Private‐sector investment in R&D: a review of policy options to promote its growth in developing‐country agriculture

Abstract

Technological innovation is vital to enhancing agricultural productivity and reducing poverty in many developing countries. Public investment in research and development has historically driven technological change in agriculture; however, recent trends suggest that the private sector may play a larger role in the future. Although there is optimism about the private sector's ability to generate new technologies relevant to developing-country agriculture, current levels of private investment remain low. The authors examine the determinants of private R&D investment in developing-country agriculture, the market, and institutional constraints that limit the growth of investment, and incentives that can promote more rapid investment growth. [EconLit classification: O300, Q160]. © 2010 Wiley Periodicals, Inc.

Private Sector Development in West Africa

“…One way for stimulating and facilitating R&D may be through the establishment of science parks that are furnished with the relevant infrastructure and technology to allow further research and the development of new innovations, which will boost the productivity of business operating in Africa. Such science parks may also flourish into knowledge hubs crucial to the continent's sustainable growth as observed elsewhere (confer, Naseem et al 2010). …”

“…Combined, poor technology absorption capacity and the consequential technology gap (Naseem et al 2010) limit the productive capacities of local enterprises, and eventually retard national growth. As Porter (1990) highlights in his account of national competitiveness, a nation's standard of living relies upon the ability of companies to achieve and boost high productivity on a sustainable basis.…”

Background Paper: Research and Development and Extension Services in Agriculture and Food Security

“…With diminished investments in research over the years, there has been a clear recognition that technological change can no longer be advanced solely by public sector investment in agricultural R&D (Naseem, Spielman, and Omamo 2010). The potential role that the private sector can play has now become a topic for serious consideration.…”

Why agronomy in the developing world has become contentious

“…The effects of these programmes on agricultural research were generally more profound where research systems were smaller and weaker, as is generally the case in sub-Saharan Africa. Many developing countries where agriculture is relatively commercialised have seen increasing private sector investment in agricultural research (Naseem et al, 2010). This has forced the public sector -including the CGIAR -to re-frame its role in terms of the provision of 'public goods' (Anderson, 1998;Gardner and Lesser, 2003;Harwood et al, 2006;Lele and Gerrard, 2003).…”