthernMindanaoAgricultureandResources
ResearchandDevelopmentConsortium• UniversalRobinaCorporation• UPLB• UrbanIntegratedConsultants• UniversityofSoutheasternPhilippines