Innovation systems: Implications for research and policyI3L Powertalk
AGRICULTURE
Dr Andy Hall • CSIRO Research Group Leader – Innovation Dynamics for effective agriculture systems (IDEAS)
5 February 2016
Outline
• The challenge of moblising science for innovation.
• Defining innovation.
• Technology in a system of use.
• Systems of continuous innovation.
• Role of public research and the private sector
Innovation systems: implications for research and policy • Dr Andy Hall2 |
The challenge and the paradox
• Science is the most powerful tool for discover and knowledge creation know to
human kind. Ever. And we are getting better at it all the time.
• Business and entrepreneurship is the most powerful tool for driving innovation that
delivery products and services we need and for making money. Ever. And we are
getting better at it all the time.
• Yet scientific research organisations are under intense pressure not just to
demonstrate scientific excellence.
• To be an agent of innovation, an innovation catalyst, an innovation hub, to be client
focused and to demonstrate contributions to social and economic impacts.
• What does that mean and what is this innovation thing that we are been asked to
do?
Innovation systems: implications for research and policy • Dr Andy Hall3 |
Innovation: the simple meaning
• Research turns money into ideas. Innovation turns ideas into
money.
• A process that combines:
– Technological break - throughs or inventions: The creation of ideas from
research, but also from other sources.
– Technological artifacts: The embodiment of technology and ideas in new
products and services
– Using ideas for gain: The actions, practices and conditions that allow ideas
to be put into productive use.
Innovation systems: implications for research and policy • Dr Andy Hall4 |
Innovation: more meaning
• The process of creating and putting into use combinations of knowledge from many
different sources
• This knowledge may be brand-new, but usually it is new combinations of existing
knowledge
• Not research or technology, but might involve both.
• To be termed innovation, the use of this knowledge has to be novel to the farmer or
the firm, neighbours and competitors, but not necessarily new globally
• Invention, on the other hand, is the creation of new knowledge new to the world,
usually by research organisations, but also by artisans and others
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Different ways of organising agriculture innovation• Dr Andy Hall
Innovation systems: implications for research and policy • Dr Andy Hall
Technology in a system of use
Technology is an important component of innovation but for it to have social and economic value it needs to be part of a system to enable its use.
• New crop varieties
• Aeronautical engineering
Innovation systems: implications for research and policy • Dr Andy Hall6 |
New crop varieties in a system of use
• Crop variety with higher performing characteristics
• Mechanisms for articulating farmer and consumer demand for new
characteristics
• Accompanying technical changes: water management, agronomy, pest
control.
• Changes in input and output markets (seed supply, procurement)
• Farmer organizations to negotiate prices and create markets for new
crop.
• Policy changes: price policy for inputs and outputs, regulation of credit,
seed certifications
Innovation systems: implications for research and policy • Dr Andy Hall7 |
Aeronautical engineering for passenger line travel
• Technological push from jet engine technology, aircraft design and
navigation systems.
• Accompanying technologies and systems: air traffic control systems, flight
scheduling, travel agents, policy, regulation and safety standards, catering
services (disgusting though their food maybe), airport infrastructure etc.
• continuous process of upgrading and innovation. The low cost airlines
revolution; on-line booking and e-ticketing.
• Not only technology driven innovation, but consumer driven innovation
enabled by technology
Innovation systems: implications for research and policy • Dr Andy Hall8 |
Different types of innovation?
• Technological innovation: Farmers adopting a new crop variety, a
new agronomic practice, or animal feeding regime.
• Organizational innovation: farmers work collectively to market
produce.
• Institutional innovation. Researchers form new partnerships with
farmers and companies to deliver solutions that give income and
profits
9 | Innovation systems: implications for research and policy • Dr Andy Hall
What does innovation look like?
• Business innovation: companies develop new products
and service or new ways of delivering these that create
profit and other value.
• Value chain innovation: Value chain actors use new
ways to procure, add value or market products.
• Policy innovation: regulations, rules and incentives
that add value to social and economic activity. Food
standards, pesticide approvals, new ways of financing
farming and business investment.
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Different ways of organising agriculture innovation• Dr Andy Hall
Innovation systems: implications for research and policy • Dr Andy Hall
How does innovation happen?
• There are broadly 2 views.
• A technology transfer pipeline view
• A “systems” views that suggests different
types of innovation need to be coupled
together.
• Neither can be universally correct.
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Different ways of organising agriculture innovation• Dr Andy Hall
Innovation systems: implications for research and policy • Dr Andy Hall
What do we know about how innovation happens?
• Entrepreneurs are the driving force with motivation to search out
opportunities to extract value from ideas.
• Innovation emerges from a dense network of interaction which allows ideas to
flow and be shared and which allows different ideas to be combined in new
ways.
• Partnerships and other business and social relations help this.
• Routines and other learnt behaviors that make interaction standard practice in
organization are a key element of innovation capability in both the public and
private sectors.
• Innovation is not just risky but is highly uncertain and unpredictable as it
emerges from a complex system of interaction
Innovation systems: implications for research and policy • Dr Andy Hall12 |
What is an innovation system?
Networks of organizations or actors, together with the
institutions and policies that affect their innovative
behaviour and performance, continuously bring new
products, new processes and new forms of organization
into economic and social use.
Innovation systems: implications for research and policy • Dr Andy Hall13 |
Innovation systems: implications for research and policy • Dr Andy Hall14 |
“Innovation systems” view
Technology triggers
Market triggers
Social triggers
Environmental triggers
Research Organisations
Enterprises
Support Organisations
Markets and Consumers
“Go - between” Organisations
Protocols
Enabling Policy Environment
Innovations of
economic, environment
al or social significance
New capacity to innovate
An “innovation ecosystem” view of an agri-food innovation system (after Hall 2012)
Some implications and missunderstandings
• Research needs to become a more responsive element of the innovation
system (consumer clients, business clients, policy clients).
• Investments by organisations needed in building partnerships and links.
• Investments by organisations in learning routines that strengthen
interaction, knowledge sharing and access.
• X The market will invest in innovation brokering and intermediation to
build dense networks of interaction.
• X All research must respond to the needs of the market
Innovation systems: implications for research and policy • Dr Andy Hall15 |
Role of the public sector in enabling innovation.
• Setting framework conditions, policy, regulation, infrastructure, law and order.
• Addressing market systems failures: tax credits for R&D in the private sector,
public good applied research.
• Addressing innovation systems failures?
• Creating mechanisms to promote non-market interactions that underpin
innovation (long term public private sector interface)
• Investing in research and market development in uncertain innovation
trajectories that can create new economic sectors (biotech, ICT, nano-tech etc)
• Investing in innovation trajectories with high social value: renewable energy
and green technology generally, food waste and nutrition, inclusive innovation.
Innovation systems: implications for research and policy • Dr Andy Hall16 |
Innovation systems demands more and different public investment not less
• Mazzucato (2013) argues for an urgent need for “Mission-mode public
investment” in opening up new innovation trajectories and associated markets.
• Investment in research, business capacity development and associated
innovation support services and financing and investment.
• Priorities are likely to involve technological innovation opportunities that sit
across existing areas of research, to uncertain to rely on the private sector alone
in its formative stages
• Efforts to develop business opportunities and markets around these, with close
public private sector partnership.
Presentation title • Presenter name17 |
Paradox of the smart phone
• Icon of private entrepreneurial led hi-tech innovation … Or is it?
• Did consumers articulate a demand for smart phones? Or did
technology create that demand?
• Never the less a plethora of transformational impacts on every
sector of the economy and in fact society as a whole
• The key technical innovations came from private investment in
R&D. Right? Wrong!
Innovation systems: implications for research and policy • Dr Andy Hall18 |
Presentation title • Presenter name19 |
Public investments that make the iPhone ‘smart’ (source Mazzucato, 2013a, p. 109)
Some concluding conundrums
• Innovation is not research or technology, but may involve both.
• Innovation is not supply led or demand led, but involves the iteration between
opportunities and needs.
• Market failures create risks that prevent private investment, innovation is
uncertain and requires public investments.
• Innovation performance has a rate, but also a direction that can not be left to
the market alone.
• Business innovation is a critical driver of economic growth, but this requires a
more entrepreneurial, proactive role for the public sector not a smaller hands
off approach.
Innovation systems: implications for research and policy • Dr Andy Hall20 |
Andy Hall, CSIROLevel 1 Ecosystem Science Building, Black Mountain Laboratories, Clunies Ross Rd, Acton, ACT 2602TEL. +61 477 735 [email protected]
AGRICULTURE
Thank you
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