A 6th Meeting of the AC on S&T, Wageningen, November 12-16,

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1 How innovative is your agriculture? A framework for designing an agricultural innovation indicator system David J. Spielman and Regina Birner International Food Policy Research Institute Overview Purpose Discuss the use of innovation indicators as a tool to guide innovation policy and improve innovation performance in developing-country agriculture Outline Why measure innovation? Towards a conceptual framework Indicators, indices, scorecards, and other tools Agriculture-specific indicators Project goals Page 2 Why measure innovation? Innovation measurements and indicators are often used in industrialized countries to improve national innovation and economic performance guide science, technology and innovation policymaking inform national and global deliberations on science, technology, and innovation demand for information to improve competitiveness, particularly in knowledge-intensive sectors and economies Page 3 Wageningen, November 12-16,

2 Why measure innovation in agriculture? Developing-country agriculture must change rapidly Growth of markets as driver of technological change Demographic and agroecological pressures Trade liberalization and new economic regimes Growing private investment in knowledge & technology Expanding information & communication technology Increased availability of qualified expertise demand for information on ways to promote dynamic, competitive, and innovative agriculture in developing countries Page 4 A systems approach helps identify what to measure Informal institutions, practices, behaviors, and attitudes Examples: Organizational culture; learning orientation; communication practices Agricultural research and education systems Agricultural education system * Primary/secondary * Post-secondary * Vocational/technical Agricultural research system * Public sector * Private sector * Civil society Bridging institutions Political channels Stakeholder platforms Agricultural extension system * Public sector * Private sector * Civil society Integration in value chains Agricultural value chain actors & organizations Consumers Processing, distribution, wholesale, retail Agricultural producers (of various type) Input suppliers Agricultural innovation policies & investments General agricultural policies & investments Linkages to other economic sectors Linkages to science & technology policy Linkages to international actors Linkages to political system Page 5 Indicators, indices, scorecards & other tools Different tools used to measure innovation include Indicators (e.g., OECD S&T Indicators) Indices (e.g., World Bank Knowledge Economy Index) Scorecards (e.g., EC European Innovation Scoreboard) Page 6 Wageningen, November 12-16,

3 Ex: Global Competitiveness Index, 2006 Germany United Kingdom France Malaysia Spain Thailand Italy India South Afirca Indonesia China Vietnam Kenya Nigeria Ethiopia Country scores (1-7) Global Competitiveness Index Innovation factors Higher education and training Page 7 Source: WEF 2006 United Kingdom Germany France Spain Italy Malaysia South Africa Thailand China Indonesia India Vietnam Kenya Senegal Ghana Nigeria Ethiopia Ex: Knowledge Economy Index, KEI score (0-10) Page 8 Source: KAM Ex: European Innovation Scoreboard SE 0.70 FI CH DK Innovation Leaders 0.60 JP DE Summary Innovation Index Followers UK US FR IS BE NL AT IE NO IT EE ES HR HU MT Trailing SK PT EL BG SI LT CZ PL LV LU CY RO 0.10 TR Catching-up Average growth rate of SII Page 9 Dotted lines show EU25 mean performance. Summary Innovation Index ranges from 0 to 1. Source: CEC 2006; Hollanders, pers. comm. Wageningen, November 12-16,

4 Agriculture-specific indicators In general, there are very few initiatives that compile and analyze agriculture innovation indicators specific to developing countries Examples include Agricultural Science & Technology Indicators (ASTI) initiative One-off research studies on key innovation domains (research, extension, value chain up-gradation) Page 10 ASTI: Public AgR&D intensities, c Malaysia South Africa Kenya Vietnam India Ghana Ethiopia Nigeria China Page 11 Source: ASTI 2006 ASTI: Public Ag R&D spending, billion 2000 international dollars SSA (44) AP (28) LAC (27) WANA (18) Developing countries, subtotal (117) Higher-income countries, subtotal (22) Page 12 Source: Pardey et al Wageningen, November 12-16,

5 1.08 Coelli & Rao: Ag TFP growth estimates Average annual change Efficiency change Technical change TFP change China Australia Vietnam Myanmar India Phillipines Malaysia Thailand Indonesia Page 13 Source: Coelli and Rao 2003 Ex: Extension estimates, 1988 Expenditures on extension as a share of AgGDP (%) Farmers per extension agent (1988) Hectares of arable land per extension agent (1988) Africa ,809 2,245 Asia & Pacific ,661 1,075 of which China , Latin America ,940 3,983 Near East ,499 5,403 USA ,441 Japan Source: Roseboom 2004 Page 14 Ex: Value chain indicators Indicators of representative value chains in food staple crops, high value crops, and livestock include Share/growth rate of agricultural value chains as a % of GDP Share of farm output marketed commercially Value of private firms operating in agricultural sector Share of value added domestically to a commodity within a specific value chain Share of FOB price retained by farmers for specific value chains Degree of price volatility for a specific commodity Source: Kaplinsky & Morris, 2001; authors Page 15 Wageningen, November 12-16,

6 Project goals and methods To design, compile, and analyze indicators to capture key domains of an agricultural innovation system Key features Combination of hard and soft data Capturing innovation inputs, outputs, and processes Focusing on a range of innovation agents and institutions Accessible data/methods for country/cross-country analysis Packaged to serve both researchers and policymakers Page 16 Data and data sources The biggest challenge: finding reliable data and data sources International sources Government sources Industry sources Market- and firm-level analysis Expert sources Other sources Page 17 Questions for discussion Can innovativeness in agriculture be measured? Are data available? can they be collected/compiled? Can measurements of agricultural innovativeness inform policymaking in a given country? Can data be gathered on a regular basis to ensure long-term relevance and value? Who will gather it, and at what level? What are the cost implications? Page 18 Wageningen, November 12-16,

7 Thank you Page 19 Wageningen, November 12-16,

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