1. VIIP Proposal Preparation Workshop November 3, 2015

2. Workshop Agenda Inclusive innovation – what does it mean? Review results of round 1 call Review meaning of C1 – C4 subprojects Qualities of a strong VIIP proposal Examples Q & A’s

3. Inclusive Innovation – What does it mean? Inclusive – focused on benefiting BoP population Innovation – Traditional research generally translates money into knowledge – Innovation translates knowledge into “money” or “social value” Two general types of innovation – Radical – Incremental (generally the focus of inclusive innovation projects)

4. Review of Round 1 Proposals Improvement Needed Too process oriented (need clearly defined outcomes) Better understanding of domestic and export markets Stronger technology partners (domestic and international) Stronger alignment between work plan and budget request Stronger links to industry for commercialization Better risk identification and mitigation measures Better ability to classify proposals within C1 – C4 categories

5. C1 – New Product / Service Generating a new innovative technology / product with strong commercial potential in Vietnam and export markets Excellent potential for a large, positive impact on the BoP in Vietnam Typical outcome of a category 1 subproject would be an early stage innovative technology / product Strong intellectual property protection potential Collaboration is essential (typically international)

6. C2 – Adapt and Upgrade Adapt and upgrade an existing technology / product (in Vietnam or from international sources) with strong commercial potential Serves the needs of the BoP Typical outcome of a category 2 subproject would be a product prototype (closer to market than C1 subproject) Strong market potential / readiness for scale up and successful commercialization

7. C3 – Grassroots Innovation Generating an innovative product / service emerging from individual(s) who are not part of an SME enterprise or research organization Outcome could range from an early stage innovative product to a later stage prototype product Strong potential for scale up and successful commercialization Likely limited IP potential

8. C4 – Scale Up and Commercialize Focused on scaling up and commercializing an existing technology / product Typical outcome of a category 4 subproject would be a commercially successful product undertaken by private sector enterprises

9. Qualities of Strong C1, C2 Proposals Identify clear set of inclusive innovative outcomes (new products / services) – What problem or necessity is this subproject addressing? – What makes these products / services innovative? – Is this first of a kind in Vietnam? World? – What are benefits to BoP population? Quantify to the extent possible (e.g., potential for job creation, wage / income increases) – Is the subproject likely to generate new, protectable IP? Domestic? International?

10. Qualities of Strong C1, C2 Proposals (cont’d) Show strong commercial potential (domestic and export market assessment) for products / services – Assess the relevant existing market(s) (domestic / export) – How do proposed products / services compete relative to current products / services in the market? – Estimate market size and growth for new products / services (quantify to the extent possible) – How will new products / services be delivered to the market? Who will manufacture or develop? Are they an integral part of the subproject team?

11. Qualities of Strong C1, C2 Proposals (cont’d) Develop clear research agenda / work plan to accomplish outcomes – Describe key research, development and other activities to achieve subproject outcomes – Identify any innovative research activities (novel research activities – key to C1 proposal) – Identify any existing technologies to be leveraged and describe process for applying, adapting, or upgrading these technologies (primary focus of C2 proposal) – Identify key technology collaborations (domestic and international) – Identify any support services to be developed

12. Qualities of Strong C1, C2 Proposals (cont’d) Budget should be well aligned with work plan – A C1 proposal with a USD 700K budget indicates the proposers likely have not done their homework – Each element of the budget needs to be directly linked to a value-added subproject activity Identify strong capabilities to accomplish work plan – Describe organizations and their roles on the subproject – Identify research and business leaders on the subproject – Describe related work done or in progress in Vietnam or elsewhere – Identify strong domestic and international collaborators

13. Qualities of Strong C1, C2 Proposals (cont’d) Identify Key Performance Indicators to assess subproject performance Identify commercial advantages to Vietnam – How are proposed products / services designed to serve Vietnamese market needs? – Is there potential to export to other SE Asia nations? Identify relevant technical, market, environmental or social risks – Develop a mitigation strategy for each risk Avoid duplication - no similar work is being done in Vietnam now or in the past

14. Key Performance Indicators A key performance indicator (KPI) is a type of performance measure. KPIs are designed to evaluate the subproject progress relative to subproject objectives and management expectations. KPIs will be developed for each subproject by the team in the application proposal itself. Technical Panel of Experts will review and finalize these after review and discussion with the proposal owner and team

15. KPI Categories Technical – Progress relative to work plan – Progress relative to subproject outcomes Management – team collaboration, effectiveness and overall performance – financial management and reporting – meeting environmental and social requirements Budget – effective budget management – cost-effective operations IP development Commercial Outcomes BoP Impact

16. Some Examples

17. Example Outcomes Enhanced Food Product Development of 2-3 unseasonal “fruit” varieties that offer substantial opportunities for productivity and income increases in the region Building a corporate garden demonstration model that will demonstrate and transfer new seed varieties and techniques to local farmers Harvest and Postharvest technological advances resulting in reduced weight loss, improved storage and other benefits to farmers Development of a regional cooperative to enhance the value chain (reducing “middlemen” and profit loses along the way)

18. Example BoP Benefits Food Product Production Focus on developing continuous production line for producing food product within craft villages Beneficiaries are more than 2000 households each employing 10-15 laborers Increase quality of food product Increase productivity by 5-8 times Increase labor wages by 2-5 times Encourage industry growth by better serving Vietnamese market and opening export market Expect substantial increase in number of households engaged in production there increasing BoP benefits

19. Example Optimized for Vietnam Wind Power Generators Design low cost 200W wind power generators Leverages existing technology but optimized for Vietnam conditions (design, materials, manufacturing process) Accesses capabilities of Japanese university and two Vietnamese electric motor manufacturing companies Focused on rural areas with limited or no grid access Easy to set up and maintain Optimized for wind conditions in Vietnam’s mountainous and coastal regions (including off shore conditions) Export potential to other SE Asia countries

20. Example Optimized for Vietnam Aquaculture Broodstock Develop domestic broodstocks for aquaculture industry Currently importing large number of broodstocks Leveraging recent Vietnamese studies on developing broodstock populations Evaluate new broodstocks in real conditions of Vietnam aquaculture (5 different locations in Vietnam) Select new broodstocks based on growth and reproductive parameters in Vietnam conditions Seed price will be roughly 40 – 50% compared to import while optimized for Vietnam conditions Substantial export potential to SE Asia Need to ensure no duplication of funding given MOST focus in this area

21. Q&A