1 Agricultural Innovation System: Observations From Azerbaijan Tugrul Temel March 23, 2001

2 Outline Background Objectives Motivation Definition Data collection Methodology Discussion Suggestions Conclusions

3 Background Agricultural GDP/total GDP [down] Oil exports [up], cash crops [up] Food imports [up] 66 % of agr. land in S/M control Agr. investment [down to zero] Excessive land fragmentation Inoperative irrig. sys - land salinity Privatization of state enterprises Spin offs in agro-processing sector Regional cooperation Attract FDI

4 Objectives describe and analyze the existing Agricultural Innovation System (AIS) set the key priorities for the AIS suggest changes in the AIS

5 Motivation Knowledge central to economic development (new growth, evolutionary, institutional) Learning as important as direct investment in R&D Innovation everywhere in society With the systems approach Identify leverage points Detecting mismatches Developing alternative mech.

6 Definition An AIS is a set of agents that jointly and/or individually contribute to the development, diffusion, and use of new or improved technologies.

7 Data collection A Questionnaire: organizational profile, innovation activities, innovation linkages, constraints 66 people interviewed

8 Methodology Concept 1. A matrix of relations

9 Concept 2. A matrix of coded relations

10 P R I F E

11 Concept 3. A cause-effect structure

12 Discussion A matrix of relations

13 A matrix of coded relations

14 A cause-effect structure

15 Suggestions: general Set national agricultural and science and technology policies Identify research priorities and science and technology strategies Establish financing mechanisms coupled with general guidelines of the policies Establish an enabling environment to usher innovation activities Consider the teachings of economic thinking

16 Suggestions: specific Two failures: lack of goal and lack of active intermediary institutions Integrate research to the AIS: I  R  EA  I and I  R  EA  CO  I Link research to the rest of the AIS by CGS Collaborative research b/w private and public sectors Attract FDI to link strongly I, IPM, F, CO, EA

17 Conclusions Private sector is an embryonic stage Private and public components of the AIS are disconnected Environment needed for the growth of interface institutions Interactions within the public sector is very weak Interactions within the private sector is somewhat better