1. Facilitating Agricultural Innovation System in Azerbaijan Tugrul Temel and Ajit Maru November 11, 2002

2. Background  Past: The Agricultural Innovation System (AIS) project completed in 2001  Recent past. A workshop carried out in 2002  Present: A new project proposal being prepared for funding

3. Past  The AIS project completed in 2001 found that public and private sector organizations are in isolation.

4. Recent past With a one-day workshop, we  Examined the situation in the cotton supply chain.  Experimented the definition of the AIS for cotton  Discussed the steps for creating an Agricultural Information Exchange Network (AIEN) for the AIS for cotton.  Explored opportunities for a joint ISNAR-ASCA- ASDAPS project proposal for an AIEN for multiple crops.

5. Present A collaborative project proposal is being prepared  To describe & analyze the AIS for smallholder mixed farming  To establish an AIEN for smallholder mixed farming

6. Conceptual framework AIS is defined as a group of agents – policy makers, research orgs, banks, farmers, input suppliers, marketing & processing firms, consultancy firms, NGOs, donors, intl orgs - that jointly and/or individually: Develop, diffuse, & apply new/improved technologies, Influence the process of change in farming

7. A group of agents  Policy units [P]  Research & extension organizations [R]  Agricultural banks [B]  Farmers & their organizations [F]  Input suppliers [I]  Marketing firms [M]  Processing firms [Pr]  Consultancy firms [C]  NGOs, Donors, Int’l organizations [X]

8. The AIS comes into being  The AIS comes into being through flow of: Information Knowledge Skills Resources  This flow of IKSR is pluralistic.

9. Agricultural Innovation System Organizations and Their Linkages P R B F I M Pr C X Linkages between any two organizations in the AIS FXLinkage between Farmers and External organizations Additional organizations in the AIS Organizations in NARS FX PM

10. Agricultural Innovation System: Information Flow through an Information Exchange Network P R B F I M Pr C X FX PM Information Exchange Network Linkages between any two organizations in the AIS Additional organizations in the AIS Organizations in NARS Information Flow in AIS through Information Exchange Network

11. The Agricultural Information Exchange Network (AIEN) An AIEN is a collaborative arrangement to effectively share and exchange information, knowledge and skills among agents participating in an AIS.

12. The Agricultural Information Exchange Network  Its primary aim is to reduce the asymmetry of information and knowledge among agents regarding innovations in the AIS.  Its main characteristic is of providing formal channels for information flow between agents in an AIS.

13. Need for an AIEN  Information, Knowledge, Skills and Resources flows define an AIS.  An AIEN formalizes IKSR flows in an AIS and enables a formal AIS to emerge.  An AIEN is an essential supporting for an AIS.

14. The AIEN  The AIEN is a “public good” and has to be established by the public sector agricultural research and development agency.  It may be sponsored through public-private partnership at some stage in its evolution.

15. Driving Forces for an AIEN  Urgent need to participate in markets.  Overriding National or Community Need such as famine, natural disaster or war.  Government Policies.

16. Constraints/Obstacles  Monopolies and “Closed” markets.  Controlled economies where cost, quality, time and human pain are not of consequence to production.  Social and Political. In ASEAN Countries, social behavior and community structures have inhibited the “E-Farmer” network.

17. AIEN and Azerbaijan  Physical isolation of agents.  Weak “Agricultural Knowledge” among all actors.  Need to enlarge the scope for participation in more”open” markets

18. AIEN and Azerbaijan  Establishing an AIEN will give structure to AIS.  Contribute to identifying the “real” agents in AIS for smallholder mixed farming.  Reduce the weakness in “Agricultural Knowledge” among all agents.

19. Outputs and Dissemination  A conceptual framework for the AIS  Improved understanding of the AIS  Improved capacities for promoting the AIS and the AIEN  Publications and a Website Two ISNAR Discussion Papers, One ISNAR Country Report, Two peer reviewed journal publications, One presentation in professional conference, A website for the dissemination of all outputs noted above.

20. Thank You