iriba findings: embrapa & new challenges for public r&d
TRANSCRIPT
New challenges for public research organizations in agricultural innovation in
developing economies: Evidence from Embrapa in Brazil’s soybean industry
Paulo N. FigueiredoBrazilian School of Public and Business Administration (EBAPE)
at the Getulio Vargas Foundation (FGV), Brazil
Columbia Global Centre, Rio de Janeiro, 2 December 2016
This work is concerned with the characteristics of technological capabilitiesfor agricultural innovation in indigenous public research organisations indeveloping economies.
This issue is examined in the context of the Brazilian Corporation forAgricultural Research (EMBRAPA) and its contribution to innovativetechnological capability accumulation in the soybean industry.
Focus
• Demand for agricultural products faces an unprecedented increase, asthe world’s population is expected to reach 9 billion by 2050.
• Most of this population will reside in developing countries, have higherincomes and desire a richer diet. By 2050, there will be a 35% increasein food demand, notably from China, India, other Asian countries andAfrica.
• However, worldwide agricultural productivity growth has been slowing:annual growth is estimated at only 1% over the next two decades, muchslower than historical trends.
• Meeting food demand in 2030 will require an additional 175 million to220 million hectares of cropland
• By 2050, climate change is expected to cause water scarcity and seriousdeclines in yields of most important crops in developing countries,particularly Africa and South and Central Asia as well as large foodproducers such as Brazil.
• By 2070, in Brazil, there will be significant damage to crop species suchas corn, rice, beans, cotton, sunflower and cassava, and soybean lossesmay reach 40%. Climate change will lead to price increases foragricultural crops such as rice, wheat, maize and soybeans.
• Furthermore, in a more optimistic scenario, by 2050, the numbermalnourished children is expected to range from 76 million to 84million, depending on the extent of climate change.
Over the past several decades, effective efforts in technological innovation haveplayed a major role in increasing agricultural productivity and food security. Insome developing economies, governments have implemented relevantagricultural innovations through their indigenous public research agriculturalresearch organisations.
However, innovative activities in agriculture have become increasinglyinterdependent and collaborative. Additionally, multinational enterprises (MNEs)have played a major role in agricultural innovation in certain developingeconomies
This work addresses some of the new challenges for indigenous public researchorganisations in the light of increasing food demand and greater complexity ofagricultural innovation management. This issue is addressed herein through anempirical examination of the Brazilian Corporation for Agricultural Research(EMBRAPA), a public research organisation, from the standpoint of itstechnological capabilities for innovative activities in the soybean industry
Zero Tillage is among the most important agricultural technologiesadopted in Brazil over the last 50 years: it reversed soil degradation,enabled the expansion of agriculture into marginal areas (notablythe Cerrados), boosted farmers’ profitability and increased Brazil’sagriculture competitiveness.
Innovative Activities: Implementation of Zero Tillage in Brazil’s Savanah (or ‘Cerrados’)
5
10
15
20
25
Mill
ion
s o
f H
a
32
EMBRAPA develops a Brazilian ZT package, with input from UK company ICI
ZT technology disseminated in the Mid-West and Cerradosregions
Expansion of ZT into large scale farms
Expansion of ZT into small scale farms
Phase 1 1974 - 1979
Phase 21980 - 1990
Phase 31991 - 2000
Phase 42001-2012
Evolution of zero tillage implementationin Brazil (1974-2012)
Development of new soybean cultivars
Specifically, during the early 1970s, EMBRAPA Soybean engaged in thedevelopment of new soybean cultivars adapted to Brazil’s soil and climateconditions.
During the 1980s, due to the spread of disease (e.g., cancer stem, the cystnematode and powdery mildew bacterial pustule), EMBRAPA intensified itsefforts to develop new cultivars. The highly ‘latitude sensitive’ soybeanvarieties flourish in the tropics’ shorter day length and mild, wet climate.
From the early 1970s to the mid-2000s, EMBRAPA developed more than300 new cultivars specific to different regions of Brazil.
0
500
1,000
1,500
2,000
3,000
3,500
1st generation of soybeanscultivars
1970-1989
Note: *RR = Roundup Ready with Monsanto
SoybeansProductivity
(Kg/ha)
2,500
2 nd generation of soybeanscultivars
1990-2000
3 nd generation of soybeanscultivars
2001-2012
Embrapa BR1BR 6 (Nova Bragg), 13 (Maravilha), 14 (Modelo), 16, 23, 24, 29 (Londrina), 30ParanagoianaDoko, CristalinaTropical, Timbira
BR 36, 37, 38Embrapa 1 (IAS 5 RC),4 (BR 4 RC), 48, 58, 59, 60, 61, 62,
BRS 132, 133, 134, 135,
136, 155, 156, 157,183,184,185
GM
BRS Favorita RR*, Valiosa RR’, Silvânia RR’, Baliza RR’, 243RR, 244RR, 246RR, Charrua RR, Pampa RRCultivance(with BASF)
BRS 212, 213, 214, 215, 216, 230, 231, 232,
233, 239, 240, 241, 242, 243,244, 245, 246, 247, 252, 255,256,
257, 258, 259, 260, 261, 262, 263, 266BRS Macota, Torena , Raimunda, Tianá, Carnaúba, Pala, FEPAGRO 23, Cambona, Candiero, Invernada, BRS Candeia, Raiana, Sinuelo, TebanaBRSGO Caiapônia, Chapadões, Ipameri, Amaralina, Indiara, Raissa, Mineiros, laraBRSMG 250 [Robusta]
1,140
1,720 1,750
2,400
2,950
3,200
World record
Some examples of developed new cultivars and productivity increases.
2008 2009 2010 2011 2012 Total
Database, software biologic collection and scientific methodologies 10 7 4 8 9 38
Cultivars generated/launched 5 20 15 10 15 65
Cultivars tested/recommended 7 11 16 11 9 54
Agricultural feedstock, agricultural practice/process 6 1 9 4 2 22
Total 28 39 44 33 35 179
Developmemt of technologies, products and processes at EMBRAPA Soybean
Source: Embrapa Soybean (2013).
Technological Capabilities Underlying Innovative Activities
The innovative activities described in the previous section reflecttechnological capabilities accumulated by EMBRAPA Soybean.
These technological capabilities reside in the physical systems andprofessionals of the National Centre of Soybean Research (CNPSo), knownas EMBRAPA Soybean. Created in the early 1970s, it is located in the stateof Paraná, Southern Brazil.
By 2012, the CNPSo and its Technological Nuclei of Seeds and Grains wereupgraded into five laboratories, acclimatised chambers, and trainingfacilities.
Activities/participants Crops
2002/2003 2003/2004 2004/2005
Demonstration units 92 78 89
Field days 77 69 84
Number of participants 68,552 84,554 97,859
Source: Embrapa Soybean.
Evolution of Field Days for soybean in Southern Brazil
Inn
ova
tive
act
ivit
ies
• Increased level of inter-organizational management of multiple technological capabilities for innovativeactivitities
• Increased level of difficulty for transferability of technological capability for innovative activitites
Innovative activities
Relatively complex changes based on the adaptation of existing technologies based on informal or not management R&D (e.g., implementation of ZT technology in the mid – west region and Cerrados; Cross –breeding based on genotype molecular makers.)
Innovation activity close to the international technological frontier (e.g., breeding based on phenotype and genotype selection; development of new agriculture process).
World class innovation activities that advance the technological frontier and create new technological segments (e.g., develops of latitude sensitive soybeans based on cross breeding (genomic selection; mutation (molecular biology) and genetic engineering); developer of new versions to the world agricultural processes.)
Minor adaptation which are mostly experience-based and novel to the organization or part of (e.g., Basic adaptation agricultural process seed as ZT suit regional needs) Cross -breeding based on phenotypic selection.
Basic level Intermediate level World leadingAdvanced level
EMBRAPA Soybeans’ external organizational environment
EMBRAPA Soybeans’ internal organizational environment
EMBRAPA SOYBEAN’S
TECHNOLOGICALCAPABILITIES
Tech
no
logi
cal
cap
abili
tie
s
Other public organizations
related directly or indirectly to agricultural
research
Subsidiaries of MNEs
Local federal universities and
research institutes
International universities
and research institutes
Other private organizations
related directly or indirectly to
agricultural
Local state-level universities and
research institutes
State-level organizations
for agricultures research
Professionals’ skills and qualifications
Techno-physical systems
Representation of EMBRAPA Soybean’s technological capabilitites
Inter-organizational arrangements
This article has explored the main characteristics of the technological capabilitiesrequired for innovation and productivity growth in agriculture and the role of indigenousresearch organisations in developing economies. The article has empirically explored thisissue for the case of EMBRAPA in Brazil’s soybean industry.
To analyse this issue, the article has drawn on a robust conceptual framework thatincludes a comprehensive perspective on innovative activities and correspondingtechnological capabilities from the viewpoint of latecomer organisations. By adopting acomprehensive approach to both technological and innovative activities that goesbeyond standard proxies used in the mainstream innovation literature, the article takes anuanced view of the characteristics of technological capabilities of innovative activitieswithin the soybean industry from the standpoint of EMBRAPA.
The article suggests that the technological capabilities accumulated at the level ofEMBRAPA Soybean, which have played a decisive role in innovative activities underlyingBrazil’s achievement of world-leading soybean yields, vary across different technologies,diverse in terms of levels of novelty and complexity and inter-organisationally distributed.However, these technological capabilities are subject to weakening and evendisappearance. Although these capabilities are intrinsic to the context in which they havebeen developed, they are transferable.
Given the developing world’s unprecedented demand for food and increasedinterdependency of the innovation process, indigenous public research organisations, suchas EMBRAPA, are expected to play an even more active but complementary role inagricultural innovation in developing economies over the next decades. To achieve this,these organisations will need to avoid the weakening and loss of existing technologicalcapabilities as they seek to develop new types of technological capabilities for newinnovative activities. They will also have to learn how to manage a multiplicity of types andlevels of technological capabilities suitable to increasingly inter-organisationally de-composed innovative activities. Specifically, they must learn how to explore synergies withmultiple partners as sources of innovative technological capability development. This isimportant not only for crops that compete in international markets but for crops commonin family-based farming.
Furthermore, in light of the challenging scenarios of increased food demand andconstraints, agricultural research organisations in developing economies should exploreopportunities for transfer of their technological capabilities. Therefore, effective investmentin strengthening their existing innovative capabilities and creating new ones should rankhigh on the agendas of managers and policy makers in developing economies.
Empraba P&D and TT
Suppliers
ATER organizations
Educational institutions
Credit institutions
Organization of farmers
and communities
Institutions and
government agencies
Regional and international organizations
Non-governmentalorganizations
Researchinstitutites
Embrapa’s partnerships for technology transfer
Embrapa’s partnerships for technology transfer
Figueiredo, Paulo N. (2016). New challenges for public Research organizations in agricultural innovation in developing economies: Evidence from Embrapa in Brazil's soybean industry. The Quarterly Review of Economics and Finance, v. 62, p. 110-126
The complete study is published in: