deep dive supporting innovators, entrepreneurs, and researchers€¦ · this evidence deep dive is...

QUESTION 3

Maximizing Development Impact via Support to Innovators, Entrepreneurs, and Researchers

LAB EVALUATION, RESEARCH, AND LEARNING PLAN

DEEP DIVESupporting Innovators, Entrepreneurs, and ResearchersSUMMER 2019 UPDATE

PHO

TO

: USA

ID

LAB ERL PLAN – QUESTION 3 / DEEP DIVE SUMMER 2019 UPDATE 1

This Evidence Deep Dive is a companion to the Question 3 Evidence Brief, produced as an output of the U.S. Global Development Lab’s Evaluation, Research, and Learning (ERL) Plan - a utilization-focused learning agenda supporting evidence-informed decision making in Lab operations and science, technology, innovation, and partnerships (STIP) programming. A process and set of products, the ERL Plan facilitated Lab learning and adaptation around four bureau-wide areas of inquiry: uptake of products, services, and approaches; adaptive management tools and practices; support to awardees and partners; and sustainability of results.

Insights from the ERL Plan are shared here as a record of emerging opportunities for evidence-based adaptation that could be acted on by USAID and other development actors. This work also contributes to the evidence base for the Agency-wide Self-Reliance Learning Agenda - an effort to support USAID as it reorients its strategies, partnership models, and program practices to achieve greater development outcomes and foster self-reliance with host country governments and our partners.

INTRODUCTION

1 Non-monetaryassistanceisdefinedasnon-fungiblesupport-asopposedtotheprovisionofcapital,funds,orotherinterchangeableassets-provideddirectlytotheawardee.Itoftenittakestheformofstaffsharingtheirspecializedexpertise,providingaservice,orotherintangiblesupporttailoredtoanindividualawardee.Note,USAIDandotherfundersdoincurcostsfornon-monetarysupport;however,thefundsusedtopurchasethissupportarenotprovideddirectlytoawardeesthemselves-butrather,areincurredascentralprogramstaffingcostsorcoreimplementingfunds.

2 ForTAcriticismsoutsideacademia,seeActionAid’s“MakingAidWork”report

3 TheOverseasDevelopmentInstitute(link)

TheLabprovidessubstantialnon-monetary1 assistance to theinnovators,entrepreneurs,andresearchersitfunds.StaffattheLabdosobecausetheirawardeesareoftennotentrepreneursorpolicymakersbytraining,butinnovatorsandresearcherswithinterestingideas.Theseideasandtheirpotentialforsocietalimpact,however,havepushedtheLab’sawardeesintothesenewroles.Inthiscontext,Labstaffhavesupportedawardeestoincreasetheirlikelihoodofsuccessandsothattheymightincreasethesocietalimpactoftheirwork.

Theprovisionofnon-financialsupportprovidedbydonorsintheinternationaldevelopmentsphere—typicallycalledtechnicalassistance(TA)—goesbackdecades.TheprimarygoalofTAhastraditionallybeentotransferknowledgeandskillstoanindividualorgroupwithwhomtheTAproviderworked.

IftheTAproviderwassuccessful,theywouldnolongerbeneeded(Williams,1964).Yet,theuseofTAbydonoragencieshasbeencontroversialinpractice(e.g.,seeLoomis1968;Blase1968;Godfreyetal,2002;BrautigamandKnack,2004;Easterly2007).2CriticsofTAarguethatitdistortslocallabormarkets,undermineslocalownershipandcapacity,biasesdonorassistancetowardstandardizedtrainingattheexpenseofon-the-joblearning,andsimply

paysforprogramslocalactorsdonotvalueenoughtopayforthemselves(Godfreyetal,2002;BrautigamandKnack,2004).Othersviewoutsideperspectivesandneutralityasfactorsthatenabledisputeresolutionwithinspecificcontexts,twofactorsassociatedwithTA.3

Moreover,recentresearchhighlightsthatentrepreneursindevelopingcountriescouldinfactgeneratelargeimpactsonemployment,firmsize,andotherfactorsthatleadtoeconomicgrowth,simplybyprovidingthemwithfinancing(McKenzie2017).Nonetheless,theproportionofoverallforeignaidspentonnon-financialsupportintheformofTAhasremainedconstantfordecades(Easterly2007).

Thenon-financialassistanceprovidedbytheLab,however,hasimportantdifferenceswiththeTAoutlinedintheinternationaldevelopmentliterature.WhilemuchoftheliteratureonTAdescribesmechanismsfor“teachingup”recipientsfromabaselevelofknowledgetoahigherlevelofexpertisewithintheirownfieldorsubject-area,Labsupportrecognizesthateachawardeebringstheirownknowledge,expertise,anduniqueideastothepartnership-butmayhavegapsinotherareas,suchasbusinessacumenorstakeholderengagement.


Asaresult,Labstaffhavefocusedonprovidingsupportinareasinwhichtheirinnovatorsandresearchershavegaps.Thiscouldmean,forexample,helpinginnovatorsstrengthentheinternalstructureoftheirbusinesses,arrangingopportunitiesforresearcherstopresenttheirresultstorelevantpolicymakers,orworkingwithinnovatorstodoeconomicanalysispriortoexpansionintonewmarkets.

4 InformationonPEERcanbefoundhere(link)

DrawingonLabdocuments;semi-structuredinterviewswithstaffacrosstheLabCenterforDevelopmentResearch(CDR),CenterforDevelopmentInnovation(CDI),andtheCenterforTransformationalPartnerships(CTP);andtheinternationaldevelopmentliteratureontechnicalsupport,thissectionexaminesifnon-financialsupporttoawardeescanbeeffectivewithintheLab’suniquecontextatUSAID.

“TRADITIONAL” TECHNICAL ASSISTANCE (TA) VERSUS LAB TA PRACTICES

Thedistinctionisclearerwithanexample.TraditionalTAmightinvolvefundinganexpertineducationtoprovidesupporttostaffintheMinistryofEducationofapartnercountry.TherecipientoftheTA(Ministrystaff )alreadyhavesomebaseknowledgeabouteducationsystemsandeducationpolicymorebroadly;thoughtheymaylackahighleveloftechnicalexpertiseinaparticularareatheyareseekingtoreform.Therefore,TAisneededtostrengthenskillsandknowledgewithintheirfield.

Incontrast,theLabmightworkwithanengineerwhoinventedatechnologythatsaveswaterinagriculture.Theengineeralsowantstoprofitoffofthisnewtechnology,butdoesn’thavebusinessskillstodoso,becausetheyspenttheirlifemasteringengineering.TheLabwouldprovidesupporttotheengineer-nottoteachthemhowtoimprovetechnicalaspectsoftheirtechnology-buttoassistthemwithcreatingasufficientrevenuebasetofacilitatethegrowthoftheirbusiness.

MuchofthesupportprovidedbytheLabismeanttofillgapsintheawardee’scapacitiesoutsidetheirareaofexpertise;nottostrengthentheirskillsintheirownfield.

INNOVATORS AND RESEARCHERSThetwoprincipalrecipientsofLabassistanceproduceawiderangeofproducts.CDRfundsseveraluniversity-basedLabsviatheHigherEducationSolutionsNetwork(HESN)andindividualresearchersthroughthePartnershipsforEnhancedEngagementinResearch(PEER)program.4Theseawardeesproducedata,research,andanalysisforconsumption.Incontrast,CDIfundsawiderangeofinnovatorsandentrepreneursviaDevelopmentInnovationVentures(DIV)andseveralchallengeandprizeprograms.Manyoftheseinnovatorshavecreatedsomeformoftechnologythattheysell

viafirmswithintheprivatesectorormodelsofdevelopmentinterventions,whichcanbescaledbygovernmentsorNGOs.

ThemajorityofCDR’sresearcherssitwithinacademicinstitutions,sooneoftheirprimaryprofessionalincentivesistopublishtheirworkinpeer-reviewedjournals.Ononehand,thisensuresthatworkproducedfromresearchfundedbyCDRisofhighquality.Ontheotherhand,thereisnodirectincentivetoensurethatthisworkimpactsthecountriesinwhichitisproduced,and


theeffortrequiredbyresearcherstoensuretheirresearchisseenbyrelevantpolicymakersmightbeprohibitiveifleftunsupported.

CDRrealizesthis,andthus,focusesitseffortsonloweringthiscost.TheLabarrangesforresearcherstopresenttheirresultsatUSAIDmissions,relevantgovernmentagencies,andtoothersin-countrythatmightbeabletousetheinformationproducedbyCDR-fundedresearch.Moreover,CDRhelpsresearchersreformattheirworkintopolicybriefsandotherformsthatwillbemoredigestiblefornon-technicalexperts.GiventheincentivesfacedbyCDR’sresearchers,asignificantfocusoftheCenteristosupportthe“consumption”anduseoftheresultsoftheresearchtheyfund.

USAIDencouragement,however,isnottheonlywaytoensureresearchimpactspolicymakers.AstudybytheKnowledgeSectorInitiative5interviewedpolicymakersacrossvariousministriesintheIndonesiangovernmenttobetterunderstandhowtheyusedresearchtosolveproblemstheyfacedasgovernmentofficials.Theyidentifiedanumberofinterestingfindings,includingthatpolicymakerstendedtousetheirinformalin-countrynetworksto–ofteninlocaluniversities–identifysourcesofexpertiseandresearch.Procurementrulesmakeformallyprocuringresearchdifficult,andmanyministrieswithoutabudgetforthismaynotbeabletodoso.6

Moreover,ministrieswithdirectbudgetallocationauthorityrelyonstatisticaldata,notfocusgroupsorothertypesofqualitativeresearch.Thoseministriesthatprovidehighlevelpolicyguidanceweremorelikelytoacceptconclusionsfromqualitativepolicyresearch.Themostcommonreasonpolicymakersengagedwithresearchwastoprovidecontext,whichtheauthorsdefineasoutliningtheunderlyingproblemsfacingaparticularplace.Thishelpedthemdefenddecisions,developstrategy,andprovideobjectivereasoningforwhatareultimatelypoliticaldecisions.Forexample,ifonepersonaskswhytheMinistrygavemoreresourcestoadifferentarea,thenthepolicymakercanpointtoobjectivedatathatdemonstratesagreaterneedinthatarea.

5 http://www.ksi-indonesia.org/files/1480577570$1$WFZL$.pdf

6 CDRhascreatedtwomechanismsforprocuringresearchthatcouldfillthisgap.Namely,RTACforshorttermresearchprojects(link)andLASERforlong-termresearchprojects(link)

7 Forexample,CDRworkswithUniversity-basedaccelerators,suchasSEADatDukeUniversity(link)

Thethreekeytake-awaysfromthisreporthowever,arethat(1) identifying researchers who are already connected to local policymakers is likely to increase the usage of that research,(2)thatresearch should focus on fundamental issues relevant to the country so policymakers better understand the context-aspecificprojectaimedatunderstandingwhethersomething“worked”isnotusefulunlessitprovidesinsightintotheunderlyingcausesoftheproblem.Forexample,thereportindicatesM&Eresearchwasonlyusedbythosepolicymakersallocatingfundsdirectly,notthosetryingtodevelophigh-levelpolicies.(3)Givenprocurementdifficultieswithinmanyministries,there is an unmet demand for research.Thekey,however,maybetoengagewithpolicy-makersintheselectionprocesssothattheygetthedatatheyneed.

CDIandCTPtakeabroaderviewofsupportastheirinnovatorsandentrepreneursproduceawiderrangeofproducts.Labsupportedinnovatorsmightneedlegalassistance,helpwithmarketanalysis,financialtechnicalassistance,oranyothernumberofbusinessadvisoryservices.Although,theseawardeesmight—intheory—beincentivizedtoseekeachofthesethingsthemselves,theymayfaceup-frontbudgetconstraintsortheymaylacksufficientinformationaboutcompetingadvisoryservicefirmstoensuretheygetthebestpossiblebusinesssupport.Giventhewidevarietyofpossibleservicesneededandhowidiosyncraticthoseservicesmaybe,theLabworkswithfirmsovertimedirectlyorviafinancial(i.e.investmentfunds,banks,MonetaryFinancialInstitutions)andnon-financial(i.e.incubators,accelerators,consultancies)7 intermediaries to strengthenweaknessesineachfirm’sstructureandgrowthstrategy.


SUPPORT TO RESEARCHERS AND FIRMS: WHAT THE LITERATURE SAYS

ResearchersTheauthorisnotawareofanyacademicresearchthatexaminestheeffectivenessofmultilateralorbilateraldonoragencysupporttoresearchers.

CDR’sprimaryformofsupportistoencourageresearcherstopresenttheirresultsinformatsmoreaccessibletopolicymakersandthereisliteratureonevidence-usebypolicymakersmorebroadly.However,thatliteratureisconceptual,theorizingwhypolicymakersshouldincorporateevidencewhenmakingdecisionsandsuggestingmodelsofhowandwhenpolicymakersuseevidence.

Davies(2015)—whichexemplifiesthisliterature—outlinesthreemodelsofevidenceuse.Thefirst,namedthePassive-DiffusionModel,assumesthatpublishingresearchfindingsissufficientforpolicymakersbecausetheyactivelyseekoutresearchandareabletounderstanditsimplications.Further,policymakersunderstandtheirrespectivefieldswellenoughtoknowwhichjournalsarecredibleandhowtointerprettheoryforapplieduses.Thismodelassumesahighleveloftechnicalknowledgebypolicymakers—onethatdoesn’tcomportwithtypicalexperiences.

Ifthismodel(Passive-Diffusion)werecorrect,thenUSAIDwouldonlyneedtofundresearch;itspublicationwouldbesufficientsincetheresearcher’sincentivetopublishisinternaltotheirhomeinstitutions’promotionstructures.

Thesecondmodel,calledtheActive-DisseminationModel,assumesthatthevolumeofresearchissovastthatsynthesisisrequired.Moreover,thesynthesisneedstobewrittenusingnon-technicallanguagesoanylaypersoncouldunderstandit.Thisallowspolicymakerstobetteraccesstheresearch,whichcanincreasethelikelihoodofitsuse.

CDR’suseof“evidence-to-action”grantsexemplifythis.Thesegrantsareprovidedtoresearcherstohold

meetingsorworkshopstodiscusstheirfindingswithpolicymakersormissionstaff,andtoencouragethemtowritepolicybriefsthatsummarizetheirresearchtoabroaderaudience.Itshouldbehighlightedthatthismodelofevidence-useassumesthatpolicymakersbothwantthebestevidenceandcandistinguishthisevidencefromothersources,whichmaybeoflowerqualitybutalsohavefacevalidity.

Thefinalmodel,knownastheCoordinated-ImplementationModel,assumesthatevidenceisincompetitionwithotherfactorsoftenpoliticalinnature.Itstatesthatacademicresearchmaybemorerigorousthanothersourcesofinformation,butnot“marketed”effectivelytoovercomecompetinginterests.Thismodelassumesthatevidenceneedstobeactivelypushedvianetworksandintermediarieswithconnectionstokeydecision-makersforseriousconsiderationbypolicymakers.

Thesethreemodelsofevidence-usehavebeenoutlinedbecausetheynicelyhighlightthetypesofsupportthatcouldbeprovidedbytheLabtoensurethattheresearchtheyfundisusedbypolicymakers.Ononeendofthespectrum,researchissimplyfunded,anditisassumedthatpolicymakerswillactivelysearchitoutanduseit.Ontheothersideofthespectrum,researchisseenasonepossiblesourceofinformationthathastocompetewithpolitically-backedinformation.

InthemiddleofthisspectrumsitstheapproachCDRhastakentothispoint,whichistolowerthecosttopolicymakersofusingresearchthroughpolicybriefsthatsummarizefindingsandworkshopsthatmakeresearchersandtheirworkmorereadilyavailabletopolicymakers.Thisapproachtriestomakeitassimpleaspossibleforresearchtobeconsumedandusedwithoutenteringintotherealmofdomesticpoliticsinthehomecountriesofthevariousprincipalinvestigators(PIs)fundedviaCDRprograms.


ThequestionremainsastowhetherthereareadditionalstrategiesthattheLabcanutilize,suchasdisseminationbeyondcurrentpolicymakerssoastoexposeabroaderaudienceinagivencountrytopolicy-relevantresultsmoresystematically.PossibilitiesincludeensuringthatcivilsocietyorganizationsareprovidedwithUSAID-fundedresearchbriefsandencouragingthepresentationofresultsinlocalacademicconferences.

Alternatively,theLabcoulddomoreatthestartto

8 Theseentrepreneursreceivedthetrainingaspartofaloanpackagesowentthroughthetrainingtoaccesscapital,whichallowedthestudytocapturebothentrepreneurswhowereenthusiasticaboutreceivingtrainingandentrepreneurswhoattendedsolelybecauseitwasarequirementtoaccesscapital.

identifywhichtypesofprojectsand/orresearchersaremorelikelytoshareideaswithpolicymakersatanylevel.RequiringsharingwithavarietyofpolicymakersasapreconditionoffundingcouldincreasetheinfluenceofUSAID-fundedresearch.SurveyingPIsfromcompletedprojectscouldhelpidentifyvariablesassociatedwithresearchersmorelikelytopursueopportunitiestopresenttheirfindingstopolicymakers;thatinformationcanthenbeincorporatedintotheselectionprocessforLab-fundedresearchgrants.

Entrepreneurs and InnovatorsIncontrasttotheprevioussection,thereisarobustliteratureonhowsupportingentrepreneursimprovestheirperformance.Itsoriginalpremiseexploredwhetherentrepreneursweresimplyaself-selectedgroupofmotivatedindividualswhoneededlittle,ifany,assistancetobesuccessfulorwhetherentrepreneurshipcouldbetaught(e.g.,KarlanandValvidia,2011).

Thethinkingwent:ifentrepreneurshipweresolelyaninnatecharacteristic,thenbusinesstrainingwouldproveineffective.Recentresearch,however,demonstratesthatassistancetargetingentrepreneurscanimprovefirm-leveloutcomes(e.g.,Drexler,Fischer,andSchoar,2014;Camposetal.2017);althoughthelevelofsuchimprovementdiffersacrossstudies(ForssandSchaumburg-Mueller,2009).

Inotherwords,supporttoentrepreneursworkssometimes,butfailsatothertimesforadifferentsetofpeople.Drexlerandhiscolleaguesfoundthattrainingusing‘rule-of-thumb’ratherthanmoretraditionalbusinessaccountingtrainingimprovedsmallbusinessperformance.However,thisimprovementwasonlyrealizedbyentrepreneurswhoenteredwiththelowestlevelsoffinancialliteracy.

Inarelated,butsomewhatdiscouragingfinding,KarlanandValvidia(2011)findthatbusinesstrainingimpactedentrepreneurswithlow levels of interestinthetrainingpriortoreceivingit.8Notethatbothofthesestudiesusedastandardizedcurriculumtoteachentrepreneursa

setofbusinessskillsthatprogramdesignersthoughteverybusinesswouldneed,regardlessoftheproduct,suchasbasicaccounting.

Sinceasubstantialportionofentrepreneurslikelyhavetheseskillsorhavebeenexposedtotheseconceptsataminimum,itshouldn’tbesurprisingthatimpactsareonlywithentrepreneurswhohavelowabilityorinterest.Theseskillsarerelativelystandardregardlessofcontext,sofindinginformationwouldnotbedifficultforhighlymotivatedentrepreneurs.

Camposandhiscolleaguestestadifferentkindofstandardizedprogram(Camposetal,2017).Ratherthanfocusingonaparticularskillneededbyallentrepreneurs,theypartnerwithapsychologisttoseewhetherapsychology-basedcurriculumtargetingmotivationcanimproveentrepreneurialoutcomes.Assumingeachbusinessoperatesinidiosyncraticcontextsandfacesuniquechallenges,thetrainingfocusesonbolsteringpsychologicaltraitsthathelpindividualsovercomeadversity,increaselevelsofcreativity,andrisk;thus,thetrainingshouldbemoreapplicabletoabroaderaudienceofentrepreneursthanoneaimedtoinstillaspecificsetofhardbusinessskills.

Thestudyfindsthisapproachtoentrepreneurialtrainingiseffective:entrepreneursincreasedprofits.Theauthorsthenexamineddifferentcausalpathwaysconnectingthetrainingtotheoutcomesandfoundtheinitiative-basedtrainingincreasedlaborinputs,capitalinputs,and


innovation,measuredasthenumberofdistinctproductssoldandthenumberofproductsthatweretheentrepreneur’sownidea.Finally,individualswhoreceivedthistrainingdidn’ttakeoutmoreloans,butthesizeofthoseloanswerelarger(i.e.,theyincreasedtherisktheytookon).Althoughthistrainingwasstandardinitsdelivery,itwasaimedatencouragingentrepreneurstotackletheirindividualproblemsheadonandresultedinimprovedoutcomesregardlessofentrepreneurtype.

Bruhn,Karlan,andShoar(2018)evaluateaprograminMexicothatsubsidizedmanagementconsultantstoworkwithindividualfirms.Theauthorsaimedtoexplorehowinvestinginwhattheytermed“managerialcapital”ratherthantraditionalcapitalcouldsupportsmallandmediumsizedfirmsgrowmorerapidly.Totheseauthors,managerialcapitalisthecombinationofskillsanddrivetoaddressobstaclestoafirm’sgrowth.Inthisstudy,firmswerepairedwithconsultantswhosejobwastoworkwiththefirmstoidentifyimpedimentstogrowthandsuggestchangesthatwouldaddresstheseimpediments.

Thefindingsarestriking.Employmentwithinfirmsandwagesincreaseacrosstheentiresampleoffirmsandfindheterogeneousimpactsonmanagerialpracticesacross

9 MakerereUniversitySchoolofPublicHealthResilientAfricaNetwork,“InnovationProjectsunderIncubation-Funded”.

areasincludingmarketing,long-termbusinessplanning,andaccounting.Theauthorsnote,however,thatgiventhewidevarietyofpathwaystoimprovedperformance,itisimpracticaltotesteachoftheseindividualareasasthemethodologicalframeworkoftheseeconomists—randomizedcontrolledtrials—wouldrequiretoomanytreatmentarmsandthesamplestopowereachareaareimpractical.

Toexplorethesevariouspathways,theory-basedmethodsofevaluationandresearch,suchasprocesstracingorcontributionanalysis,aremoreappropriateinhighlightingthecausalchainofeventsconnectingindividualizedconsultingtoindividualbusinessoutcomes.

Finally,theLab’sownSecuringWaterforFoodfinalevaluationfindssuccesswiththeirmodeloftechnicalassistancesupport,whichprovidesvoucherstoawardeesto‘pay’forservicesfromaTAfacility.WithinthecontextofUSAID,thisapproachisinnovativeandflexible.However,thefinalevaluationrecommendsevenfurtherflexibilitywithinthesystem,sothatinnovatorscanmatchwithservicestheyneedinatimelymanner(SWFFFinalEvaluation,p.35).

Building NetworksGeographicclusteringoffirmscanenableinnovationandentrepreneurshipwhenpositivespilloversexist.Whilemoreresearchisneededtounderstandwhetherpolicycaneffectivelyshapeclustersandultimatelyentrepre-neurialbehavior,twoconclusionsarepossible.First,localuniversitiescanimpactlocaldevelopmentandinnovation,andsecond,focusingonlargescaleemployerscancrowdoutstartups(Chatterji,Glaeser,andKerr2014).

Networkscanprovidevarioustypesofresourcestoentrepreneurs:money,information,credibilityinnewmarkets,andemotionalsupporttoencouragerisk.However,therearetradeoffsbetweentheirstructureandsize.Largernetworksproducebetteroutcomesintermsofaccessingresourcesfromothersinthenetwork,buttherearediminishingreturnsifthenetworkistoolarge.Moreover,afirm’scentralitytothenetworkimpactsoutcomes,withmorecentralfirmsaccessing

moreresources.Networksthathavelotsofweaktiesbetweenalargernumberoffirms,however,allowfirmstoaccessmorediverseinformation.Theseinformationspilloversareparticularlyprominentwhentheentrepreneurscomefrommultiplelocalities(Hoang andYi2015).

TheLabsupportsbothtypesofnetworks.Activities, likeGlobalInnovationWeek,bringtogetherhundreds ofinnovatorsacrossnumerousfieldstofacilitateconversationsandpotentiallyinformationspillovers. Thisisanexampleofalargernetworkwithweakerties.TheLabalsosupportsactivitiesliketheResilienceAfricaNetwork(RAN),aninnovationclusterheadquartered inKampala,Uganda.RANsupportsinnovationbyanaccelerationprogram,holdinginnovationchallenges,andaco-creationprogram.9 Whilesuccessfulinnovationclustershavehistoricallybeenanchoredbyuniversities


(Tan2006,Saxenian1996),suchclustersarerareinsub-SaharanAfrica(BrautigamandXioayang2011).

Asaresult,RANitselfisaninnovativenetwork-buildingactivitysupportedbyUSAID.TheLabhasalsosupported

attendanceatregionalconferencestoresearchersandmeetingsforgrandchallengeawardees.Inthelatterinstance,USAIDstaffstatedthatawardeesliketalking toandlearningfromeachother,consistentwiththeacademicresearchonthistopic.

DOCUMENTING LAB SUPPORT TO AWARDEESEIAinterviewedteamsfromacrosstheLabintheCenterforDevelopmentInnovation(CDI),CenterforTransformationalPartnerships(CTP),andCenterforDevelopmentResearch(CDR)todocumentthetypesofnon-monetarysupporttheyprovidetotheirawardees.

TheseinterviewstookplacebetweenDecember2017andMarch2018andincludedinterviewswithstafffromtheDevelopmentInnovationVentures,SecuringWaterforFood,andScalingOff-gridEnergyteamsinLab/CDI,thePartneringtoAccelerateEntrepreneurshipteaminLab/CTP,andtheHigherEducationSolutionsNetworkandPartneringforEnhancedEngagementinResearchteamsinLab/CDR.

Innovators,entrepreneurs,andresearchersattheLabworkacrossmanycontextstotackleawidevarietyofissuesandthusawardeesupporttakesmanyforms.Themostcommonformsofsupportrevealedfromtheseinterviewscanbegenerallycategorizedasfollows:

• Businessdevelopmentandmarketanalysis

• Buildingnetworksofinnovatorsandresearchers

• Marketingsupportandinformationdissemination

• M&Etodemonstratebroaderdevelopmentimpact

• Technicaldesign

• Reducingtheadministrativeburdenofworking withUSAID

Business Development and Market AnalysisBusinessdevelopmentandmarketanalysiscanbebrieflysummarizedasthebuildingupoftheinternalstructureof thebusiness,soithasafoundationtogrowand/ortheanalysisofcurrentandpotentialcustomers,competitors,andpoliciesthataffectthefirm’sstrategyandoperations.Thistypeofsupportisgenerallytargetedtowardinnovators andentrepreneurs,notresearchers.

ExamplesfromtheLabinclude:

• Encourageinnovatorstomovefromhand-writtenaccountbookstocomputerizedaccounts,anecessityforgrowth(CDI,CTP,CDR)

• Thinkaboutproductdiversification(CDI,CTP)

• Helpinnovatorsidentifynewmarketsegmentstheycantarget(CDI,CDR,CTP)

• Standardizeaccelerationsupportforentrepreneurswithlittlebusinessexperience(CTP,CDI)

• Preppingentrepreneursforinvestmentanddevelopingfinancialmodels(CTP)

• Agriculturalextensionservices(CTP)


Building Networks of Innovators and ResearchersBuildingnetworksofinnovatorsandresearcherscanbebrieflysummarizedasbothidentifyingawardeeneedsandlocatingpotentialpartnersorofficialsthatcouldhelpmeettheawardee’sneeds,aswellassupportinginstitutionsthatbringinnovatorsandresearcherstogethertoshareinformation,presentideas,andevenassistwithadditionalfunding.Thistypeofsupportisgearedtowardallawardees.


• Matchingresearchers—viabuyins—withmissionssoresearchershavesupportinginfrastructurein-countryandpotentiallyadditionalfundsfortheirwork(CDR).

• Introducingawardeeswithimplementingpartnerswhocanincorporateresearchorinnovationsintoprogramming(CDI)

• Accelerationprogramsusingacohortmodel(CDI,CTP)

• Matchingawardeestoadditionalfundingsources(CTP,CDI)

• Buildinginvestornetworks(CTP)

Marketing Support and Information DisseminationMarketingsupportandinformationdisseminationcanbebrieflysummarizedasassistingawardeeswithadvertisingtheirproductstobothconsumersandpotentialfundersorinvestors,providingaplatformforinnovatorsandresearcherstospeakwithconsumersoftheirwork,andhelpinginnovatorsandresearcherstranslatetheirinnovationsandresearchforabroaderaudience.Thistypeofsupportisgearedtowardallawardees.

ExamplesfromtheLabincludes:

• Smallgrantsandgeneralguidelines/toolkittoencourageresearcherstosummarizetheirresearchorinnovationforabroaderaudience(CDR,CDI)

• Arrangingforresultstobepresentedtolocalpolicymakers(CDR)

• Marketingandcommunicationssupportforinnovators(CDI)


M&E to Demonstrate Broader Development ImpactM&Etodemonstratebroaderdevelopmentimpactcanbebrieflysummarizedasassistingawardeestomorefullyspecifyatheoryofchangeandmorerobustdatacollectionplanassociatedwiththattheoryofchange.AwardeesarerequiredtohaveanM&Eplan,butmanyarenewtotheseactivitiessothisrequiresassistancefromLabstafftomoreclearlyspecifybroaderdevelopmentgoals.Thistypeofsupportisgearedtowardallawardees.


• Helpsawardeesidentifylearningquestionsandatheoryofchangegearedtowardimpactbeyondprofit(CDI)

• HelpsdevelopM&Eplanstoshowsociallyconsciousinvestorsbroaderimpacts(CDI,CTP)

Technical DesignTechnicaldesigncanbebrieflysummarizedastheonlytypeofsupportthroughwhichtheLabprovidesdirectassistancetoimprovetechnologicalprototypes(i.e.,wheretheLabhelpsinnovatorsimprovethedesignoftheirproducts).ThisisdonebyCDR’sHESNawardeeResilientAfricaNetworkandselectCTPgrantees.


• Redesignproductssotheycanbemassproduced;someinnovatorscreatedtheirtechnologyinametaphorical—butsometimesliteral—garages.Theproductionoftheseinnovationscansometimesbesubstantiallyincreasedwithchanges(CDR,CTP).

• Suggestmodifications—especiallybyusingdifferentmaterials—todecreasethecostoftheinnovationandincreasethelengthofitsusefullife(CDR).

Reducing the Administrative Burden of Working with USAIDReducingtheadministrativeburdenofworkingwithUSAIDcanbebrieflysummarizedascollatinginformationaboutUSAIDrequirementsforawardeesinoneplacesoawardeesareawareUSAIDrequirementstoensurecompliance.Thistypeofsupportisgearedtowardallawardees.

ExamplesfromtheLabInclude

• Welcomepacketsforawardeeswithexpectationsandrequirementslaidout(CDI)

• IntroductiontoUSAIDwebinar(CDI)


Improving the Technical Design of Educational InstitutionsImprovingthetechnicaldesignofeducationalinstitutions.Whilethistypeofsupportisnotlistedintheopeningtypology,itisworthnotingthattheHESNteamwithinCDRalsospeakswithadministratorsinuniversitiesindevelopingcountriestohelpthemdesignhowtheymanagetheirownfacultybetter.

ExamplesfortheLabinclude:

• FundedMichiganStateUniversitytoholdmeetingswithauniversityinMalawitoencouragethemto providegrantstofacultyfortheirownresearchratherthantryingtomicromanagefacultyresearchandteaching(CDR).

HOW SUPPORT IS PROVIDED

Non-financialsupportattheLabtakesplacethroughbothformalandinformalchannels.TwoGrandChallengesnicelyexemplifyeachendofthisspectrum.Ononeside,theSecuringWaterforFood(SWFF)GrandChallengeusesaformalmodelofawardeesupport.SWFFsetupatechnicalassistance(TA)facility-fundedbytheLabanditspartners-whosepurposeistodiagnosegapsinaninnovator’sbusinessmodel.*Oncegapshavebeenidentified,theTAFacilityconnectseachinnovatortoanadvisoryservicesfirmtoassisttheinnovatorinaddressingthosegaps.Approximately105–110SWFFinnovatorshavebeenofferedthissupport,includingeveryinnovatorineverycohortsincetheopeningoftheTAFacility.

Ontheinformalendofthespectrum,theScalingOff-GridEnergy(SOGE)GrandChallengeprovidessupportserviceswithfewerformalchannels.TheSOGEteamworkswithitsawardeesonaone-on-onebasistoidentifyobstacles.Then,theyeitherprovidedirectsupportorlookacrosstheLabandotherSOGEPartnersforthesupportthatmeetstheneedoftheawardee.

ComparedtoSWFF,SOGEisamuchyoungerGrandChallengeatthetimeofwritingwithtwocohortsofseveninnovatorseach(14totalawardees),whohavebeendirectlyfundedandmanagedbytheSOGEteamatUSAID.SOGEisaplatformforitspartnerstocoordinateresourcesandshareexpertise,andSOGEleveragesitspartnersandtheirconnectionsacrosstheoff-gridsolarmarkettoprovidethedifferentkindsofsupportthatcompaniesneed.Thislessformalapproachworkswith14awardees;however,itraisesthequestionastowhetheramoreformalstructureforprocuringTAwouldbeneededweretheSOGEportfoliotoexpandinscopeorscale.

ThekeytakeawayfromtheseexamplesisthatLabsupportisquiteidiosyncratic.Evenformalmechanisms,suchastheSWFFTAfacility,diagnosespecificissueswithindividualfirmsandcreateindividualizedworkplanstoaddresstheseissues.Inasense,thistypeofsupportresemblesprivateconsultingmorethanitdoestraditionalbusinesstraining.InSWFF’scase,theuseofthismodelwasintentionalaspriorattemptstoprovidegeneralbusinesstrainingwasdeemedlessusefulbytheirawardees.*FormoreinformationontheSWFFTAfacility,seethe2015SWFFAnnualReport.


FURTHER READINGUSAID REPORTS AND DOCUMENTS

Amulya,Joy,JamesChung,StephanieMonschein,andCharuVijayakumar.2016.Midterm Performance Evaluation of the Higher Education Solutions Network (HESN) (link).

Björklund,Gunilla,KenCaplan,DirkVanEsbroeck.2016.Mid-Term Review of Securing Water for Food: A Grand Challenge for Development (link).

Benschoter,Eric,CarolynFonseca,DeborahA.Caro,CaitlinNordehn,andIngridOrvedal.2017.Mid-Term Evaluation of the Partnerships for Enhanced Engagement in Research (PEER) Program (link).

Glass,Sarah.2018.AcceleratingEntrepreneurs:InsightsfromUSAID’SSupportofIntermediaries(link).

Hemson,David,KenCaplan,StephanieMonschein,NohemiVoglozin.2018.FinalPerformanceEvaluationofSecuringWaterforFoodGrandChallengeforDevelopment(link).

McMahan,Ku.2015.SWFFAnnualReport(link).

USAID.2019.TheoriesofChange:HighGrowthSmallandMediumEnterpriseDevelopment(link).

ACADEMIC WORKS

Acemoglu,Daron,UfukAkcigit,andWilliamKerr.2016.“InnovationNetwork.”NBERWorkingPaperNo.22783(link)

Blase,Melvin.1968.“Discussion:WhyOverseasTechnicalAssistanceisIneffective.”American Journal of Agricultural Economics 50(5):1341–1344(link)

Brautigam,DeborahandStephanKnack,2004.“ForeignAid,Institutions,andGovernanceinSub-SaharanAfrica.”Economic Development and Cultural Change 52(2):256–85(link)

Brautigam,DeborahandTangXiaoyang.2011.“AfricanShenzhen:China’sspecialeconomiczonesinAfrica.” The Journal of Modern African Studies 49(1):27–54(link)

Bruhn,Miriam,DeanKarlan,andAntoinetteShoar.2018.“TheImpactofConsultingServicesonSmallandMediumEnterprises:EvidencefromaRandomizedTrialinMexico.”Journal of Political Economy 126(2):635–687(link)

Campos,Francisco,MichaelFrese,MarkusGoldstein,LeonardoIacoVone,HillaryC.Jophnson,DavidMcKenzie,andMonaMensmann.2017.“TeachingpersonalinitiativebeatstraditionaltraininginboostingsmallbusinessinWestAfrica.”Science 357(6357):1287–1290(link)

Chatterji,Aaron,EdwardGlaeser,andWilliamKerr.2013.“ClustersofEntrepreneurshipandInnovation.”In Innovation Policy and the Economy, Volume 14,editedbyJoshLernerandScottStern.0129–166.UniversityofChicagoPress(link)

Davies,Philip.2015.“Gettingevidenceintopolicyandpractice.”Journal of Development Effectiveness 7(4):393–401(link)

Drexler,Alejandro,GregFischer,andAntoinetteSchoarSchoar.2014.“KeepingItSimple:FinancialLiteracyandRulesofThumb.”American Economic Journal: Applied Economics 6(2):1–31(link)

Easterly,William.2007.“AreAidAgenciesImproving?”Economic Policy 22(52):635–678(link)

Forss,KimandHenrikSchaumburg-Mueller.2009.Synthesis of Evaluations on Support to Business Development. ReportfortheMinistryofForeignAffairsDenmark,Danida2009/5(link)

Godfrey,Martin,ChanSophal,ToshiyasuKato,LongVouPiseth,PonDorina,TepSaravy,TiaSavora,andSoSovannarith.2002.“TechnicalAssistanceandCapacityDevelopmentinanAid-dependentEconomy:TheExperienceofCambodia.”World Development 30(3):355–373(link)

Hoang,HaandAnYi.2015.“Network-basedResearchinEntrepreneurship:ADecadeinReview”,Foundations and Trends in Entrepreneurship 11(1):1–54(link).

Karlan,DeanandMartinValvidia.2011.“TeachingEntrepreneurship:ImpactofBusinessTrainingonMicrofinanceClientsandInstitutions.The Review of Economics and Statistics 93(2):510–527(link)

Loomis,RalphA.1968.“WhyOverseasTechnicalAssistanceisIneffective.”American Journal of Agricultural Economics 50(5),1329–1341(link)

Saxenian,AnnaLee.1996.“Inside-Out:RegionalNetworksandIndustrialAdaptationinSiliconValleyandRoute128.”Cityscape: A Journal of Policy Development and Research 2(2):41–60(link).


Tan,Justin.2006.“Growthofindustryclustersandinnovation:LessonsfromBeijingZhongguancunSciencePark.”Journal of Business Venturing 21(6):827–850(link).

Williams,Peter.1964.Technical assistance: a factual survey of Britain’s aid to overseas development through technical assistance. London:OverseasDevelopmentInstitute(link)

Lab Evaluation, Research, and Learning Plan Evidence Briefs and Deep Dives were authored by Joseph Amick (Social Solutions), Matthew Baker (Dexis Consulting Group), Shannon Griswold (USAID), and Jessica Lucas (Apprio, Inc.). Additional design and editing support were provided by Tiara Barnes (Apprio, Inc.), Ian Lathrop (Dexis Consulting Group), and Megan Smith (Dexis Consulting Group). Miya Su Rowe provided the graphic designwith revision by Bic Vu (Apprio, Inc.).

Opinions presented in the document do not necessarily ref lect the views of the U.S. Agency for International Development or the U.S. Government. Feedback and questions may be directed to the Lab’s Off ice of Evaluation and Impact Assessment at [email protected].

deep dive supporting innovators, entrepreneurs, and researchers€¦ · this evidence deep dive is...

Documents