Agricultural Knowledge and Innovation Systems in Transition a reflection paper

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1 Agricutura Knowedge and Innovation Systems in Transition a refection paper Standing Committee on Agricutura Research (SCAR) Coaborative Working Group AKIS Research and Innovation

2 This report shoud be cited as: EU SCAR (2012), Agricutura knowedge and innovation systems in transition a refection paper, Brusses. Discaimer This pubication does not necessariy refect the views of the European Commission or the authorities in the European Research Area. Nor does it anticipate their future poicy in this area. Its content is the soe responsibiity of the coaborative working group. Information on the pubisher: EUROPEAN COMMISSION Directorate-Genera for Research and Innovation Directorate E Biotechnoogies, Agricuture and Food Unit E4 Agricuture, Forests, Fisheries, Aquacuture Contact person: Mr. Barna Kovacs E-mai: Barna.Kovacs@ec.europa.eu Europe Direct is a service to hep you find answers to your questions about the European Union. Freephone number (*): (*) Certain mobie teephone operators do not aow access to numbers or these cas may be bied. More information on the European Union is avaiabe on the Internet ( Cataoguing data can be found at the end of this pubication. Luxembourg: Pubications Office of the European Union, 2012 ISBN doi: /34991 European Union, 2012 Reproduction is authorised provided the source is acknowedged. Printed in France Printed on eementa chorine-free beached paper (ecf)

3 AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS IN TRANSITION - a refection paper Standing Committee on Agricutura Research (SCAR) Coaborative Working Group on Agricutura Knowedge and Innovation Systems (CWG AKIS) Brusses March 2012

4 AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS IN TRANSITION a refection paper SCAR-Coaborative Working Group AKIS 117 pp., fig., tab., app. The European Union s Standing Committee on Agricutura Research (SCAR) is mandated by the Counci to pay a major roe in the coordination of agricutura research efforts across the European Research Area (currenty composed of 37 countries). This incudes questions of advisory services, education, training and innovation. The SCAR instaed a Coaborative Working Group of civi servants from the European Commission and the member states to refect on Agricutura Knowedge and Innovation Systems. Innovation is an important chaenge for European agricuture, but itte is known about the performance of the Agricutura Knowedge and Innovation Systems (AKIS). This report gathers experiences from different countries and regions. These systems are very different between countries, regions and sectors. Athough they are changing, there is no guarantee that they are fit to answer the chaenges posed by the need to increase productivity and sustainabiity in agricuture and food production. ISBN doi: /34991 This report shoud be cited as: EU SCAR (2012), Agricutura knowedge and innovation systems in transition a refection paper, Brusses. Discaimer This pubication does not necessariy refect the views of the European Commission or the authorities in the European Research Area. Nor does it anticipate their future poicy in this area. Its content is the soe responsibiity of the Coaborative Working Group. Information on the pubisher: EUROPEAN COMMISSION Directorate-Genera for Research and Innovation Directorate E Biotechnoogies, Agricuture and Food Unit E4 Agricuture, Forests, Fisheries, Aquacuture Contact person: Mr. Barna Kovács E-mai: barna.kovacs@ec.europa.eu

5 Contents Preface...5 Executive summary...7 S.1 Key message...7 S.2 Compementary findings...8 S.3 Background INTRODUCTION Innovation by tradition Introduction to the Standing Committee on Agricutura Research (SCAR) The SCAR and Agricutura Knowedge and Innovation Systems (AKIS) Background of the issue regarding AKIS Working methods of the Coaborative Working Group (CWG) Introduction to the report INNOVATION POLICY: THEORY AND EU INITIATIVES Some theoretica notions on innovation poicy The functions of a knowedge and innovation system The organisation of a knowedge and innovation system Current EU innovation poicy and the ink with theory THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Summary Definitions of AKS and AKIS AKIS as picture The drivers for the transition from AKS to AKIS The main actors invoved The main critics on the sub-systems AKIS as a system, network or hybrid? AKIS, innovation and transition AKIS and innovation poicy Recent deveopments CONCEPTS OF SOCIAL INNOVATION Summary Introduction Defining socia innovation Socia innovation in agricuture and rura deveopment Success and faiure of socia innovation in rura deveopment Knowedge gaps and research questions Concusion...59

6 4 C O N T E N T S 5 EXPERIENCES IN THE MEMBER STATES Introduction AKIS and its actors AKIS dynamics Incentives AKIS poicy Monitoring of AKIS Concusions FORESIGHT Introduction The current economic situation The SCAR s third foresight Foresight on AKIS REFLECTION AND RECOMMENDATIONS Introduction Seven major findings on AKIS Refections on innovation The roe of Europe Foow up of the CWG References Appendix 1 The making of - incuding a ist of participants in activities of the Coaborative Working Group...115

7 5 Preface Innovation is much taked about these days, and the European Commission as we as member states in the European Research Area are designing and impementing poicies to promote innovation as a method to improve abour productivity and the competitive position in a rapidy changing word. This aso invoves the agricutura sector and food production. Seen the resource constraints and the need to gobay feed 9 biion peope in 2050 foresights have argued that more food shoud be produced but that at the same time production shoud become more sustainabe regarding peope, panet and profit. This cas for more investments, system innovation and a transition. These deveopments raise the question whether the current Agricutura Knowedge and Innovation System (AKIS) is in optima shape to meet those chaenges. Answering that question is not easy. The European Agricutura Knowedge and Innovation Systems and their recent changes are not we documented or monitored. This caused the Standing Committee on Agricutura Research (SCAR) to set up a Coaborative Working Group (CWG) with a mandate to review inks between knowedge and agricutura innovation in Europe. The mandate incuded three expectations: a] that the work woud provide a starting point to estabishing a European monitoring device of the AKIS structures and their evoution, a cruciay necessary too for designing and evauating AKIS poicy formation and impementation, in the perspective of the chaenges ahead; b] that the findings of the working group coud be interesting to the European Commission, in particuar in view of its report on the Farm Advisory System, since advisory and extension services are ikey to pay a significant roe in the deveopment of any future European agricutura knowedge system and c] that the process woud provide an incentive for member states to refect on the organisation of their own AKIS and to benchmark with other countries. Over the ast two years the Coaborative Working Group had an interesting and peasant innovation journey which has resuted in the refection offered in this report. The content is the responsibiity of the Coaborative Working Group. We think it is important to share these resuts with a broader audience. However we aso consider it to be work in progress. SCAR has agreed to our recommendation to foow up this Coaborative Working Group with a new one with an updated mandate. We woud ike to take the opportunity to thank SCAR for their confidence in our work. We thank the experts for their input and the European Commission for financing them. We thank the members of the Coaborative Working Group for their active participation, and especiay those acting as work-package eaders, writing parts of this report, organising stimuating meetings and organising the conference in March 2012 where this report is presented. More detais are given in Annex 1. May this report be usefu as a sma buiding bock in meeting the chaenges that our European agricutura and food system faces. Pasca Bergeret Krijn J. Poppe Co-chairs of the CWG

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9 Executive summary S.1 Key message Innovation is an important chaenge for European agricuture, but itte is known about the performance of the Agricutura Knowedge and Innovation Systems (AKIS). This report contributes towards this knowedge, as it reports on experiences from different countries and regions. The systems are very different between countries, regions and sectors. Athough they are changing and diversity is usefu in innovation and transitions, there is no guarantee that they are fit to answer the chaenges posed by the need to increase productivity and sustainabiity in agricuture and food production. Different parts of AKIS, such as education, extension and research face different chaenges. They are aso governed by different incentives, which can be probematic for synergy and cooperation within an AKIS. Education is often weaky connected to research, extension and business. Appied research is often reviewed on scientific output, much ess on practica reevance. Networking and cooperation between research and extension or farmers groups is crucia and to be promoted. Agenda setting by farmers and food business is more important than just more research dissemination. We therefore advocate a distinction between sciencedriven research and innovation-driven research in the motivation of research. Programming, farmer/business invovement and the roe of the EU are quite different in both types (Tabe S1). By taking this difference in motivation into account, research poicy and management coud be improved. Tabe S.1 Two types of motivation for research Aspect Science driven research Innovation driven research Incentive to program a topic Participation of users Emerging science that can contribute to soving a societa issue (or a scientific question) In demonstration phase / via research dissemination An issue / probem in society that can be soved by new research, or a new idea to sove an existing issue In agenda setting, defining the probem and during the research process Quaity criteria Scientific quaity Reevance (for the sector or a region) Focus Research organisations Networks of producers and users of knowedge Diffusion mode Linear mode System (network) approach Type of government poicy Science / Research Poicy Innovation Poicy Economic ine of thinking (see tabe 2.1) Finance Macro-economics To a arge extent pubic money: more specuative and arge spi over effects Systems of innovation Pubic-private partnerships very possibe / advantageous

10 8 E x e c u t i v e s u m m a r y The roe of the EU Typica EU exampes Type of research Efficiency of scae (member states often too sma), smart speciaisation between member states, create European research market with harmonisation of hard- and soft infrastructures Horizon 2020, FP7, ERC, some ERAnets, Joint Programming Initiatives Interdiscipinary with absorption capacity in AKIS (to work with materia science, ICT, chemistry etc.). Stimuate interaction and earning in Europe between nationa/regiona AKIS. Enabe in CAP innovation by networks with farmers CAP: European Innovation Partnership, LEADER, European Technoogy Patforms, EIPs, some ERAnets Transdiscipinary and transationa with cose inertactions. Coherent poicies regarding AKIS are scarce, monitoring of innovation and innovation systems is neary absent and conceptuay chaenging. This suggests there is room for improved, coherent poicy making in member states and in the European Union / Research Area. There are eements in the European Innovation Scoreboard, the Community Innovation Survey and the Farm Accountancy Data Network that coud be a starting point. It aso impies possibiities for earning between member states (regions) at a European scae a process that coud be faciitated by the EU. The Common Agricutura Poicy (CAP) shoud use parts of its budgets to encourage innovationdriven research with empowerment of (groups of) farmers and coud pay a roe in exchange of knowhow in Europe. As the buk of innovation-driven research is regiona, the EU s Horizon2020 coud focus on science-driven agricutura research and organise smart speciaisation (reated to socia chaenges): there are huge chaenges that ca for more investment in agricuture where at the same time government budgets are becoming very tight. Science driven agricutura research is not ony science for science (as carried out by the European Research Counci) but aso science for competitiveness and for society, inked to socia issues (Tabe S1). The inkage of Horizon2020 and the CAP shoud guarantee the coaboration between sciencedriven and innovation-driven research. S.2 Compementary findings AKIS is a usefu concept to describe a system of innovation, with emphasis on the organisations invoved, the inks and interactions between them, the institutiona infrastructure with its incentives and the budget mechanisms. Athough the components Extension (Farm Advisory) system, Education and Research are often stressed, it is important to reaise that there are many more actors in the food chain that directy infuence the decision making of farmers and their innovations (figure S.1).

11 9 Figure S.1 Actors in the AKIS directy reevant for agricutura innovation in the food chain Accountants Comm. services Banks Ag. press NGOs Input suppiers Farmers Food processors Retaiers Consumers Extension Education Research Source: This project Note: Commercia services incude aboratories, veterinarians, management software, notaries, and brokers etc. Accountants have been mentioned separatey as being in some countries very infuentia on strategic decisions Innovation starts with mobiising existing knowedge. Innovation is a socia process, more bottom-up or interactive than top-down from science to impementation. Even pure technica innovations are sociay embedded in a process with cients, advisors etc. Very often partners are needed to impement an innovation. Innovation is first of a the responsibiity of businesses. But it is a government responsibiity too. Innovation has not ony benefits for those who innovate, but aso others gain: future innovators as we as the custers of business and the economy at arge with a better competitive position and in the ong run more jobs and higher incomes. These are so-caed positive externaities (spi-over effects) that an investor in innovation does not take into account and can ead to underinvestment in innovation. A second reason for governments to promote innovation is that this is one of the poicy instruments to mitigate negative externa effects such as environmenta poution in agricuture and food production (see tabe 3.1). As innovation is a risky business and benefits from the exchange of ideas, earning and innovation networks have proven to be an adequate vehice for empowering groups of farmers to investigate new options to make their business more viabe or sustainabe. It aso seems to be an efficient form for information brokers such as farm advisors. This impies poicy instruments that finance coectives in networks, incuding food chain partners, non-governmenta organisations (as advocates of sustainabiity), extension and research. It shoud be noted that innovation poicies have recourse to many more instruments than research: for instance abour market poicies, reguation (with standards or mandates) or de-reguation and access to risk bearing capita can be as important as research or coud strengthen its impact. Socia innovation refers not ony to the socia aspects of the innovation process, nor ony the objective that innovations shoud aso be sustainabe in the corporate socia responsibiity sense, but to aso the fact that socia probems need innovative approaches. These incude rura deveopment in regions with aging or decining popuations, decreasing (governmenta) service eves and (sometimes) uncompetitive agricuture. But socia innovation with urban farming and food projects can contribute to improved quaity of ife in poor neighbourhoods

12 10 E x e c u t i v e s u m m a r y of big cities with high eves of unempoyment and high rates of obesity. Socia innovation can go aong with the desire to strengthen the ink between urban ife on one hand and food and the rura area on the other hand. S.3 Background The European Union s Standing Committee on Agricutura Research (SCAR) is mandated by the Counci to pay a major roe in the coordination of agricutura research efforts across the European Research Area (currenty composed of 37 countries).this incudes questions of advisory services, education, training and innovation. The SCAR set up a Coaborative Working Group (CWG) with participants from the European Commission and the member states (both civi servants and researchers or extension workers) to refect on Agricutura Knowedge and Innovation Systems. The CWG asked experts to provide a paper on the concepts used in science (summarised in chapter 3 of this report) and a paper on socia innovation (summarised in chapter 4). The members coected and presented materia from their own countries in workshops (chapter 5) and discussed trends and future scenarios. The refection was for the participants very usefu and of direct use for current poicy deveopment. Seeing the chaenges in this area and the focus in poicy on innovation, we recommend SCAR to foow up this group up with a new group with an updated mandate to continue the work on outstanding questions and emerging issues.

13 1 INTRODUCTION Text by Krijn J. Poppe 1.1 Innovation by tradition The famiiar image of agricuture is more conservative than innovative. This is wrong. Agricuture and innovation go hand in hand. Ever since agricuture was invented some years ago, somewhere in the fertie crescent of the Midde East (and simutaneousy in some other paces in the word), farmers have innovated. In working with nature they knew that mutating weeds and pests woud win the batte when innovation fatered. Some of our food products sti resembe those of a few hundred years ago, and are not so much associated with innovation as new products in ICT are; nevertheess innovation has happened and on baance has contributed to socia wefare. In the ast century agricutura innovation has been professionaised in outsourcing these activities to universities and state activities in appied research and extension (advice) and to professiona companies (such as breeders and equipment suppiers). The socia return of these activities has been enormous, and often far above market rates for investments [Aston,2010]. As a resut our food, at east in countries such as the EU member states, has become cheap and pentifu. Notwithstanding these successes, in the recent years discussions on the effectiveness of the innovation system have taken pace. With penty of cheap food avaiabe and raising awareness of negative externaities (such as environmenta and food safety issues) the future of the food system became an issue for broad poitica debate. Read a newspaper or wak into a bookshop and the information on food issues is as pentifu as our supermarkets are. This pubic debate has its effect on agricutura poicy (in issues such as rura deveopment and cross compiance) and food egisation. Of course this aso affected the orientation and sometimes the structure of the agricutura knowedge and innovation system but aso ed to compaints that the od production oriented innovation system was not fit to deiver new farming systems [SCAR 2nd foresight Brunori et a. 2008, IAASTD, 2009]. Recent worries about scarcities and the functioning of the food system have ed to new questions on the effectiveness of the Agricutura Knowedge and Innovation systems (AKIS). Is productivity increase eveing off, have the investments been too ow and the od productivist objectives wrongy been negected, have the reorganisations that severa countries have orchestrated not yet been beneficia enough? - these are just some of the questions that pop up in discussion in severa countries [OECD, 2011 and 2012; House of Lords, 2011, Sunde et a., 2011]. This report refects on the state of the AKIS from the point of view of the research and innovation poicies in the EU and in its member states. It has been commissioned by and written to inform the EU s Standing Committee on Agricutura Research (SCAR) on the current state of the AKIS and their fitness to contribute to the EU s innovation agenda 2020 (for smart, sustainabe and incusive growth). 1.2 Introduction to the Standing Committee on Agricutura Research (SCAR) The Standing Committee on Agricutura Research (SCAR) was estabished in 1974 by a Reguation of the Counci of the EU. It is formed by representatives of member states (and presided over by

14 12 i n t r o d u c t i o n a representative of the Commission), and has a mandate to advise the European Commission and the member states on the coordination of agricutura research in Europe. The SCAR committee was given a renewed mandate in 2005 by the Counci to pay a major roe in the coordination of agricutura research efforts across the European Research Area. The new SCAR is made up of the 27 EU member states, with representatives from candidate and associated countries as observers. The SCAR members currenty represent 37 countries. On the occasion of an informa Counci of the ministers of agricuture in Krems, 28th 30 th May, 2006, under the Austrian Presidency, the Ministers recommended that, in the framework of the Lisbon Strategy, the Standing Committee on Agricutura Research (SCAR) shoud invite EU member states to incude questions of advisory services, education, training and innovation in their discussions. On 6-7 th October, 2008, the French Presidency of the EU organised for SCAR a workshop in Angers entited Strengthening the inks between knowedge and agricutura innovation in Europe. The workshop concusions pointed out that European farming and agro-industry need knowedge from many different sources to compete with quaity products in a gobaised word. Cimate change mitigation and adaptation and recent fears reated to food security are new chaenges. Compiance with standards concerning the environment, food safety, anima heath and wefare need integrated approaches for optimised farm management. Farming is much more diverse than in the past and is often combined with other activities. New knowedge is generated by farmers, researchers (basic and appied) and private companies. The od inear mode of technoogy transfer (from scientists to the users) is therefore outdated and shoud be repaced by an interactive mode of networking systems, which integrate knowedge production, adaptation, advice and education. The Angers workshop provided an opportunity to identify the key features of a European Agricutura Knowedge and Innovation System and to anayse how shared experience from important reforms in severa European countries can ead to potentia best practices. It highighted the stakes inked to the need of proper AKIS for Europe: How to maintain a sufficient technica and scientific eve among actors in order for them to respond to goba and oca changes and to enhance their entrepreneuria skis? How to orient deveopment work and to ink it to continuous education of the actors? How to conceive a new Common Agricutura Poicy (CAP) that is supported by strong innovation systems in agricuture? The conference on The Knowedge Triange: Shaping the Future of Europe, organised by the Swedish Presidency of the EU on 31 st August 2nd September, 2009 in Gothenburg dwet on the importance of a we-functioning knowedge triange (education-research-innovation) for Europe, in a situation where the EU s research and higher education system is perceived as fragmented and cas for intensified interaction between poicy areas, notaby higher education, research and innovation. A European modernisation agenda is presenty stimuating universities to deveop their diverse missions and new modes for the way they operate. Innovation and entrepreneurship must be integrated whie maintaining education and research as core activities. The need to deveop further the knowedge based European society creates a strong pressure on universities as centra actors of the knowedge triange. Probems as compex as those presenty facing agricuture need broad approaches ooking beyond the traditiona agricutura boundaries. There is a need for inter- and even trans-discipinary approaches.

15 The SCAR and Agricutura Knowedge and Innovation Systems (AKIS) In ine with the renewed and extended SCAR mandate, the 2008 Communication from the European Commission to the Counci, the European Pariament, the European Economic and Socia Committee and the Committee of the Regions entited Towards a coherent strategy for a European Agricuture Research Agenda indicates that the Commission intends to make use of SCAR to identify agricutura knowedge structures in each Member State, with a view to eventuay creating a corresponding CWG. Subsequenty, the SCAR penary meeting of December 2008 endorsed the proposa that the SCAR-Working Group wi ook into the possibiity to set up a CWG on this issue (i.e. on the inks between knowedge and agricuture innovation in Europe). The same idea was expressed during the SCAR penary meeting of June 2009, during which France and the Netherands expressed their commitment to expore a possibe foow up of the Angers workshop in the form of an ad hoc Coaborative Working Group. This new SCAR-CWG on agricuture knowedge and innovation systems in Europe intends to contribute to the fufiment of SCAR mandate as described in the precedent section. It coud provide a starting point to estabishing a European monitoring device of the AKIS structures and their evoution, a cruciay necessary too for designing and evauating AKIS poicy formation and impementation, in the perspective of the chaenges ahead: to feed the word popuation in the ong term, in a sustainabe way. Furthermore, since advisory and extension services are ikey to pay a significant roe in the deveopment of any future European agricutura knowedge and innovation system, the findings of the CWG coud be interesting to the European Commission, in particuar in view of the Farm Advisory System, a poicy instrument in the Common Agricutura Poicy and in view of proposas to reform the CAP with more emphasis on innovation and a European Innovation Partnership (EIP) on productive and sustainabe agricuture. 1.4 Background of the issue regarding AKIS One key message of the first SCAR foresight exercise, which was widey disseminated by a June 2007 Conference in Brusses indicated that the mounting chaenges facing the agri-food and rura sectors in Europe ca for a review of the inks between knowedge production and its use to foster innovation. Research coud pay a stronger roe if different actors (farmers, advisory services, consumers, private sector, civi society, poicy makers) were better integrated into actua agenda setting and became part of the research process through acting together as innovative networks. The second SCAR foresight exercise has shed a rather crude ight on the current state of Agricutura Knowedge Systems in Europe, described as currenty unabe to absorb and internaise the fundamenta structura and systemic shifts that have occurred. The remaining pubicy funded AKIS appear to be ocked into od paradigms based on inear approaches and conventiona assumptions. The report stressed the need for renewed poitica attention to the effectiveness, reevance and scae of Europe s AKIS and for a redefinition of AKIS. Athough many share this feeing, more evidence-based anaysis is needed to deveop adequate poicy actions. Since the start of the CWG in 2009, the issue has become even more reevant. The European economy has seen a changing poicy context: the financia and food crises, the EU 2020 strategy

16 14 i n t r o d u c t i o n for a smart, sustainabe and incusive growth, the European Innovation Partnership initiative and the discussions on the CAP post-2013 (incuding the roe of innovation) have infuenced the discussions in the CWG. 1.5 Working methods of the Coaborative Working Group (CWG) The Coaborative Working Group is a network of civi servants (and some counter parts from research organisations) from the member states and the European Commission. The European Commission made a sma budget avaiabe for three experts to write a methodoogica state of the art paper. A refection paper has been written on the AKIS concept [Dockès et a., 2011]. In addition a briefing paper on the significance of socia innovation in the context of agricuture and rura deveopment has been written (Bock, 2011). The CWG has made an inventory of nationa issues and structures and spent time on refection on the present situation and options for the future. More detais on the CWG, its composition and the way it carried out its work are given in Annex 1 The Making Of. 1.6 Introduction to the report This report starts from theory on (genera) innovation poicy in Chapter 2, where aso current EU initiatives on innovation are discussed. We then describe the theoretica notions and experiences with AKIS (Chapter 3) and describe the topic of socia innovation (Chapter 4). With these concepts the Coaborative Working Group has investigated and discussed experiences in the member states. As the CWG is run on a vountary basis, this is not a representative picture for the EU or European Research Area as a whoe. However we think Chapter 5 reports many important trends and gives interesting exampes. We hope it shows what monitoring, in the sense of joint earning in a transition, can contribute. Chapter 6 tries to anayse the situation the economy and agricuture is in and to see what this coud mean for the future. Chapter 7 offers our refection and makes some recommendations. This report is in Engish and the technica anguage that the CWG adopted is as much expained as we thought usefu. But we warn the reader that practices and terminoogy (e.g. on types of research) differ between anguages and countries.

17 2 INNOVATION POLICY: THEORY AND EU INITIATIVES Text by Krijn J. Poppe 2.1 Some theoretica notions on innovation poicy 1 The thinking on AKIS is based in the so caed Systems of Innovation thinking concerning innovation poicy. Smits et a. (2010) distinguish two views on innovation poicy: the systems of innovation approach versus the macro-economic approach (Tabe 2.1). Tabe 2.1 Two views on innovation poicy Main assumptions Focus Mainstream macro-economics Equiibrium Perfect information Aocation of resources for invention Individuas Institutiona and evoutionary economics: systems of innovation Dis-equiibrium Asymetric information Interaction in innovation processes Networks and frame conditions Main poicy Science / Research poicy Innovation poicy Main rationae Market faiure Systemic probems Government intervenes to Main strenghts of poicies designed under this paradigm Main weaknesses of poicies designed under this paradigm - provide pubic good - mitigate externaities - reduce barriers to entry - eiminate inefficient market structures Carity and simpicity Anaysis based on ong term trends of science-based indicators Linear mode of innovation (institutiona) framework conditions are not expicity considered - sove probems in the system - faciitate creation new systems - faciitate transition and avoid ock-in - induce changes in the supporting structure for innovation: create institutions and support networking Context specific Invovement of a poicies reated to innovation Hoistic approach to innovation Difficut to impement Lack of indicators for anaysis and evauation of poicy Source: Ruud Smits, Stefan Kuhmann and David Shapiro: The Theory and Practice of Innovation Poicy, 2010 The macro-economic view tends to see innovation as a inear process from (basic) research via R&D to a commercia appication. The main rationae is market faiure and the main poicy instrument is science or research poicy. As there is aso a risk of government faiure, the choices on the direction of innovation shoud in this view- be eft to the market as much as possibe: the market organises the aocation of resources. It eads to a fairy cear poicy that can be monitored by trends in science-based indicators. 1. This Chapter is mainy based on the recent handbook by Smits et a. 2010

18 16 I N N O V A T I O N P O L I C Y : T H E O R Y A N D E U I N I T I A T I V E S The systems of innovation view has a more compicated approach to innovation and innovation poicy. The focus is on interaction between different stakehoders in the innovation process. The main rationae is that there are systemic (network) probems in the system or the creation of new innovation systems. Therefor an innovation poicy is needed. However that innovation poicy makes choices and is much more context specific. Whie the macro-economic view is inked to the equiibrium thinking in economics, as eaborated by great economists such as Ricardo, Marsha, Waras, Coase, Hayek and Friedman (to name ony a few). Innovation however is much more about bringing the economy into disequiibrium. Severa great economists have contributed to that view: first of a Schumpeter with his thinking on the roe of the entrepreneur, creative destruction and business cyces. He buid on work by Kar Marx (on the roe of the capitaist) and Friedrich List (the infant industry argument). Other thinkers are Ken Arrow on market faiure and Oiver Wiiamson on institutiona economics. The innovation system perspective heps to understand the dynamics of innovation processes by pointing at path dependency and structura scerosis as we as the potentia for new combinations, reated chances and options, and opportunities for innovation poicy (Smits et a., p.3). 2.2 The functions of a knowedge and innovation system In the Systems of Innovation view, a we-deveoped knowedge and innovation system has seven functions (Bergek et a., 2010): 1. Knowedge deveopment and diffusion 2. Infuence on direction of search and identification of opportunities 3. Entrepreneuria experimentation and management of risk and uncertainty 4. Market formation 5. Resource mobiisation 6. Legitimation 7. Deveopment of positive externaities Innovation systems can be anaysed on these functions, and bocking mechanisms to deveop or improve these functions can be identified; this can be a basis for poicy intervention. Seen the seven functions of a we-deveoped knowedge and innovation system, it is cear that such a system is not buit overnight. Successfu innovation systems deveop their specia competitive scientific, educationa, technoogica profies and strengths rather sowy, in the course of decades, or even centuries, and change is often sow to occur. Leading innovation systems are based on weestabished exchange reationships among the institutions of science and technoogy, industry and poitica system. They make possibe the formation of a characteristic, system-specific spectrum of diverse roe definitions of the actors activey invoved, deveop their own negotiation arenas, and stabiize mutua expectations of behaviour. Finay they bear particuar intermediary fora and bodies which faciitate the transactions of the actors of innovation systems (Smits et a., p. 3). A cassic exampe has been the British and German innovation systems in the first and second industria revoution, as studied by Chris Freeman (1997). He showed the exceent

19 17 inks between the scientific. poitica, cutura and industria sub-systems in Britain in the first industria revoution. The system eroded in the second industria revoution because of a widening gap between science and the other three sub-components. In the meantime Germany improved by buiding bridges among industria research, production and the poitica and cutura sub-systems (quoted from Smits et a., 2010, p.3) Innovation is a broad concept. The OECD defines it as the impementation of a new or significanty improved product (good or service), or process, a new marketing method, or a new organisationa method in business practices, workpace organisation or externa reations. This impies that innovation activities are a scientific, technoogica, organisationa, financia and commercia steps which actuay, or are intended to, ead to the impementation of innovations. 2.3 The organisation of a knowedge and innovation system After Word War II the distinction between basic research ( science for science ) and appied research ( science for innovation ) became increasingy important 2. Basic research became cosey associated with academic research or pure research. OECD appied the dichotomy in its 1963 manua. Universities (and academic institutions ike Max Panck in Germany and CNRS in France) continued to see basic research as their main mission, with the American and-grant universities as one of the exceptions. This division of abour was aso inked with a inear mode in the chain from basic knowedge to innovation, be it science-push or (ater) demand-pu. This picture was of course an oversimpification, but supported by the socia sciences. Economists such as Neson (in 1959) and Arrow (in 1962) inked it with pubic goods and market faiure. Socioogist (Merton, 1973) inked it to the roe of norms (CUDOS) in behaviour. (cited from Martin in Smits et a., 2010, p 28/29). However, this view is now discarded. Currenty the reationship between innovation practice, innovation poicy and even innovation theory is seen as one of co-evoution or a earning perspective in a muti-stakehoder setting (Smits et a., 2010, p.7). In modern theories knowedge creation is not seen as a inear top down process, but as a compex process with many iterations. Gibbons (1994) abeed this as the change from Mode 1 to Mode 2 science. It is a Tripe Heix approach (Leydesdorff and Etskowitz, 2003) in which three independent institutiona structures (government, business and science) interact from time to time with each other, steered rather autonomousy by their own deveopment. This framework for anaysis stresses the importance of the dynamics of networks and aiances between institutions instead of the how and where of creation of knowedge (extra-mura over intra-mura). 2. There are many other terms and distinctions used, and some of them are rather country specific: Fundamenta versus Appied research; Targeted and Non-Targeted (Bue Sky) research; Frontier-research, Appied Strategic and Appied Specific research (UK); Transationa research (in French: recherche appiquée, which shoud not be transated as appied research). We wi not add to the confusion by aso using these terms in this report. Readers that are ooking for definitions are referred to the 1993 Frascati Manua pubished in 1994 (ISBN avaiabe from HMSO, UK), that offers definitions on R& D - Research and Experimenta Deveopment ( creative work undertaken on a systematic basis in order to increase the stock of knowedge of man, cuture and society and the use of this stock of knowedge to devise new appications ) and the three activities covered by R&D: basic research ( experimenta or theoretica work undertaken primariy to acquire new knowedge of the underying foundation of phenomena and observabe facts, without any particuar appication or use in view ), appied research ( origina investigation undertaken in order to acquire new knowedge. It is, however, directed primariy towards a specific practica aim or objective ) and Experimenta deveopment ( systematic work, drawing on existing knowedge gained from research and/or practica experience that is directed to producing new materias, products or devices, to instaing new processes, systems or to improving substantiay those aready produced or instaed ).

20 18 I N N O V A T I O N P O L I C Y : T H E O R Y A N D E U I N I T I A T I V E S Tabe 2.2 Mode-1 and Mode-2 Science Mode 1 Mode 2 Academic Discipine-oriented Homogeneous Linear and stabe Academic quaity contro Accountabe to peers Academic Discipine-oriented Homogeneous Source: Gibbons, 1994 Oriented towards appication Transdiscipinary Heterogeneous Non-inear and voatie Quaity management on a broader set of criteria Accountabe to society Oriented towards appication Transdiscipinary Heterogeneous In this ine of thinking, innovation has become a process op co-innovation or open innovation. And sometimes it is not even an end in itsef but a serendipity effect of coaboration: By and arge the systemic perspective on innovation as a socio-economic and technoogica process has advanced - to some degrees aso [via the innovation management iterature] in firms- that any innovation success (..) shoud rather be viewed as a by-products aong innovation journeys than as end resuts. Such journeys are characterised by numerous setbacks aong the road. Innovation management is not a contro probem, it shoud be seen as one of orchestrating a highy compex, uncertain and probabiistic process of coective action in a systemic context (Smits et a., 2010, p. 10). The Mode-2 knowedge production chaenges the traditiona distinction between basic and appied research. Basic research seeking new understanding about the word is in agricuture (unti the arriva of biotech?) anyway ess important than generating usefu knowedge that can be appied in deveoping a new technoogy or way of working. The basic research is more in (systems) bioogy, materia science and currenty ICT. Mode-2 research aso invoves more muti-, inter- and transdiscipinairy working. The processes invoved in the production of knowedge (science), the appication of knowedge (technoogy) and the successfu expoitation of knowedge (innovation) are undergoing fundamenta change (Martin in Smits et a., 2010, p 25). Monitoring and evauation toos are not very we deveoped for such a post-modern framework. From a pubic administration/pubic management perspective Termeer (2006), appying theories by Weick (2000) and a hypothesis formuated by Beer and Nohria (2000) suggests that the programs or instruments that managers appy do not matter that much, as ong as they contribute to the basic conditions of creating meaning or reevance that is essentia for earning, adapting and changing in a turbuent word. These basic conditions are: - motivate peope to keep moving and experimenting to make unknown possibiities known (vitaising); - create a genera direction to evauate experiments; - promote a process of adapting to oca situations (updates) by precise attention to deveopments, context and meaningfu detais; - faciitate open interactions in which trust, reiabiity and sef-respect can grow in such a way that peope can appraise the situation and deveopments. Some of these conditions mirror the functions of a successfu Knowedge and Innovation System, as stated in the previous paragraph.

21 19 The roe of firms The systems approach to innovation impies that the behaviour of firms cannot be understood purey in terms of independent decision-making at the eve of the firm. Rather, innovation invoves compex interactions between a firm and its environment, on two different eves: the interaction with other firms, and the broader factors shaping the behaviour of firms such as the socia and cutura context, the institutiona and organisationa framework etc. This has important consequences for innovation poicy (text taken from Smith in Smits et a., 2010, p 89). In economics, the firm is the pace where production decisions are made, initiatives taken and inventiveness turned into rea products sod for profit. Kar Marx was one of the first to point out that capitaists were a driving force behind the deveopment of the forces of production. Joseph Schumpeter s doctora dissertation (1911) in the Austrian Schoo of economics is often quoted as the first major work on innovation. In his view economics is not ony about equiibria, it is above a about entrepreneurs who make new combinations and by doing so create disequiibrium ( creative destruction). In the corporate aboratories of the 20th century this entrepreneuria activity was standardized in the routinization of innovation (Schumpeter in 1942). (Text taken from Dankbaar & Vissers in Smits et a., 2010, p ). In his work on business cyces Schumpeter aso connected break through innovations with the ong wave Kondratieff waves. With mass-production of the fourth industria wave becoming more mature and ICT as the fifth industria wave (Perez, 2002; see Chapter 6 for more detais), businesses in the 1980s started to decentraise their R&D funding. Scae effects gave way to fexibiity, which impied a shift from strategic research to consumer-oriented innovation. At the same time (as a compensation?) government funding of R&D increased. As a consequence new issues arose in the management of innovation: absorption capacity, intermediary institutions and commerciaisation of university research, e.g. via start-ups and the existence of ange and venture capita for this. Innovation management became increasingy concerned with the organisation of processes across the boundary of organisations, with networking as a buzz-word. Custers (Porter in 1990) and open innovation aso fit into this picture (cf. Dankbaar and Vissers in Smits et a., 2010, p ). Technoogica change and innovation bring new ways of organising. This is true within a firm, but aso for society as a whoe. The concept of socia innovation was coined in the 1980s to indicate that new ong wave technoogies invove major institutiona changes (Freeman in 1987). Institutiona economists and others noted that socia institution are sow in changing, aso because many different stakehoders have vested interests in fixed routines. (Dankbaar and Vissers in Smits et a., 2010, p. 69, see Chapter 5 for more detais). 2.4 Current EU innovation poicy and the ink with theory The scientific views as summarized above have found their way in to thinking on innovation poicy and are more and more used in practica innovation poicy. The OECD has been active as a think tank in this respect and became one of the promoters of these ines of thinking. The recent OECD Innovation Strategy (OECD, 2010a) highights both the economic and socia roes of innovation, stating that the objective of poicy shoud not be innovation as such, but the appication of innovation to make ife better for individuas and society at arge. Poicy coherence is often high on the agenda of the OECD s recommendations, and the systemic approach to innovation and innovation poicy is an area for poicy coherence par exceence: a

22 20 I N N O V A T I O N P O L I C Y : T H E O R Y A N D E U I N I T I A T I V E S good poicy mix can ead to important synergies or is even needed to have a system innovation adopted. For instance to introduce organic agricuture research or extension is not enough. Reguation is needed to provide a standard for what defines organic. Probaby reguation on and markets (to recognise organic sois) has to be changed and procedures to hande externa effects between conventiona and organic production have to be estabished. Payments in the Common Agricutura Poicy can be differentiated to stimuate the innovation. Innovative procurement by pubic authorities can hep. And perhaps dereguation is needed to make it possibe to se cucumbers that are safe but do not ook that nice. Consumer information can hep, etc. This exampe shows that in a society where government is 50% of the economy and institutions are essentia for the functioning of the market economy, innovation poicy has many aspects. It aso shows that managing such a poicy itsef is knowedge and abour intensive. The OECD (2005) ists 14 poicy principes for fostering innovation. These fa within five broad categories: - Empowering peope to innovate - Uneashing innovation in firms - Creating and appying knowedge - Appying innovation to address goba and socia chaenges - Improving the governance of poicies for innovation. A rather broad view on innovation is aso the basis for monitoring innovation in the European Innovation Scoreboard: it now measures seven dimensions of innovation (with severa indicators) that are grouped in three bocks: Enabers, Firm Activities and Outputs. Current poicy agenda 3 The current economic cimate has ed to new initiatives to promote innovation. As we expore in Chapter 6 of this report, these initiatives are very much needed, given the current phase of the ong term business cyce. The European Commission has come forward with the Europe 2020 strategy, which is its growth strategy for the coming decade. It wants the EU to become a smart, sustainabe and incusive economy. These three mutuay reinforcing priorities shoud hep the EU and the member states deiver high eves of empoyment, productivity and socia cohesion. Concretey, the EU has set five ambitious objectives - on empoyment, innovation, education, socia incusion and cimate/energy - to be reached by Each member state has adopted its own nationa targets in each of these areas. Concrete actions at EU and nationa eves underpin the strategy. This is roughy in ine with the ca of the OECD for a strategy to reaise green growth. The Innovation Union is one of the seven fagship initiatives of the Europe 2020 strategy for a smart, sustainabe and incusive economy. It contains over thirty actions points, with the aim to do three things: turn Europe into a word-cass science performer; remove obstaces to innovation such as expensive patenting, market fragmentation, sow standard-setting and skis shortages which currenty prevent ideas getting quicky to market; and 3. Some of the texts beow have been taken from the European Commission s websites

23 21 revoutionise the way the pubic and private sectors work together, notaby through Innovation Partnerships between the European institutions, nationa and regiona authorities and business. These points iustrates that aso in the European Commission s strategy innovation is a much broader concept than science, research & deveopment and extension. Within the Innovation Union, Horizon 2020 is the financia instrument impementing the Innovation Union. Running from 2014 to 2020 with a propsed 80 biion budget, the EU s new programme for research and innovation is part of the drive to create new growth and jobs in Europe. Innovation support wi aso be strengthened in the EU s Common Agricutura Poicy if the European Commission s proposas wi be adopted. In October 2011, the European Commission (EC) pubished its ega proposa for the Common Agricutura Poicy (CAP) after The proposa acknowedges the importance of research, knowedge transfer and innovation in addressing the chaenges faced by European farmers and it recognises the centra roe of Agricutura Knowedge and Innovation Systems (AKIS). Among the different measures, the EC proposes to reinforce the roe of the Farm Advisory Service (FAS) and to create a European Innovation Partnership (EIP) for agricutura productivity and sustainabiity. The EIP is a new instrument created to faciitate the information fow between research and practice : The EIP shoud aim to promote a faster and wider transposition of innovative soutions into practice. The EIP shoud create added vaue by enhancing the uptake and effectiveness of innovation-reated instruments and enhancing synergies between them. The EIP shoud fi gaps by better inking research and practica farming (page 22, recita 51 of the COM(2011) 627 on rura deveopment) and give the end-users as co-innovators a say in the research. The impact assessment carried out by the European Commission on its proposa refects the opinions on AKIS mentioned in Chapter 1: Currenty new approaches take too ong to reach the ground and the practica needs on the ground are not sufficienty communicated to the scientific community. This EIP wi ensure a faster exchange of knowedge from research to practica farming and provide feedback on practica needs to science via operationa groups (page 18, Annex 7 of the Impact Assessment2). The new toos proposed by the EC are aimed at overcoming the bottenecks to getting research resuts adopted on the ground: according to the EC anaysis, a major weakness is the insufficient information fow and missing inks between different actors of the AKIS (farmers, advisers, enterprises, researchers etc.). Other chaenges faced by the AKIS are reviewed in Annex 7 Research and Innovation of the European Commission Impact Assessment pubished on 12 October They are: - To support puraistic scientific approaches to meet the numerous chaenges faced by the agricutura sector (to suppy safe and affordabe food, in sufficient quantity, in the context of a growing word popuation; to provide heathy food that answers consumer demand and addresses pubic heath concerns, and to reduce its impact on the environment in a context of resource scarcity). The required innovation cannot ony be technoogica. Socia and organisationa innovations are aso needed. - To boost advisory services and other stakehoders that act as an interface between research providers and users in order to counterbaance the ow eve of attention to these actors in recent decades and the current trend for fragmentation of the organisations of extension.

24 22 I N N O V A T I O N P O L I C Y : T H E O R Y A N D E U I N I T I A T I V E S - To faciitate the incusion of sma farms in the AKIS as they are not sufficienty invoved in the current research and innovation systems. - To stimuate coaborative and earning networks that are recognised as effectivey contributing to innovation as patforms for exchanging information and for earning processes. These proposas ceary refect the systemic approach to innovation: the systems of innovation thinking in which the concept of Agricutura Knowedge and Innovation Systems is grounded. The next Chapter expores the concept of AKIS in more detai.

25 3 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Text by Anne-Charotte Dockès, Tais Tisenkopfs and Bettina B. Bock 3.1 Summary 4 The AKIS concept has been deveoped out of the od AKS (Agricutura Knowedge Systems) concept, that originated in 1960s in schoary work on agricutura advise and extension. That system was driven by an interventionist agricutura poicy that sought to coordinate knowedge and innovation transfer in order to acceerate agricutura modernization. In many countries this was refected in a strong integration of pubic research, education and extension bodies, often under the contro of the Ministry of Agricuture. In the 1970s an I was added to the AKS: agricutura knowedge and information systems (AKIS). This addition was inked to the increased attention to information, probaby aso in connection with the arge scae introduction of computers. The term AKIS popped up in poicy discourses at OECD and FAO. Later and rather sienty the I was redefined in Innovation: Agricutura Knowedge and Innovation systems. There were four drivers that contributed to the move (in thinking) from AKS to AKIS: Research, extension and education have undergone a deep restructuring, transformed by the trend towards iberaization (privatization of service deivery, the mutipication of extension organizations, farmers contributing towards the cost of these services, competitive bidding for research and extension contracts and tighter evauation procedures). Poicy agenda: increasing concern over the environmenta impact of industria agricuture, the quaity of ife of rura popuations, rura empoyment and the need to support the positive externaities inked to agricutura production. The inear mode of innovation has progressivey been repaced by a participatory or side by side network approach, in which innovation is co-produced through interactions between a stakehoders in the food chain (and especiay for 2nd order change, so caed system innovation ike the introduction of mutifunctiona agricuture or organic farming) The growing disconnection between farmers knowedge and research and extension systems. The forma definition of an AKIS is a set of agricutura organizations and/or persons, and the inks and interactions between them, engaged in the generation, transformation, transmission, storage, retrieva, integration, diffusion and utiization of knowedge and information, with the purpose of working synergisticay to support decision making, probem soving and innovation in agricuture (Röing and Enge, 1991). 4. This Chapter is a shortened version of the refection paper written by the authors for the CWG [Dockès et a., 2011]

26 24 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS An AKIS shoud be abe to propose and deveop practica ideas to support innovation, knowedge transfer and information exchange. Innovation poicy needs to refect the manner in which innovation actuay occurs today: often through diffuse networks of actors who are not necessariy focused on traditiona research and deveopment. 3.2 Definitions of AKS and AKIS Definitions of the agricutura knowedge system (AKS) have changed over time, with changing ideas about agricuture. There is a history of changing visions of, and poicies towards, AKS. Leeuwis and Van den Ban (2004) caim that the AKS concept originated in 1960s, driven by an interventionist agricutura poicy that sought to coordinate knowedge and innovation transfer in order to acceerate agricutura modernization. In many countries this concept was impemented through a strong integration, generay at nationa eve, of pubic research, education and extension bodies, in many cases under the contro of the Ministry of Agricuture. Since the 1970s, officia organizations such as the OECD and the FAO have introduced the concept of agricutura knowedge and information systems (AKIS) in poicy discourses. This acronym has since evoved to describe agricutura knowedge and innovation systems a concept that seeks to encompass and infuence the compexity of knowedge and innovation processes in the rura sphere. In this report we use AKIS as an operationa term not as a fixed and unchangeabe definition or modus operandi. The AKIS concept contains eements that are both constructivist and proactive. It is intended to hep expain how information and knowedge fow (and how innovation takes pace) and how these processes can be strengthened. AKIS has the potentia to be an important too for change management and heping agricutura systems become more compatibe with broader societa goas. We end this section with a gossary of terms that characterizes the evoution of thinking about AKS/AKIS: a process that has seen the gradua contestation of inear approaches to knowedge transfer and towards a more compex and network-ike vision of knowedge, earning and innovation. These new concepts try to address the more compex reaity of innovation, as we as the emergence of a new paradigm based on sustainabe deveopment rather than on productivism. AKS (Agricutura Knowedge System): a coection of actors, such as researchers, advisors and educators, working primariy in agricutura knowedge institutes. The emphasis is on these actors and the roe of forma knowedge production in nationa agricutura research systems (NARS). This knowedge is then transferred to the agricutura sector through agricutura extension services and education (Rudman, 2010). AKIS (Agricutura Knowedge and Information System): The origina formuation described a set of agricutura organizations and/or persons, and the inks and interactions between them, engaged in the generation, transformation, transmission, storage, retrieva, integration, diffusion and utiization of knowedge and information, with the purpose of working synergisticay to support decision making, probem soving and innovation in agricuture (Röing and Enge, 1991). This concept deveops the notion of AKS, emphasizing the process of knowedge generation and incudes actors outside the research, education and advice sectors. More recenty the AKIS concept has evoved as it has acquired a second meaning (innovation) and opening up AKIS to more pubic tasks and to the support of innovation (Kerkx and Leeuwis, 2009). Important

27 25 characteristics of an innovation system are the institutiona infrastructure, funding mechanisms, network characteristics and market structure (Kein Woothuis et a. 2005). AIS (Agricutura Innovation Systems): these are defined as a network of organizations, enterprises, and individuas focused on bringing new products, new processes, and new forms of organization into economic use, together with the institutions and poicies that affect the way different agents interact, share, access, exchange and use knowedge (Leeuwis and Ban, 2004). LINSA (Learning and Innovation Networks for Sustainabe Agricuture): this concept is inked to the network approach of AKIS. It describes thematicay-focused earning networks that are made up of different actors, within and outside the forma, institutionaized, AKS. Members can incude farmers, extension workers, researchers, government representatives and other stakehoders (Rudman, 2010). LINSAS are simiar to coaitions (Biggs and Smith, 1998)), innovation configurations (Enge, 1995) and Pubic Private Partnerships (Ha, 2006). The emphasis is on the process of generating earning and innovation through interactions between the invoved actors. The difference between AKS and LINSAs is connected to how knowedge is conceptuaized: AKS sees knowedge as a stock to be transferred, whereas LINSA emphasizes the processes needed to make knowedge usefu and appicabe to other actors. In other words LINSA are one of the ways to strengthen the I of Innovation in the AKS. The LINSA concept heps to iuminate and extend some forms of AKIS, which may be otherwise hidden or marginaized. Learning: knowedge is an interactive (socia) process that takes pace within cognitive frames (paradigms, cognitive rues and regimes) in response to probems, opportunities and chaenges. Individua and/or coective earning occurs in various ways: earning by doing, socia earning, transdiscipinary earning, transformative earning, etc. and is a necessary precondition for change. Innovation: An innovation is the impementation of a new or significanty improved product (good or service), or process, a new marketing method, or a new organisationa method in business practices, workpace organisation or externa reations. Innovation activities are a scientific, technoogica, organisationa, financia and commercia steps which actuay, or are intended to, ead to the impementation of innovations. These activities themseves need not to be nove, but are necessary for the impementation of innovations. An innovative firm (farm) is one that has impemented an innovation during the period under review. Four types of innovation are distinguished: product innovations, process innovations, marketing innovations and organisationa innovations (definition taken from the OECD/EC Oso Manua Guideines for coecting and interpreting innovation data, 3 rd ed., Paris, 2005). 3.3 AKIS as picture Rivera and Zijp (2002) have recenty sought to broaden the AKIS concept to incude rura deveopment (RD), renaming this as AKIS/RD. Their mode ooks at four main actors with an interest in agricutura/rd innovation: Research Extension services Education and training Support systems (a the organizations providing credit, inputs and producers associations, etc.).

28 26 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS In this mode the four sets of actors act upon the knowedge of farmers and rura actors and generate innovations in response to probems and opportunities, desired outcomes, system drivers and reguative poicies and institutions (Figure 3.1). However as (the eft-hand side of) Figure 3.1 shows, probems are not simpy given by the context. Rather, they are framed in different ways by specific paradigms. The same is true of materia inputs and knowedge, which are aso shaped by paradigms. Such differences are important in framing research priorities, societa choices and pubic accountabiity. Figure 3.1 A mode of an Agricutura Knowedge and Innovation System undergoing transformation Reguatory poicies and institutions: CAP, research, education, WTO, etc. Inputs (Resources, Probems, Opportunities): Soi, and resources, agricutura inputs, ecosystems, etc. Outputs (Products, Soutions): Food, resiient and sustainabe food systems, fibre, energy, biodiversity, ecosystem services, pubic goods, etc System drivers: Cimate change, food security Source: Adapted by Dockès et a. from Rivera and a The drivers for the transition from AKS to AKIS When it emerged in the 1960s, AKS was a government driven initiative to teach farmers new skis, such as how to hande tractors. The origina orientation was to diffuse knowedge to farmers and thereby unock the knowedge embedded in products (tractors, chemicas, etc.) so as to increase productivity in food sector. AKS was not intended to promote breakthrough innovations or rura deveopment. Over time some came to view AKS as too rigid or expensive. The poicy reforms of 1990s and the privatization of advisory services in many countries saw a move away from government driven AKS and towards muti-actor systems, in which private actors (such as input industries and private advising firms) came to pay a arger roe. The AKS in EU member states are now very diverse: some have mainy private systems in extension, whie others have muti-actor systems with governments or professiona organizations as the driving force. The new emphasis on AKIS is introducing technica and socia innovations into the mode and is infuenced by paradigm shifts (that parae those that are occurring in research and innovation poicies) towards network driven muti-actor innovations and even a step further towards Life Long Learning.

29 27 A number of factors have ed to the erosion of the traditiona concept of AKS that were based on a strong integration, at nationa eve, of pubic research, education and extension bodies, under the contro of the Ministry of Agricuture. They incude both theoretica and empirica factors. 1. Research, extension and education have undergone a deep restructuring. They have been radicay transformed by the trend towards iberaization, which has ed to privatization of service deivery or to pubic/private partnerships, the mutipication of extension organizations, farmers contributing towards the cost of these services, competitive bidding for research and extension contracts and tighter evauation procedures. 2. The poicy agenda has been modified by an increasing concern over the environmenta impact of industria agricuture, the quaity of ife of rura popuations, rura empoyment and the need to support the positive externaities inked to agricutura production. This has ed to new emphasis being paced on baancing and integrating agricutura poicies with rura deveopment. 3. The inear mode of innovation has progressivey been repaced by a participatory or side by side network approach, in which innovation is co-produced through interactions between firms, researchers, intermediate actors (input providers, experts, distributors, etc.) and consumers. 4. The growing disconnection between farmers knowedge and research and extension systems. 3.5 The main actors invoved In most countries, many actors are invoved in AKIS and this can ead to fragmentation and coordination issues. Yet, on the other hand it aso provides an opportunity for innovation. In the In-Sight project, actors were actors into four groups (figure 3.3), that are discussed beow. Information and knowedge system In amost a countries the information and knowedge system is composed of research, extension and educationa organizations, structured and governed by the government through a sectora agricutura poicy. In a cases the historica goa was to increase the productivity of the agricutura sector, by making farmers more professiona. The structure of this system, its organization and governance (e.g. under a pubic or private structure) differs greaty between countries, as does the eve of centraization or decentraization. Diversity can aso be found within different regions and federa states in the same country (e.g. Germany). In genera the systems are highy fragmented and subject to a dynamic process of emerging new structures and actors. For instance, for the extension to farmers severa different modes can be identified according to the eve of fragmentation and sources of funding whether centra or regiona administration or other sources and funding (Laurent et a., 2006). Mainy privatized systems (e.g. the Netherands and some states in Germany) where the funding mainy comes from direct payments from farmers and where the AKS/AKIS is managed by private bodies. (In the Netherands the extension system is privatized but research and education is not. A knowedge voucher system has been introduced for farmers and SMEs which provides a subsidy to buy knowedge).

30 28 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Co-management between farmer organizations and the state (e.g. France, Finand and some states in Germany), with pubic funding, partia payments by farmers and farmer organizations. Semi-state management (e.g. Teagasc in Ireand which has a board with representatives from the state, industry and farmer organizations); Management by the state through regiona organizations (e.g. Switzerand, Itay and Finand). Uncoordinated individua innovation nuceuses. Figure 3.3 The main categories of actors within AKIS Socio-economic system Farmers, processors Networks of SMEs Pubic decisionmaking system Diverse pubic administrations at regiona and oca eve Information and knowedge system Research institutions, extension services, schoos, farmer unions End users Consumers, NGOs Source: Refection Paper (Dockès et a., 2010) The educationa system often has strong inks with the agricutura information system. Openness to innovation within the educationa system is therefore a key factor in enabing actors to understand and transform knowedge and thereby to buid projects. Generay, the pubic systems face simiar probems, incuding a ack of capacity, a confict between the various roes (e.g. the same organization acting as an inspector and as an advisor), management and motivation issues, methods and staff quaifications. The private systems face a different set of probems, incuding unstabe empoyment opportunities for advisers and peope having unequa financia means to take advantage of extension services, which generay favours arge hodings or more profitabe farms. Private extension systems and training courses rarey focus on pubic goods, but are more focused on reaizing the private objectives of companies. For exampe, in Ireand extension, research and education services are provided by the semi-state organization Teagasc, and inspections are conducted by a separate state department. The OECD Innovation Strategy (OECD, 2010a) emphasizes that science continues to be an essentia ingredient of innovation, even though innovation now encompasses much more than R&D. The SCAR workshop in Angers (SCAR, 2008) identified severa negative aspects in the way that science infuences AKIS. For exampe research agendas, priorities and evauation criteria are set within the academic domain, which paces great emphasis on peer reviewed pubications. But the (diverse) users of knowedge and innovators need more adapted knowedge that is better transated to their understanding and needs. Therefore the concept of a broadened

31 29 AKIS requires various forms of knowedge brokerage (e.g. the dissemination of appied research resuts in grey iterature, farmers magazines, speciaized websites, posters, seminars etc.). One way in which this can be achieved is to put more emphasis on networking, transdiscipinary research and cooperation between the words of academia (universities and research institutes) and practice (farmers, fied extensionists, knowedge brokers etc.). Innovation rarey occurs in a vacuum; it is generay a highy interactive and mutidiscipinary process and this impies the need for researchers to coaborate much more cosey with farmers and end users. In severa countries there are chaenges in transferring resuts from research into practice - and vice versa channeing practitioners demand for knowedge into research and advisory agendas. Different approaches are used to try to ensure coordination within the system, as shown in the exampes beow: In France, funding is given for specia projects invoving consortia of research, extension and education organizations. These projects foster exchange between the different organizations and can increase responsiveness and communication, but they are aso more time consuming and costy because of the higher transaction costs. Pôes de compétitivité are being buit at oca eve, with the idea of creating networks between firms, research centres and universities, around identified innovative projects. In Switzerand, patforms are in pace invoving actors from research, extension and education as we as committees of different farming and other organizations. This strengthens interactions between different stakehoders. In Baden-Württemberg (Germany), agricutura universities cooperate with governmenta research units and extension services and farmers associations. Education and extension services are supported by modern techniques and methods of knowedge sharing and by exchange patforms. Cooperation in research and innovation is adjusted to the decentraized infrastructure and increasingy done in cooperation with internationa partners. There is a recognition that institutiona research priorities (at the European, nationa and the federa-state eve) are not giving enough support to ess forma knowedge generation and that they need to be fine-tuned to foster knowedge transfer and extension. In the Netherands, the privatization of extension service has created competition. As extension organizations are competitors they are sometimes reuctant to share their knowedge. To bridge this gap and the gap between the demand and suppy sides of the knowedge market, there are intermediary brokerage structures, often pubicy funded. Extra incentives (funds) are needed to promote interactions between different AKIS actors (invoved in education and research, extension and practitioners) to stimuate the innovation chain in different directions (not ony research-driven innovation but aso innovation-driven research, integrating innovations into production and the use of knowedge). In Latvia, the AKS/AKIS is fragmented with many actors (pubic-private, oca-nationa, agricutura-rura, research-extension) invoved. Recenty the Latvian Rura Advisory and Training Centre and Latvia s University of Agricuture, two of the centra actors, have been seeking coser cooperation and farmers organizations, cooperatives, professiona associations and commercias becoming increasingy invoved in knowedge exchange, training and advice. New modes of cooperation are emerging to bridge the gap between the demand for and the suppy of knowedge. In Ireand, Teagasc, the government funded organization, provides an integrated research, advisory and extension service for farmers and stakehoders in the agri-food

32 30 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS and rura deveopment sectors. Agricutura extension (and education) services are jointy financed by farmers and state subsidies, whie research activities are funded by the state and funds won from competitive externa research funding schemes. Interactions with stakehoders are organized through forma groups of commodity stakehoders (e.g. dairy, beef, sheep, crops, environment, rura economy and deveopment etc.). Strategic partnerships for innovative extension activities between farmers, the private sector, and the media are fostered by targeted programs such as the BETTER (Business, Environment, Technoogy, Training, Extension and Research) farm programme. There is aso informa contact between Teagasc staff and stakehoders, which is made possibe by the reativey sma size of the country and Teagasc s network of appied research centres, advisory offices and agricutura coeges. Knowedge management services are aso provided by consutants operating in the private sector. Tertiary eve education and research is aso conducted by University Coege Research partnerships with Irish and European universities and fostered by a post-graduate funding scheme designed and administered by Teagasc (e.g. Teagasc s Wash Feowship Scheme). However, the inks and coordination between the main payers of the system are not aways transparent. Socio-economic actors Farmers can be categorized and differentiated according to severa criteria: professiona/parttime, od/young, men/women, conventiona/organic, speciaized/diversified as we as according to their main motivations (entrepreneurship, ethics, innovation etc.). Farmers in these different categories have different attitudes towards innovation. In genera, there is a bias among extension services towards professiona, speciaized, conventiona and mae farmers. As a resut, not a farmers have equa access to support services from AKS/AKIS. Generay, smaer farms, those engaged in extensive farming and those beow certain output threshods find it difficut to quaify for government support and extension programmes, which are argey designed for more intensive modes of production. These groups of farmers aso find it too expensive to use the services of private extension providers, so they are effectivey excuded from every kind of extension service. In the same way, in some countries (e.g. Germany) areas with more margina production conditions, mutifunctiona farms and farm househods engaged in farm-based processing and direct marketing or with non-farm sources of income can find themseves outside the officia extension system because they are engaged in innovative activities in areas that do not enjoy sufficient interest and support from the state. Farmers innovations are often ignored by the genera systems, on the grounds that they are merey incrementa, non-technoogica or not appropriate for the advisory system (Van der Poeg, 2008). Thus there is a rea chaenge to deveop taiored advice products that are appropriate for the needs of different types of farmers. Rura entrepreneurs and SMEs are invoved mainy in rura tourism, resource based activities (wood, water, etc.), food processing and socia services. In most cases they have few inks with the officia AKIS, even though socia services and care agricuture are growing in importance (Di Iacovo and O Connor, 2009). Reationships between producers, processors and retaiers are increasingy being formaized into codes of practice that are inked to quaity schemes. Actors in this group are among the major drivers of innovation, because they have to adapt their interna organization and technoogies to compy with rues and standards. Input providers (usuay manufacturing enterprises in

33 31 feed, fertiizers and machinery) are increasingy turning their commercia networks into knowedge systems. There is a strong tendency to strengthen customers oyaty by giving advice to farmers. This is particuary reevant in countries where extension services and cooperation are reativey weak, such as Itay and Latvia, and in anima production and agro-food processing, or where governments see no roe to correct this market process (e.g. the Netherands). Cooperatives and producers organizations are often a major conduit for the fow of knowedge and information. Producers associations and cooperatives often provide inputs as we as input-reated technica advice. To this end they carry out product reated research and training and provide advice reated to products. For the arger cooperatives, which tend to concentrate on, and compete in, goba markets, innovation is increasingy promoted through top-down approaches. In France and Switzerand inter-professiona bodies pay an important roe. These consist of producers, processors, other professionas and consumer representatives working together. In Ireand, institutiona innovations such as farm partnerships, share farming, and federated cooperatives have been deveoped through cross-sectora pubic/private partnerships. These cooperative institutions aim to faciitate coaboration between private farmers/producer groups and industry partners through pooing knowedge, resources and innovative capacity. In the same way processing and retaiing companies are among the most important drivers for innovation. In particuar, retaiers tend to contro producers through abeing schemes. Retaiers see themseves as the interpreters of consumers needs and motivations. They pursue a top-down approach to innovation, reducing the possibiities for farmers to foow independent innovation paths. The media and journaists (professiona journas and, increasingy, web-sites) are important fora for the exchange of information and ideas in the farming community. The mass media shapes food discourses in society at arge and mobiizes consumers attitudes in terms of food safety, vaues, aternative food networks and new production and consumption patterns. The media is aso a potentiay effective too for disseminating information on non-proprietary innovations for the agri-food sector deveoped by R&D activities. In Ireand, Teagasc coaborates with the media to track and profie case-studies of on-farm technoogy adoption (through the BETTER Farm Programme). Aso commercia service providers (veterinarians, pant and soi aboratories, brokers in the and market, providers of farm management software) and especiay (fisca) accountants and banks can be important sources for know-how on certain aspects of the farm business and reated innovation. End users Consumers are increasingy recognized as active payers in innovation, especiay with regard to green technoogies and sustainabe ifestyes. NGOs aso pay a growing roe in innovation. They often provide ideas, motivation and hep deveop the capacity to innovate. They are particuary we suited to acting as knowedge brokers, as is happening in Latvia (in the organic and in the rura tourism sectors) and in Itay (mainy in the oca food sector, but recenty aso in the energy sector). They can aso hep to deveop the market. Besides a these types of actors it is worth stressing that, at the micro-eve of innovation, eading personaities, with very specific knowedge skis and networks that can support or champion an idea or a project, pay a crucia roe in the success of projects, especiay in the emergence stage. Their persona skis and networks and their capacity to unite and motivate other

34 32 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS actors is often essentia in getting the ba roing. Whie their roe can diminish over time, when other skis and knowedge may be needed to further deveop an initiative, these individuas often continue to pay an important roe in the group process. These eading personaities are often socio-economic actors (farmers) or consumers (possiby invoved in NGOs). Leading personaities, vibrant networks and nove project groups often stimuate innovation focused research. At the meso-eve municipaities, cities and regions are becoming increasingy important payers on food scene and in stimuating innovation. In the ast decade aternative food networks have steadiy gained ground, often with support from pubic authorities (Watts et a., 2005). Quaity food production systems are being re-embedded in oca ecoogies (Murdoch et a., 2000) and many municipaities are orientating the pubic procurement of food for schoos and hospitas towards organic and regiona produce and using their purchasing power to support urban gardening and community supported agricuture (Morgan and Sonnino, 2008). Thus municipaities food strategies and endeavours to promote sustainabe production and consumption patterns can create positive connections between food, heath, the economy, the environment and cuture and become important drivers for innovation. 3.6 The main critics on the sub-systems AKIS must now reate to a broader word than just agricuture, as it has been narrowy conceptuaized in the past. New actors are entering the AKIS domain with new interests, new vaues and new expectations. As such AKIS has to transcend the traditiona borders that have defined AKS. In an idea word AKIS woud function as interconnected system or network. However, in reaity, existing AKIS is often fragmented. This section expores some of the causes and consequences of this fragmentation. Research is often not sufficienty reated to farm praxis. This is party reated to the ack of connection between the different discipines in agricutura research. Transationa research, vaorisation of research resuts, the responsiveness of research to its own content and access to resuts are a issues that need to be addressed to improve the functioning of the research subsystem. But there are positive exampes of these probems being overcome. The Dutch Dairy Academy, in which farmers and researchers coaborate as a network and jointy deveop new research and new knowedge, is one notabe exampe. Simiary, in Ireand Participatory Action Research (PAR) invoves inputs from socia scientists, extensionists and farmers to jointy devise effective knowedge transfer processes that are accessibe and acceptabe to farmers. PAR has aso ed to the adjustment of existing technoogies, so as to enhance their usefuness and acceptabiity to farmers, and to the deveopment (co-creation) of new technoogies. It is important to verify the extent to which research and innovation resut in actua change and what happens to the knowedge produced. One important indicator of AKS/AKIS is the societa benefit of the knowedge that it generates. Education and Learning in an AKIS (and especiay the research and education sub-systems) shoud be effective, rapidy and responsivey taking up new issues and ideas and integrating them in education pans, course outines and research projects. Coaborative socia earning is an important aspect of this but is currenty not we embedded in the institutiona settings of AKIS. Farmers and other vocationa actors are important drivers of innovation. Farmers have aways been inventors, but they are not keen on others earning money from their inventions. Rura women are often mentioned as drivers of innovation, because they are often outward ooking and stabiize the farm by generating diversified sources of income. Food is a unifying concept for

35 33 society and for AKIS and a new set of concerns, beyond traditiona agricutura discourses, is entering the arena. These incude: food security, pubic heath, new/aternative suppy chains, the vunerabiity of gobaized markets and the search for territoria food resiience. Socia connectors such as teachers, consutants, innovation brokers, organizers etc. are important in transferring new knowedge and heping to generate induced / embedded innovations. Transfer of knowedge in AKIS has to overcome the gap between research and praxis, but often there is no sufficient funding avaiabe for the transfer of knowedge. Research generay ends with the pubication of resuts with itte further invovement of stakehoders or target groups. There is a need for more and stronger face-to-face contacts between researchers and farmers. Extension is important in reating new knowedge to praxis (and vice versa) and there is a need for both private and pubic interests to be invoved in extension work. When it comes to innovation, the institutiona eements of AKIS need to be drivers for innovation. But this does not aways occur and we need to ask how this can be achieved in practice. Innovation is by definition risky, deveoping and appying new knowedge aways impies risk and risk avoidance can be a barrier for innovation. A propery functioning AKIS can hep to reduce risk. Overa As shown in the previous paragraphs, there are many disconnections between the various sub systems within AKIS. Actors in the subsystems are driven by different incentives and there are often no, or insufficient, incentives for them to connect with each other. To overcome this it is important to conceptuaize AKIS as a network with non-hierarchica nodes; much thinking about AKIS and innovation is sti inear or at best, circuar/cycic. At present there are major barriers between different parts of the system/network and hesitance and resistance among different actors to share their knowedge. These disconnections impede earning and hamper effective research and innovation. AKS and aso AKIS are often perceived as being unresponsive and overreguated. Competition between the AKIS actors (researchers and institutes) for funding impedes coaboration between researchers and innovators. AKIS is part of (and party driven by) the wider system of education, science, research and innovation, which are driven by incentives that are not directy reated to innovation outcomes. These incude funding that is based on student numbers, academic exceence and pubication in peer reviewed journas. These factors act a disincentive for undertaking appied research and interacting with other systems. The existing incentive structure makes it difficut to ink research with praxis. These shortcomings AKIS are aso party a resut of societa transformation and new societa concerns and demands. New actors have entered the agricutura domain, importing new vaues, new approaches and opportunities. So far the AKIS system has not responded adequatey to these changes and has been sow to take up new opportunities and adopt new ways of thinking. There are aso probems with funding for innovation. Unti recenty LEADER was a usefu source of funding for innovation, but its recent mainstreaming has reduced its previousy important roe in stimuating innovation. LEADER is now over-reguated and it is very compicated to get projects approved. The reorganization or up-dating of AKIS requires governments to adopt a new roe and make changes to the current governance and reguatory conditions surrounding AKIS. In so doing it is important to baance reguation with governance, be wary of the danger of over-reguating and of the importance of eaving enough space for innovation to happen.

36 34 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS 3.7 AKIS as a system, network or hybrid? In discussing contemporary AKIS as done above- there is a risk of presenting the AKS and AKIS too much as poarized opposites. A systems have a certain extent of fragmentation. This is a refection of societa conditions, incuding the state of the economy, the size (and homogeneity) of the territory, popuation density and education eve, the size and embeddedness of the AKS/ AKIS, cutura attitudes towards knowedge sharing and innovation and poitica and governmenta infuences on peopes behaviour and attitudes. A knowedge system is an open construction. Each fied of activity can be seen as a subsystem with its own identity, rues, actors, behaviour, institutiona infrastructure, type of reationships etc. At the same time a knowedge system is rooted within a broader system that incudes human reationships, conventions, communication infrastructure, rues, pubic concerns, etc. Both system and network approaches can be usefu in understanding and describing AKIS. System approaches focus more on institutiona aspects and network ones ook at the reationships between individua actors. Whie knowedge systems are institutionay embedded they are not static. The most important aspects of knowedge systems and of actors behaviour within them are connectivity, heterogeneity and puraity. The transformation of AKS into AKIS shoud not negect parts of the od AKS system (research, extension etc.), but encourage them to interact and be more open. The shift towards AKIS aso impies a change from attempting to transmit a singe message to farmers (e.g. improve efficiency ) towards mutipe tasks and compex innovations. Methods such as Participatory Action Research aow and encourage such mutipicities and compexities in the innovation process. Learning and interaction between actors with knowedge comes to the fore in this shift from more system-centred towards more network oriented and hybrid knowedge systems. These networks are needed but they are not going to spontaneousy appear. They need to be stimuated and faciitated whie aso nurturing and transforming the merits and capacity of the od AKS so that the different parts of system are better abe to coaborate. Leeuwis (2004) stresses the importance of repacing the concept/term of system by that of networks since the (first) term does not have in-buit connotations of a common purpose and cear boundaries, and hence serves better to describe what happens in most situations. 3.8 AKIS, innovation and transition An innovation is the impementation of a new or significanty improved product (good or service), or process, a new marketing method, or a new organisationa method. The impementation of innovations at the farm is most easiest done by buying new, innovative farm inputs. At east in the od AKS many innovations were embedded in products: by buying a tractor and seing the draught horses, or by buying new types of pesticides, farmers innovated their business. One of the roes of the extension service was to hep farmers to unock the benefits of such new technoogies on the farm. Such embedded innovation is sti occurring today. Tractors (now with precision farming technoogy), seeds, semen, chemicas, buidings and gasshouse a have innovations buid in them. Especiay farmers who have an operationa exceence strategy (focussed on efficiency of scae) benefit from such a knowedge and innovation system, that has some inear characteristics with universities and mutinationas deveoping new technoogies. But in addition there are new agricutura systems deveoped, especiay with and by farmers who have a product-eadership strategy (focussed on market-driven product innovations) or a

37 35 customer intimacy strategy (focussed on customized soutions for specific cients). In such cases AKS has certainy giving way to AKIS. The roe of science is sometimes more to understand what works and to make it more generic, or to sove bottenecks. Innovation starts with mobiising existing knowedge and then coud ead to innovation driven research. Based on a botteneck or an idea new knowedge is deveoped and appied. Innovation not ony invoves a technica or technoogica dimension. It aso, and increasingy, invoves strategy, marketing, organization, management and design. Farmers do not necessariy appy or deveop new technoogies: their noveties emerge as the outcome of different ways of thinking and different ways of doing things and in recombining different pieces of knowedge in an innovative way. Innovation is both probem soving and opportunity taking as a response to interna and externa drivers. Each innovation is characterized by a combination of technica, economic, organizationa and socia components. The deveopment and appication of technoogica or economic innovations often invoves organizationa innovations, breaking barriers, bringing actors and competences together and sociay redefining the identities and roes of actors. Approaches based on socio-technica networks enabe a better understanding of innovation processes. Innovation occurs when the network of production changes its way of doing things. This impies that innovation is mainy reated to the patterns of interactions between peope, toos and natura resources. This, in turn, impies that earning is at the core of innovation processes, as any change that brings about improvements in socia or economic organization aso increases the avaiabe knowedge. The dynamics of innovation Figure 3.4 iustrates a cycica earning process in which the subject perceives the context through the avaiabe information. Evauation of this information eads to an assessment of a given situation. If the context is seen as the source of a probem or an opportunity, the subject may start a search process, which may eventuay generate a novety. This production of this novety may have an impact both on the context and on the cognitive frameworks used by the subject to evauate the context. This paves the way for a new cyce. Figure 3.4 Innovation as a earning process Context Novety Evauation Search Source: Dockès et a. (2010), based on Insight project

38 36 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Gees and Schot (2007) eaborate the muti-eve perspective, emphasizing the importance of societa strugges in infuencing innovation choices. When new technoogies emerge, socia groups have different probem definitions and interpretations, eading them to expore different soutions. This variety of meanings is eventuay reduced through cosure, an inter-group process of negotiations and coaition buiding. In this socio-cognitive institutionaization process actors directy negotiate about rues (beief systems, interpretations, guiding principes, reguations, and roes). This dynamic is payed out at conferences, in journas, at workshops, strugges for research grants, etc. (p.405). This impies the need to better understand socia-institutiona dynamics, through which actors try to make sense, change perceptions as they go aong, engage in power strugges, obby for favourabe reguations, and compete in markets (ibid.). Transitions As innovation cyces are repeated, interactions between peope, toos and natura resources become more and more structured. Four eves of structuration of the socio-technica network can be identified (Gees, 2004; see figure 3.5). Noveties are ocaized breaks with routines. They are imited by externa constraints, such as aws, actors and norms. Niches are the resut of an aggregation of different smaer systems. They are the paces where new paradigms emerge as a resut of earning processes. They are governed by paradigms that differ from those of the dominant socio-technica systems. The norms, rues, routines of production, distribution and consumption are ooser and subject to rapid evoution. Niches activate earning and societa embedding processes. Regimes represent the stage when paradigms are turned into practices and are incorporated into concrete socio-technica systems. Networks are structured and coordinated by rues. In the period of transition period eading towards a regime change, many contradictions can emerge, as we as strong resistance to the innovation. Landscapes can be changed as an effect of supranationa poicies or the scaing up of radica changes, but more often changes in socio-technica andscapes are important drivers for radica innovation. We may incude into this category situations and events beyond the reach of nationa poicies: goba cimate change, north-south divides, internationa trade or banking reguations, etc. Figure 3.5 The dynamics of second order innovation or transition Regimes Landscapes Niches Noveties Source: Dockès et a., based on Gees, 2004; see aso Poppe et a., 2009

39 37 Transitions are defined as as a gradua process of change which transforms the structura character of a societa domain (Rotmans et a., 2001). The ine in the figure suggests a ogica and inevitabe transition from one stage to the next. However, not a noveties deveop into niches; nor is every regime supportive to noveties or new niches. Transitions are difficut to manage and may require brokers and poicy support. Whie regime shifts can be expained after the event they are very difficut to pan in advance. A change in andscape may faciitate a regime change. Socio-technica andscapes do not determine outcomes, but they do provide deep structura fieds of force that make some actions easier than others. Landscape changes ony exert pressure if they are picked up and acted upon by regime actors. Socia movements may voice protest and demand soutions. They can mobiize pubic opinion and obby for tougher reguations. Outside professiona scientists or engineers may have speciaist knowedge that aows them to criticise technica detais of regimes and propose aternative courses of action. Outsider firms, entrepreneurs or activists may deveop aternative practices or technoogies (Gees and Schot, 2007: 403, 406). Efforts to change the andscape and to deveop regimes correspond to specific paradigms. Different Rura Deveopment paradigms infuence different approaches to innovation. In recent decades there has been a partia shift from the modernization paradigm towards one that promotes integrated, sustainabe and mutifunctiona deveopment (see Figure 3.6). This new rura paradigm promotes optima and baanced use of oca resources and community engagement in deveopment projects. This impies a broadening of the concept of innovation from something that is primariy economic and technoogica to incude socia innovation. It extends the scope of innovation to incude new fieds (the organization of food chains, environmenta management, services etc.). The shift towards the new rura paradigm aso impies a shift in emphasis away from the adoption of non-proprietary innovations originating from state and private sponsored R&D activities and towards proprietary innovations, which depend on individuas own creativity. This endogenous approach, requires faciitation, capacity-buiding and the mobiization of oca resources (Sumane, 2010). Figure 3.6 Shifting rura deveopment paradigms Rura deveopment and innovation Gobaization Integrated deveopment Productivist-modernist Locaization Mutifunctionaity Sustainabe deveopment Source: Dockès et a., copying from Sumane, 2010 This second order transition impies the need for a radica shift in poicies for innovation. They need to move beyond a framework dominated by the conventiona paradigms of economies of scae, speciaization and concentration. The new modes impy focusing on agro-ecoogy and

40 38 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS muti-functionaity (as opposed to productivism and green revoution approaches); compex socia, organizationa, institutiona and technica innovation (as opposed to technoogy transfer); achieving a baance between pubic and private goods (as opposed to an orientation towards private economic goas). A these changes wi stimuate a new mode of endogenous deveopment. 3.9 AKIS and innovation poicy Innovation systems and innovation poicies are compex. Support for innovation may be the responsibiity of severa different ministries and there may be severa (overapping or contradictory) poicies to foster innovation (e,g. in the domains of research, technoogy and education). More recenty (since the 1990s) innovation aso became an objective of regiona deveopment poicy, particuary in rura areas, through the LEADER programmes as we as in nationa poicies. Innovation poicies are impemented at severa decision making eves: European, nationa, regiona and oca. Many actors are invoved and their number is increasing as interest in innovation diffuses into other poicy arenas. This high eve of fragmentation within the system, as we as the fragmentation of incentives in different parts of the system, means it is often a chaenge to achieve vertica and horizonta coordination. Actors in innovation systems are very diverse: poicy makers and administrative bodies (who are sometimes perceived as externa, out of the system, actors by other participants), universities and research institutes, innovation agencies, private firms with their own R&D arms, industria research centres etc. Some are private or pubic and some mobiize both pubic and private money. The governance of innovation systems is changing as a resut of a the increasing move towards pubic-private partnerships and the tendency for research or innovation agendas to not ony be defined by the government and universities but increasingy aso by private and pubic stakehoders. At the same time, government, universities and research institutes maintain a strong infuence over AKIS, incuding its innovation systems, athough the degree to which they do so differs between countries. Government bodies mobiize different financia instruments and create the right conditions, to support innovation through: Funding pubic or private organizations and institutions Funding projects, for exampe through the LEADER programmes Funding networks (or patforms in some countries) Distributing vouchers to private firms that they can use to buy knowedge from pubic knowedge institutes or arge companies with an R&D department (e.g. the Netherands and Ireand) A genera trend can be observed in most countries towards the creation of innovation agencies at the regiona eve that aim to support and further deveop innovation. These may be incubators, faciitating the deveopment of innovative enterprises with infrastructures, business support, R&D. They may aso take the form of technoogy transfer and contact points faciitating coordination and cooperation between enterprises and R&D providers and peer-to-peer exchange. These organizations usuay work as intermediaries, brokers and faciitators. However their main focus is not on farmers and agricuture, but on technoogica innovations and SMEs. As such these organizations have imited infuence on agricutura and rura innovation. They aso tend to operate under the inear paradigm and it can be a chaenge for them to adopt

41 39 a wider vision and estabish inks with AKIS. These genera innovation systems are aso often urban centred. Agricutura or rura innovation systems often operate quite autonomousy from genera innovation systems, except through specific mechanisms, such as LEADER projects. Enterprises in rura areas are often sma and physicay distant from knowedge organizations (universities, research institutes). This often means that they have ess access to the innovation system than enterprises ocated in urban areas. At the same time, nationa innovation poicies tend to focus their support at arger and more commercia enterprises. Enterprises in rura areas may be invoved in different activities at the same time, because of risk-spreading or seasona infuences. They are often mutifunctiona, producing a combination of commodities and noncommodity outputs, such as environmenta services, andscape amenities, socia care, eisure and cutura heritage. These atter outputs are often pubic goods, and the markets for these goods may function poory or be non-existent (IAASTD, 2008). In recent years agricutura and rura innovations have increasingy been driven by muti actor networks, which consist of combinations of stakehoders (knowedge actors, socio-economic actors, end-users, poicy actors). There are various forms of muti actor networks: earning groups, marketing networks, producer-consumer associations, communities of practice, partnerships etc. These networks are often formed outside the reams of the officia AKIS, especiay in new areas of agricutura and rura activity, such as mutifunctiona farming, environmenta technoogies, rura services, etc. As shown by the IN-SIGHT study, AKIS institutions, research and educationa institutions, regiona and oca governments and deveopment agencies often get invoved in these hybrid networks once they have deveoped to a certain point, become estabished and offer the potentia for deveoping innovations. It shoud be noted that in compex innovation networks and knowedge chains the Internet and new communication technoogies are important toos for the exchange of information, training, providing onine education, organizing networks and communicating with consumers Recent deveopments Rura deveopment and muti-sector aspects The reorientation of the CAP and the increasing importance of a wider rura poicy agenda have significanty atered the overa context in which agricuture is practised. The diversification of agricutura and rura activities has become a more important goa, which is embodied in the notion of the European Mode of Agricuture and expicity supported by recent and anticipated CAP reforms. The Rura Deveopment Reguation for the period , adopted by the Counci of Ministers in September 2005, sets out three ceary defined economic, environmenta and territoria objectives of the CAP: agricutura restructuring, environmenta concerns and the wider needs of rura areas. In other words, the main rationae of CAP is steadiy shifting away from directy supporting farmers for producing and towards supporting pubic goods, often provided by farmers. Cross compiance inks the provision of CAP subsidies to compiance with severa reguations about the environment, anima heath and wefare and good agricutura practices. To hep farmers to meet these conditions of cross-compiance, the 2003 CAP reform introduced the obigation for member states to estabish, by 1 January 2007, a Farm Advisory System (FAS). This is intended to provide targeted support to ensure the impementation of cross-compiance standards. Support for rura deveopment activities can be provided to hep farmers to meet

42 40 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS the costs of getting advice on improving the overa performance of their hoding, so ong as farmers satisfy cross-compiance and occupationa safety standards. This support can amount to up to 80% of the cost of the advisory service, up to a ceiing of A the EU states have impemented this system, mosty based on their existing advisory system. A few countries have chosen to use the rura deveopment fund for this purpose. This reorientation refects the concusions of the Sazburg Conference on Rura Deveopment (November 2003) and the strategic orientations of the Lisbon and Gothenburg European Councis, which emphasized the economic, environmenta, and socia dimensions of sustainabiity. As eary as 2001 the Gothenburg European Counci ceary stated: During recent years, European agricutura poicy has given ess emphasis to market mechanisms and through targeted support measures become more oriented towards satisfying the genera pubic s growing demands regarding food safety, food quaity, product differentiation, anima wefare, environmenta quaity and the conservation of nature and the countryside. This reorientation corresponds with the prevaiing situation and trends in rura areas. Over haf of the popuation of the EU-25 (excuding Bugaria and Romania) ives in rura areas, which cover 90 % of the territory. Rura deveopment has become a vitay important poicy area, whie farming and forestry remain crucia for and use and the management of natura resources. Rura areas and rura communities are increasingy seen as a patform and starting point for economic diversification and sustainabe deveopment. Whie farmers sti are important socia, cutura and economic actors in rura areas, the non-agricutura popuation generay represents the majority of inhabitants, especiay in areas that are within commutabe distance from periurban and urban centres. In such areas the rura economy is mainy based on activities other than farming. This broader integrated and muti-sectora praxis is embodied in the concept of the iving countryside (Wison and Rigg, 2003; Knicke et a., 2004). An important facet of this deveopment is the emerging turn to quaity in the agro-food system and the new aternative agro-food networks that are inked with it. Brunori, Rossi and Guidi (2010) argue that the pace and intensity of changes in agricuture and rura areas signa a second-order change which is chaenging widey shared assumptions and reframing agricutura and rura reations. The current transformation of European agricuture and the farming sector towards mutifunctionaity, the growing importance of sustainabe technoogies that rey on more efficient use of natura resources and the reorientation of agricutura production towards non-food markets (such as energy crops) and service provision, invove vision creation. This invoves farmers and rura actors at arge making strategic choices that take into account the societa transformations that are restructuring rura areas. Whie it is growing, this type of production currenty represents a reativey sma proportion of the vaue of agricutura output. The government has a specia roe to pay in supporting these types of production, as they create and protect more pubic goods and hep farmers who are stepping off the treadmi of the productivist food chain. However this shoud not bind us to innovations that come from retaiers and the food business, especiay things such as contract farming, biotechnoogy and biofues, etc. The transformation of Europe s rura regions is aso driven by a number of exogenous factors (Knicke et a., 2008). Within Europe these incude socio-demographic changes, counter-urbanization, the fow of some knowedge-based industries from cities to rura areas (for exampe, the increasing tendency of creative industries and new technoogy companies to ocate in rura areas), the construction of new spaces between towns and country (e.g. city regions and

43 41 metropoitan country sides) and the increased demand for quaity of ife based on rura amenities. At the same time there are aso goba trends at pay that are affecting European farmers and rura communities at both the micro and meso eve. Exampes incude cimate change, the increasing scarcity of fossi fues, the instabiity of financia markets and the infuence of distant regiona conficts. The compexity of a these forces invoves making informed and strategic choices to move towards economic and socia sustainabiity. Vaue creation is an approach to agricutura business that has argey been deveoped and consoidated outside the conventiona knowedge systems. It is an approach that has been adopted by an increasing number of farmers in recent years. The revised CAP opens up new spaces for strategies reated to vaue creation. It recognizes that European agricuture can ony compete on goba commodity markets to a certain extent. More importanty, it acknowedges that endogenous resources human, natura and socia capita are centra to increased competitiveness at a time when markets are far ess protected and eves of subsidies much ower. Furthermore, it opens the way to a broader and more integrated approach to farming, understanding it as one among a number of activities empoyed by rura actors in their pursuit of sustainabe iveihoods. These reorientations have impications for the kinds of innovation required as we as for entire innovation systems and processes. They impy a significant transformation of agricuture and the rura sphere. Farmers and rura actors have aways been part of a continuous process of restructuring. More recenty this has invoved fundamenta changes in their roes in rura areas, which are inked with changes in urban-rura reationships. These changes are redefining the job of farmers and other rura entrepreneurs. In many regions farmers are beginning to diversify their income stream by acting more as rura entrepreneurs, deveoping new services and exporing new markets. Often, however, there is a gap between, on the one hand, the need for change and farmers wiingness to adjust and, on the other, the abiity and capacity of innovation agencies and advisory services to effectivey support these changes. It is evident that contemporary agricutura and rura deveopment practices embody different paradigms that coexist aongside one another. The new paradigms have met strong resistance from the od ones, which are consoidated in concrete actors, discourses, institutions, sociospatia patterns, aws and technica standards. Innovation poicies shoud be sensitive and responsive to the coexistence between different paradigms. The centra features of the AKS have often remained argey unchanged yet the issues they need to address are now far more compex. They require a wider range of responses, both in terms of the processes empoyed and the product range. The co-existence between intensive farms producing for word markets and more extensive farmers producing environmenta goods and services and the European vision of a profitabe and sustainabe mutifunctiona agricuture can give rise to conficts. These shoud be recognized, carified and, where possibe, resoved. The roe of innovation poicy The changes described above shoud be refected in the way rura innovation is perceived as we as in the principes underying innovation strategies and innovation poicies. Demanddriven approaches primariy foow the market to identify or prioritize which probems shoud be addressed. However, if we acknowedge the divergence between private and societa interests, we must then ask how innovation poicies can accommodate both in a baanced way. Societa interests (or pubic goods reated demands) tend to be by definition not adequatey addressed through market demand and demand-driven approaches.

44 42 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Ceary there is the need to make a distinction between private interests and pubic interests (tabe 3.1). We cassify them here on the basis of pubic/private interests and on the basis of the predominant paradigm. New actors bring new interests and this can ead to a divergence and confict of interests. However the productivist and integrated paradigms are not aways in confict with each other. As Figure 3.6 (on trends) iustrates, the two approaches coexist, athough they are often effectivey segregated. Whie productivism sti pays the arger roe in terms of and use, production vaue and research and innovation funds, this is not the case for the number of farmers invoved or the share of the rura popuation. Though this duaism may be very rea today, one chaenge for AKIS might be to break down these boundaries and to mobiize resources for mutifunctiona agricuture and rura deveopment in a broad sense. Tabe 3.1 Different orientations for rura innovation poicy goas: a structured overview Productivist paradigm Integrated deveopment paradigm Pubic Reduction of negative externaities (environment, food hygiene) Non trade-distorting support Efficiency of pubic spending Spi over effects of innovation Sustainabe use of natura resources Transition to a ow carbon (bio-) economy Co-production of pubic goods Active creation of synergies between different activities Equity Food quaity Private Growth and productivity Compiance with pubic standards Fufiment of customers requirements Orientation towards arger markets Competitiveness through sustainabe practices Emphasis on vaue added Active exporation of new markets and aternative suppy chains Transition to smart, sustainabe technoogies and renewabe energies and resource use Diversity of farming styes Source: Refection paper, based on Brunori, Rand and Proost, 2007 Each paradigm guides knowedge production and innovation aong different ines. The productivist paradigm remains strong in many countries and the chaenge here is to make it more open to new ideas, vaues and noveties to aow the od paradigm to incorporate new products, processes and deveopments. Innovation poicy can effectivey support the exporation of these new ways, the reated adjustment processes that need to occur in various socio-technica consteations and the necessary coaborations. It can provide a key to competitiveness, the sustainabe use of natura resources and integrated deveopment of rura areas, and, more specificay, the structura changes required for the deveopment of a ow-carbon bio-economy and the adaptation of (agricutura) production systems to anticipated changes in cimatic conditions. Impementing an effective and successfu innovation poicy invoves renewing existing knowedge systems and knowedge brokerage processes and giving institutiona support to nove approaches. Innovation services and agencies need to encourage the active deveopment of new vaue-added markets, products and services. Innovation brokers need to have the skis to faciitate effective processes of earning among farmers, other rura actors and entrepreneurs. The diversity of actors currenty invoved in innovation Rura innovations are guided by different paradigms. The sectora, socia and territoria context a provide different drivers for innovation. A weath of human and socia capita, networking, supportive knowedge and communication infrastructure a contribute to novety production (Van der Poeg et a., 2008).

45 43 The evidence about the compex nature of rura innovation provides a stimuus for adopting a systemic, network-oriented vision. Compex socio-technica systems and hybrid networks are required to stimuate rura innovation. Muti-actor participation and coaboration are preconditions for success. The IN-SIGHT project deveoped the notion of co-production of rura innovation (Tisenkopfs et a., 2011). The concept of socia innovation is particuary reevant here. It underines the interreations that exist between societa transformation and agricutura innovation. Socia innovation describes the responsiveness of innovations to new societa needs and expectations and the deveopment of new socia reations, such as those that are emerging in the reations between producers and consumers. The concept of socia innovation wi be discussed in more detai in the next chapter. An examination of nationa innovation systems (Proost et a., 2008) suggests that a systemic vision of innovation is not yet we institutionay embedded. At the same time case studies (Dockès et a., 2008; Rand et a., 2008a; Rantanen and Granberg, 2008a) have affirmed the muti-actor mode and mutidimensiona character of innovations and their dynamics. These studies confirm that noveties, niches, regimes and andscapes are not necessariy sequentia steps in the evoution of an innovation. Not a innovations foow a uniform pathway of up-scaing or vertica deveopment. In some sectors, such as direct marketing, care farming and rura tourism, innovations remain sma-scae. In rura wefare services (heath care, edery services) innovations may consoidate at the niche or regime eve and foster transformation of the socia wefare system. Vertica deveopment or up-scaing is more characteristic of innovations in environmenta technoogies, especiay in biofues, where energy crop producers have shifted their orientation from oca farming systems to regiona and internationa markets. According to the IN-SIGHT study, innovation starts with actors and evoves through hybrid networks. Athough most innovations require the participation of many different actors, their roes at different innovations stages and fieds varies. End users are recognized as paying an increasingy active roe they provide signas about new societa demands, bring about changes in production and consumption regimes and verify the resuts of innovation. Innovations cannot be compete without consumer/ citizen invovement. For instance, urban demand for recreation in the countryside stimuates innovation in rura tourism; the needs of new rura dweers, such as second home owners, foster innovations in the market and in socia services (Rantanen and Granberg, 2008); in agricutura marketing new ways of consumption stimuate nove forms of direct reations between producers and consumers, such as seing via the internet and soidarity purchasing groups (Couzy and Dockes, 2007); in bioenergy increased citizen awareness about energy issues has stimuated the deveopment of ocay organized renewabe energy chains. For exampe in Denmark bio-energy production from manure is emerging as a side activity for conventiona, arge scae, productivist farmers. Networks of innovation typicay grow as an innovation deveops. During the up-scaing process networks become more compex and hybrid, as new actors become engaged. Especiay at the niche and regime the range of participant increases and actors in the poicy and knowedge domains pay a more visibe roe (Figure 3.7).

46 44 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS Figure 3.7 The increase in actor diversity as innovations deveop Producers Agricutura direct marketing Poicies NGOs Consumers Emergence Producers Niche formation Regimes Landscapes Niches Producers Consumers Noveties Producers Poicies Knowedge institutions Poicies Knowedge institutions Users Renewabe energy production Source: Dockès et a., 2011 As shown by the iterature on innovation and transitions, a regime change (the second order or radica innovation) is associated with a change in the set of rues and norms that govern economic or socia activity. The IN-SIGHT project suggested that a regime shift is cosey tied with a saturation of actor networks, an enargement in the range of invoved stakehoders and more intense interactions between them. The basic mechanism through which innovations unfod and start to bring resuts in terms of economic, socia or environmenta gains can be seen in theoretica terms as the structuration of actor networks and the consoidation of interactions. In everyday anguage this can be expressed as cooperation. Radica innovations can create new regimes in agricuture and RD and provide a response to a range of critica chaenges (competitiveness, sustainabiity, pubic goods, new production and consumption patterns, muti-eve governance etc.). The transition studies iterature (Rip and Kemp, 1998; Rotmans et a., 2001; Gees, 2005) emphasizes that the move towards regimes requires institution buiding. Regimes are invoved in power strugges and can often be hostie towards noveties and niches. Regimes aso compete with each other. Niche-actors strengthen themseves by cooperating and forming networks, thereby actuay exercising innovative power. Regime-actors react by trying to absorb these niches and ooking for a synergetic reationship with niches, in which their innovative power enforces the regime s constitutive power. If the regime succeeds in absorbing niches, a so-caed ock-in occurs. A ock-in is a reverse transition path. If, however, niches are abe to resist such absorption by the regime, they become a threat to the current distribution of resources (Aveino and Rotmans, 2009: ). Such tensions in niche-regime reations are a necessary condition for transition to continue. Landscape transformations, or macro-eve changes, invove even higher stakes and a greater number of contested interests.

47 45 Cooperation between actors, partnerships and the co-production of innovation The cue to radica innovation is cooperation between actors. Cooperation and estabishing formaized partnerships becomes more critica as an innovation evoves. Niches resut from an aggregation of different sma systems into a coherent actor network. Innovators get in contact with partners, knowedge providers, cients, financiers etc. The IN-SIGHT research identified severa forms of innovation partnerships: Custers of businesses and network companies are an efficient organizationa form in rura tourism and wefare service innovations (Rantanen and Granberg, 2008b; Tisenkopfs et a., 2008b). Companies share information about cients, organize coective training, deveop a common marketing strategy, coordinate investment and obby poitica bodies. Muti-actor partnerships are a universay used organizationa form of innovations, used in rura services, agricutura marketing and renewabe energy projects. The partnership principe emphasizes the invovement of various stakehoders (farmers, industry actors, research institutes, etc.) and often requires that a network become formay organized. Territoria partnerships and aiances are compex networks organized on a territoria basis. They can be sectora or cross-sectora. Exampes can be found in renewabe energy projects, regiona branding initiatives, sustainabe food production and consumption programmes, community supported agricuture, care farming and more. Territoria partnerships aim to mobiize and sustainaby use a variety of territoria assets and the incusion of key stakehoders (knowedge institutions, municipaities, entrepreneurs, speciaists with different backgrounds etc.). LEADER groups are one exampe of rura territoria partnerships that have activey contributed to the improvement of the quaity of ife through their activities in education, training, environmenta action, socia integration etc. Pubic-private partnerships between entrepreneurs, oca governments and state institutions are particuary visibe in new rura services, such as care farms and day care services, as we as in the renewabe energy sector. Athough they are effective way to organize and provide pubic services, severa bureaucratic obstaces have been identified, incuding excessivey compex procedures for managing pubic investments. Learning partnerships are estabished for earning purposes. Managing competing interests (productivity growth, environmenta preservation, societa expectations etc.) requires knowedge that can more effectivey be accessed through coective earning and knowedge construction. The IN-SIGHT Project showed that earning partnerships usuay incude grass-root innovators and their professiona associations. Sometimes they are effectivey assisted by agricutura knowedge and extension services. Many successfu innovations have started out from sma communities of practice where peope earn by doing, enhance their skis and set common rues. Communities of practice often are a usefu way to start open-ended innovations when there is a common goa but where skis, practices and new partners have to be acquired. Partnership-buiding eads to the impementation of innovation, a consoidation of the organizationa structure and the mobiization of various resources. Two exampes of rura innovation (in Eastern Finand and Tuscany) suggest, not ony the importance of cooperation between various stakehoders, but aso the vaue of skifu coordination and formaized governance structures. The deveopment of rura services in Finand (Rantanen and Granberg, 2008b) shows how an innovation in the rura wefare service sector, initiated by a group of wefare-entrepreneurs

48 46 THE CONCEPT OF AGRICULTURAL KNOWLEDGE AND INNOVATION SYSTEMS in Eastern Finand, has grown to the regime eve by ampifying its interactions with other networks, which provide financia, earning, marketing and consuting support. A network of companies has contracted the deivery of edery and day-care services from oca municipaities. The Federation of Finnish Enterprises provided consutations for these new wefare companies, and the Empoyment and Economic Deveopment Centre arranged educationa courses. The roe of municipaities was transformed from one of providing services to one of arranging them. The joint company used EU structura funds to buid professiona capacity. The Ministry of Trade and Industry provided crucia funding and support. The network of companies, together with 20 other entrepreneurs from the heath and socia fieds founded a regiona association for heath and socia entrepreneurs, which took over the supervision and training and started to infuence the egisation for the operation of wefare companies. Thus the networks were ampified and the innovation diffused. There are now about simiar networks of service companies in Finand, providing about 200 service products at 1200 service points. The dissemination of this innovation has been a consequence of the mutipication of networks and cooperation between various stakehoders. Another exampe of broad cooperation and co-produced innovations can be found in the experience of Camporgiano viage in Tuscany which estabished a sma-scae coective heating pant (Brunori and Neri, 2008). This initiative began because the municipaity needed to heat some new buidings and repace the od diese heating pant. Round tabe discussions began to expore the possibiities of sustainabe energy provision from oca sources, using ocay avaiabe woody biomass. This woud offer new opportunities for oca forest owners and heating operators and woud aso hep fight goba warming, save energy and money. A oca action group (LAG) Garfagnana Ambiente e Sviuppo was formed and together with the Municipaity of Camporgiano made contacts with ARSIA (the Tuscan Regiona Agency for Deveopment and Innovation in Agricuture and Forestry) the regiona government and environmenta organization which agree to provide support. The LAG provided funding for the biomass project and invoved oca actors. ARSIA coordinated the project and provided training about biomass use to those invoved (pubic administrators, farmers and suppiers). The Itaian Agro-forestry Energy Association took care of the technica side. Through network enargement and buiding coaitions and partnerships a oca energy suppy chain was estabished. In this case, the co-production of innovation generated new rues for forestry and energy use, new soidarities among the farmers and the viage community and new technica competences for oca energy companies. The oca deveopment effects incuded new jobs in the area and improved energy security at the oca eve that aso heped to tacke environmenta probems. The innovation refected a transition from reiance on fossi fue to use of renewabe woody biomass. More experiences on innovation, transitions and the (changing) roe of AKIS are given in Chapter 5.

49 4 CONCEPTS OF SOCIAL INNOVATION Text by Bettina B. Bock 4.1 Summary 5 The Systems of Innovation view (Chapter 2) underines that innovation is aso a socia process between different actors. This is inked to the concept of socia innovation. The concept of socia innovation originates in critiques of traditiona innovation theory. By caing for socia innovation, new theories point at the need to take the socia mechanisms of innovation into account (the socia mechanisms of innovation). A second dimension of the concept of socia innovation is that innovations must take a socia responsibiity into account. Innovations shoud not ony focus on the profit aspect but aso on the panet and profit aspects of sustainabiity (the socia responsibiity of innovation). As innovation is aso disruptive, this can be a chaenging demand. There is aso a third dimension of socia innovation: the fact that not ony commercia activities need innovation, but aso socia and pubic activities. In the context of rura deveopment, socia innovation refers to the (socia) objectives of innovation that is those changes in the socia fabric of rura societies, that are perceived as necessary and desirabe in order to strengthening rura societies and addressing the sustainabiity chaenge (socia incusion / equity: the innovation of society as we as the socia responsibiity of innovations). 4.2 Introduction Socia innovation is often appointed as an essentia part of agricutura and rura innovation. One might ca it one of the buzzwords which become popuar and pop up in poicy arenas and feature as a container carrying a pethora of meanings. Everybody seem to agree that socia innovation is important but what exacty is meant by the term remains often uncear. In the foowing section we discuss the origin of the concept of socia innovation and its use in the context of innovation today. We present a threefod categorisation which provides insight and creates order in the mutitude of appications and interpretations. Section 4 focuses on the significance of socia innovation in the fied of agricuture and especiay rura deveopment, where it figures most prominenty. Section 5 reports on factors of success and risks of faiure in supporting socia innovation in the rura context. Section 6 finay, indicates where we ack knowedge and where more research is needed. We end with some concusions. 4.3 Defining socia innovation The concept of socia innovation is born from the on-going debate and critique on traditiona innovation theory with its focus on materia and technoogica inventions, scientific knowedge and the economic rationae of innovation. It points at the need to take notice of society as a context that infuences the deveopment, diffusion and use of innovations (Edquist 2001), but aso points at the possibiity that innovations bear risks as we as opportunities for society. 5. This Chapter is an adapted version of the briefing paper on Socia Innovation (Bock, 2011)

50 48 C O N C E P T S O F S O C I A L I N N O V A T I O N In the foowing we distinguish between three main interpretations of the socia innovation concept, referring to: The socia mechanisms of innovations; The socia responsibiity of innovations, and The innovation of society. The socia mechanisms of innovation It is common knowedge by now that new technoogies and products affect socia reations, behaviour and attitudes. It is aso commony recognized that the successfu deveopment and introduction of new products and new technoogies depend on its fit into a specific socia context with a specific organisation of socia reations and specific norms and vaues and accepted behaviour patterns. We know, for instance, that inventions may ony become adopted once society is ready to put them into use. Stirrups are often referred to as the cassica exampe for how innovation diffusion depends on favourabe socia conditions, such as the birth of knights as a powerfu socia cass. It is aso an exampe of how powerfuy innovations may affect society. The Ango-Saxons, a dominating enemy of Chares Marte s Franks, had the stirrup but did not truy understand its impications for warfare. The stirrup made possibe the emergence of a warrior, caed the knight, who understood that the stirrup enabed the rider not ony to keep his seat, but aso to deiver a bow with a ance ( ) This simpe concept permitted the Franks to conquer the Ango-Saxons and change the face of Western Civiization. Marte had a vision to seize the idea and to use is. He did not invent the stirrup, but he knew how to use it purposefuy. (Simonson 1995: 12) That the socia context matters, is aso recognised by businesses that take variation in taste into account when introducing products that are new and strange in a particuar pace. Think for instance of the introduction of foreign food, that generay enters in an adapted form in taste as we as presentation. This can be done by making dishes fit into the usua menu-structure of a proper mea (i.e. a burger menu ) or by adapting the origina recipe and offering gried sushi (Lang et a. 2009, Chapter 7). Recent theories about innovation use the concept of socio-technica innovation to expicate the inseparabiity of the socia and technica in processes of innovation (Smith et a. 2010). The construction and introduction of new technoogies aways invoves changes in the interaction of things (artefacts), actors and ways of doing (institutions) and affects and is affected by how society is organised and functions. This is the most evident in the case of system innovations that go beyond the introduction of a new product or process but change the context, manner and meaning of how something is done, and ead to fundamenta changes in many areas of society. Automobiity is such a system innovation, which incudes much more than the invention of the automobie. The regime of automobiity, for exampe, incudes not ony paradigmatic technoogica design for cars, but aso the speciaised road panning authorities, the institutions of the driving icence and motor insurance, the obbying capacities of car manufacturers and oi companies, and the cutura significance of automobiity. In combination, these eements form a socio-technica regime that stabiises the way societa functions are reaised, and gives shape to particuar patterns of producing and consuming mobiity (Smith et a. 2010: 440).

51 49 Based on these insights a new (systemic) anaytica framework is deveoped the muti-eve perspective on socio-technica transition (MLP) that expains why, how and where innovations may occur and ead to wider transitions, what preconditions favour innovation and how such a process may be fostered by innovation poicy (Smith et a. 2010; Moors et a. 2004). The socia responsibiity of innovation In cassic economic thinking innovation is considered important because of its abiity to increase profit and encourage economic deveopment (Voeten et a. 2009). Sti today innovation is often associated with industries deveoping new products and new technoogies driven by their wish to maximise profit. At the same time, technoogica innovation is increasingy met by scepticism and concern about potentia risks for i.e. human safety and the environment. The debate about genetic modification may serve as a we-known exampe for these concerns that more in genera point at the need to evauate the socia impact of innovations and to find out who are the winners and osers in innovation processes. There is aso a ca for innovation that heps soving important socia probems, such as environmenta degradation. A this may be summarised under a ca for socia or sociay responsibe innovation: innovations that are ethicay approved, sociay acceptabe and reevant for society. Sociay responsibe innovation cas upon businesses to invest in society and to come up with sociay reevant innovations, as part of their corporate responsibiity for peope and panet and not ony profit. Some theorists argue that the process of innovation has to change as we (Gees & Schot 2007). Socia innovation requires new - socia - methods of innovation, characterized by processes of co-design or co-construction and coaboration with society. As a resut the range of innovationactors changes and research and deveopment are no onger the excusive domain of science and business; with the incusion of users the roes of, and reationships between science, market and (civi) society change. Their exchange and combination of knowedge becomes an important eement of the innovation process as it goes beyond the creation of more knowedge. It changes perspectives and ways of ooking at things, vaues and behaviour; and in doing so guides the deveopment of sociay acceptabe and reevant products and processes. Reated to this process of coaboration in innovation, various authors underscore the importance of socia and creative earning as the mechanism of socia innovation. We discuss the idea of socia or coective earning more in detai in the context of agricuture and rura deveopment in section 4.5. The innovation of society Socia innovation is finay referred to when indicating the need for society to change as a prerequisite for soving pertinent probems such as discrimination, poverty or poution. Here the focus is on changes in socia reations, peope s behaviour, and norms and vaues. It is often interchanged and combined with concepts such as socia empowerment and incusion, socia capita and cohesion. The Stanford Centre for Socia Innovation departs from such an interpretation and defines socia innovation as foows: Any nove and usefu soution to a socia need or probem, that is better than existing approaches (i.e., more effective, efficient, sustainabe, or just) and for which the vaue created (benefits) accrues primariy to society as a whoe rather that private individuas.

52 50 C O N C E P T S O F S O C I A L I N N O V A T I O N Simiar cas for socia innovations can be found in various government programmes. Aso the Europe2020 strategy document defines socia innovation in the sense of socia incusion as one of her priorities. To design and impement programmes to promote socia innovation for the most vunerabe, in particuar by providing innovative education, training, and empoyment opportunities for deprived communities, to fight discrimination (e.g. disabed), and to deveop a new agenda for migrants integration to enabe them to take fu advantage of their potentia (Europe 2020 strategy document, 2010, p.18). By stressing the need to incude and give voice to sociay deprived groups, the poitica eement of innovation is underined. In any innovation processes it is important to keep a cose eye on who are considered to be incuded in the innovation processes and who not, and who are eventuay to gain or ose from the changes brought about. Socia innovation is aso strongy reated to the innovation of poitics and governance. Foowing Mouaert et a (2005) innovative governance aows for the incusion of non-traditiona actors, integrates various poicy issues and centres on area-based deveopment. It shoud, moreover, stimuate experimentation and stimuate risk taking as innovation is based on creative, out-of-the-box thinking and the possibiity to earn through tria and error. Concusion From the above we may concude that socia innovation is a compex and mutidimensiona concept that is used to indicate the socia mechanisms, socia objectives and/or societa scope of innovation. The socia mechanisms of innovation refer to the fact that the deveopment, diffusion and use of innovations aways occur within a socia context, and in interaction with socia reations, practises and norms and vaues. As a resut, there are generay winners and osers and it is important to evauate the socia impact of innovations. Innovations shoud be socia in the sense of sociay acceptabe, reevant and ethicay appropriate. This may be achieved by sociaizing innovation methods and re-organising innovation as a socia and coective earning process with the purpose of the common definition of probems and common design and impementation of soutions. Finay, socia innovation refers to the inducement of re-organising society with the purpose of more equaity and socia justice. In the atter case, the concept of socia innovation is not ony an anaytica and academic concept, but aso used in a normative way, stressing the need for socia and poitica change. It is, hence, important to be aware of the poitica eement of (socia) innovation and to anayse which kind of (socia) changes are considered desirabe and deserving governmenta support and which not. 4.4 Socia innovation in agricuture and rura deveopment Processes of innovation have been studied and anaysed in different contexts and paces and at various spatia scaes such as nations and sectors (Tödting & Tripp 2005), but aso regions, cities and (deprived) neighbourhoods (Mouaert et a. 2005). This section starts with a brief ook into regiona innovation and regiona factors of success and faiure that might be reevant for innovation in rura areas. From there it proceeds to socia innovation in the context of agricuture and rura deveopment. Regiona innovation Scientists and poiticians increasingy acknowedge the importance of knowedge and innovation for the competitive advantage of regions. Within that fied the earning region is a

53 51 frequenty used concept to indicate those regions, which are successfuy promoting innovation (Morgan 1997). Learning regions are ocations with a strong socia and institutiona endowment that exhibit continuous creation and diffusion of new knowedge and high rates of innovation (Hauser et a. 2007: 76). Taking the region as a patform for knowedge exchange underines the importance of earning as a coective process. Regions are expected to promote coective earning because they aow for the spatia proximity of innovation organisations and actors (Tödting & Tripp 2005). The reative proximity of actors is seen as especiay important for the exchange of tacit knowedge - that is informa, non-codified, experientia knowedge, that may even be unconscious and habitua. Tacit knowedge needs persona interaction and face-to-face contacts for its transmittance (MacKinnon et a. 2002: 301). Its transference depends on what is aso caed untraded interdependencies (Storper 1997 in Tödting & Tripp 2005) the tacit conventions and informa agreements that peope make to trust each other and to coaborate. Critics of the earning region approach point at the fact that many networks are not pace-based and stretch across different paces and regions. They are especiay important because they provide inkages to externa networks and structures and thereby actors and knowedge that may not be avaiabe within the region (Dargan & Shucksmith 2008). Periphera regions are regarded as ess innovative in comparison to aggomerations because of their ack of human capita and innovation attitudes. Important drivers of innovation are absent because of their organisationa thinness and ack of dynamic custers and support organisations and because of their distance to other regions and externa knowedge (Tödting & Tripp 2005: 1208). Athough the earning region concept has been widey empoyed in regiona studies, it has rarey been appied to rura regions, possiby because the institutiona structures it prioritizes are more ceary visibe in urban centres. Rura areas may be periphera in the sense of organisationay thin as we as geographicay remote, but they may score high in terms of socia density and, hence, socia capita and a shared sense of identity, a of which are important factors promoting earning regions (Wofe, forthcoming). Rura regions, moreover, differ in peripheraity and in innovativeness. There is, hence, a need to ook more in depth into what defines the innovativeness of rura areas. Agricuture, rura deveopment and innovation The term socia innovation is popuar in the context of agricuture and rura deveopment but the use and importance attached to it differ according to the domain and scope of innovation referred to. In addition it has a considerabe poitica or normative weight. First of a, socia innovation is most frequenty used in the context of rura deveopment as it is here where the need for socia changes is most evident. When rura deveopment is concerned, the socia is presented as a core eement of innovation, aso in the sense of engaging society in deveoping new soutions. When it comes to stricty agricutura deveopment in the sense of production efficiency, socia innovation is generay considered of ess significance. Here a technoogy-oriented definition of

54 52 C O N C E P T S O F S O C I A L I N N O V A T I O N innovation predominates (Moors et a. 2004). This has aso to do with the different scope of innovations referred to above; agricutura deveopment, as such, often deas with innovations in the sense of new products or new processes whereas rura deveopment regards the innovation of socio-economic systems. But what kind of innovations are needed, in which domain and what the need is for socia innovation, is aso highy contested in the poitica arena of agricuture and rura deveopment and the Common Agricutura Poicy (CAP) (High & Nemesis 2007), where agricutura modernization and mutifunctiona rura deveopment meet as conficting paradigms and soutions to the sustainabiity chaenge. For who supports mutifunctiona rura deveopment, foresees the need for fundamenta socia changes in organisation, behaviour as we as vaues and attaches great importance at socia innovation as essentia part of the soution and part of a coective earning process (Knicke et a. 2009). For who supports agricutura modernization has high expectations of scientists and their capacity to deveop and design new technoogies. The ambivaent use of socia innovation, as an anaytica as we as normative concept, compicates the definition and description of its significance and meaning in the fied of agricuture and rura deveopment. In order to reduce and disentange this compexity, we make again use of the three-foded categorisation of the concept introduced in section 4.2. In practice, however, the three categories of interpretation are strongy interreated. Socia mechanisms co-production of rura innovation In the past socia mechanisms were considered as important when reaching the phase of diffusing innovations, when experts transferred new knowedge, products and/or technoogies to users and convinced them to accept and use them. Traditiona Agricutura Knowedge Systems (AKS) are based on this approach. The new systemic approaches stress the importance of socia mechanisms as basic eement aso during the deveopment phase. Innovations are seen as born from coective and creative earning processes and the mutua exchange of knowedge. Learning is no onger structured as a inear transfer of knowedge from teacher to student, but becomes a shared, socia, and circuar process, in which the combination of different sources and types of knowedge creates something new (Oreszczyn et a. 2010; Stuiver et a. 2004). This type of earning is in itsef innovative as it aows for a new (cross-border) consteation of actors to coaborate, who come from different backgrounds and have different interests (Tovey 2008). Socia innovation is then put on a par with coective and creative earning. At the same time it is aso more than an innovationmethod, as it aso produces (socia) innovation in the sense of new skis, products and practices, as we as new attitudes and vaues (Rist et a. 2007; Bruckmeyer & Tovey 2008). The EU LEADER programme is a good exampe of an innovation poicy that is based on this approach. Starting as an experiment in some European regions, it has been mainstreamed as crosscutting-axis for the oca deivery of rura deveopment pans in the present CAP ( ). LEADER represents a territoria, participatory and endogenous approach to rura deveopment. Foowing its phiosophy it is important to enabe the inhabitants of rura regions to reaise their own deveopment pans, making use of oca resources and oca knowedge. LEADER faciitates oca capacity buiding by supporting the creation of oca and extra-oca networks (Convery et a. 2010; High & Nemesis 2007; Dragan & Shucksmith 2008; Lowe et a. 2010). In doing so LEADER intends to create favourabe conditions for the socia mechanisms of innovation to function.

55 53 There are more exampes where nove practices are born from the interaction and exchange of knowedge and experience between socia groups that did not use to interact, such as farmers and citizens. We-known exampes regard environmenta cooperatives in which farmers coaborate with citizens (Wiskerke et a. 2003), or consumer-buying groups where urban consumers enter in stabe reations with farmers (Lamine 2005). Based on the above we may define socia innovation as coective and creative earning processes, in which actors from different socia groups and contexts participate, resuting in new skis, products and/or practices, as we as new attitudes and vaues and new behaviour. Socia objectives responsiveness to new socia needs The ca for more responsiveness to socia needs and expectations is a strong driver for innovation of the agro-food system (Lowe et a. 2010). Recent food scares are a good exampe, but aso oudy uttered concerns about GMO, anima wefare and environmenta degradation and decining biodiversity exempify this pubic ca. Continuousy returning are aso critiques that point at the damaging effect of the gobaization of agricutura production and trade on deveoping countries. Finay, the socia and economic decine of rura areas has been pointed at as one of the externaities of agricutura modernisation and the traditiona production oriented agricutura support systems. Likewise, as consumers have prospered, they have become much more discerning and judgementa about the quaity and whoesomeness of their food and the treatment of animas and nature in its production. As a consequence, the ethics of intensive farming have been caed into question, and the discourses of commodity productivism chaenged by those of sow food, organic, wefare-friendy and food chain ocaization (Lowe et a. 2010: 288) The ca for what might be framed as responsibe agri-rura innovation is received in various ways, refecting different approaches to innovation. At the one hand we see attempts to meet socia concerns by way of new technoogica designs, that reduce the negative effects. This is often achieved through more efficiency and reduction in either energy demand or pouting emissions (i.e. precision agricuture). In addition, representatives of society are increasingy consuted about their concerns at some stage during the deveopment of new products or technoogies. The purpose is to find ways to reconcie socia concerns with the requirements of modern production. Such consutation processes have for instance accompanied the design of new stabes for pigs and poutry (Grin et a. 2004). The promotion of a new (rura) paradigm of mutifunctiona, integrated deveopment is another, more radica response to socia concerns, that attempts to change the agro-food system as a whoe. It seeks to repace what is indicated as the productivist modernisation paradigm by a system in which farmers no onger aim to maximise production against minima costs but instead deveop new products and services, such as oca, high quaity food, nature conservation as we as rura tourism and green care (Roep & Wiskerke 2004). Combined with the ideas of endogenous, territoria deveopment (see 3.2.1) the mutifunctiona paradigm positions farmers as one of many rura actors who exchange knowedge and ideas, combine their products and practises and in coaboration re-vitaise the rura economy by creativey responding to the ca for agricutura change. In the above, we find two definition of socia innovation. First of a, socia innovation refers to a socia process of innovation a process where the creation of noveties (new products,

56 54 C O N C E P T S O F S O C I A L I N N O V A T I O N technoogy and knowedge) is based on the coaboration of different socia groups, that crosscut traditiona borders. Secondy, innovations are referred to as socia innovation when the nove products and practices respond to pubic needs and demands. Socia transformations - Changing (rura) society When rura deveopment and agricuture are concerned, socia change is aways impied. Changes in urban and rura ifestyes drive and demand innovations. It is, for instance, often argued that concerns about anima wefare typicay arise in rich, urbanising societies, where citizens became estranged from farming (Boogaard et a. 2010). But aso in the socia mechanism of innovation and co-production of innovation, socia change is impied through the crossing of rura-urban boundaries and re-estabishment of their reations, as we as the deveopment of new attitudes and vaues. But socia change may aso be the expicit purpose of innovation processes. This is most prominenty the case when rura deveopment, in the sense of oca deveopment, is concerned and when the objective is to re-integrate rura societies that are perceived as margina. Attention is then focused on the socia sustainabiity of rura areas that may be endangered due to the oss of abour in agricuture, outmigration and the weakening of the socia structure as a resut of an ageing and mascuinising popuation (Manos et a. 2010). Socia innovation is then appointed as a coective strategy to rescue and revitaise rura societies. Again, LEADER is a good exampe for a poicy (and deveopment phiosophy) that aims at reaising socia change. Some even present LEADER as synonymous with socia and cutura innovation (Dargan & Shucksmith 2008:274). LEADER is based on the idea that a we-functioning society is a sociay cohesive society, that has arge stocks of socia and cutura capita, which function as a substrate for continuous innovation, needed for assuring ong term sustainabe rura deveopment. LEADER seeks to strengthen communities in that sense. It seeks to promote socia interaction, the creation of interna and externa networks, to support capacity buiding, the deveopment of knowedge and skis but aso to buid up confidence and sef-esteem as we as a positive coective identity (Dargan & Shucksmith 2008). Socia innovation, then, refers to those changes in the socia fabric of rura societies, that are perceived as necessary and desirabe in order to assure their surviva. It reates to socia structure but aso to attitudes and vaues and the wiingness of peope to engage for the coective good. Concusion From the above we may concude that the concept of socia innovation is most frequenty used in the context of rura deveopment. It is rarey referred to when the deveopment (or innovation) of agricuture as a singuar economic activity is concerned. In the discussion about rura deveopment as an integra process of socio-economic deveopment of rura areas, socia innovation has a prominent pace. The concept of socia innovation is used to refer to the socia changes that are considered essentia to reaise sustainabe rura deveopment, and at the same time at the sociay innovative process of earning that is necessary to reaise these changes. More in detai socia innovation refers to those changes in the socia fabric of rura societies, that are perceived as necessary and desirabe in order to assure their surviva. It reates to socia structure but aso to attitudes and vaues and the wiingness of

57 55 peope to engage for the coective good. It incudes coective and creative earning processes, in which actors from different socia groups and rura and urban contexts participate. Together they deveop new skis, products and/or practices, as we as new attitudes and vaues, that make a difference in addressing the sustainabiity chaenge and in strengthening rura societies. Agricutura innovation has an important pace in discussions of rura deveopment in the sense of a mutifunctiona agricuture, that is seen as important part of or even motor of rura deveopment. Here we see aso discussions about the need for agricuture to change in order to produce in an ethicay appropriate way, to respond to socia concerns and to hep contribute to more socia justice in society at arge. Agricutura innovation is then approached in an integra way, part of a genera process of change towards sustainabiity. Apart from this discussion agricutura innovation is generay approached as a singuar production activity. For what concerns its innovation attention usuay focuses on technica and economic aspects with socia acceptabiity as a concern when negative reactions foow their introduction. 4.5 Success and faiure of socia innovation in rura deveopment This section summarizes the factors supporting or impeding successfu socia innovation in current practices of rura deveopment. In doing so we distinguish between two eves of anaysis. We start with discussing the factors that strengthen or weaken the potentia for socia innovation in rura deveopment processes. We then ook more in detai into the conditions that support or constrain those processes of socia earning that are considered as an essentia part of the socia innovation process. Success and faiure of socia innovation in rura deveopment Rura deveopment is unthinkabe without socia innovation as a resut as we as a mechanism: it incudes the revitaisation of the socia fabric of rura societies and at the same time thrives on the innovative engagement of oca society members. When it comes to the promotion of territoria rura deveopment the existence of abundant human and socia capita has been appointed as a prerequisite (Kinsea et a. 2010). Socia networks need to be present in a given area that ink peope within the region but aso connect them to other paces. These networks need to be based in trust and reciprocity. Peope need to be wiing to vountary engage for the coective, which is fostered by a common sense of identity (Dargan & Shucksmith 2008). Coective engagement is easier to achieve in stabe ong asting networks that are used to coaborate and have mutua interests (Oreszczyn et a. 2010). But new opportunities for earning and fresh insight occur especiay when different networks meet. This may aso easiy evoke conficts as credibiity and trust need time to grow. This is where so-caed boundary agents or brokers pay an important roe in encouraging the deveopment of a shared anguage and shared ideas. Some individuas pay a key roe. They are trusted and respected by many peope, thereby connecting wider networks. Their charismatic personaity and persona engagement convince others that it is trustworthy and worthwhie to join in (Dargan & Shucksmith 2008). These eaders have often moved into the region from esewhere and are abe to bring in new knowedge and new networks of contacts, that ink the territory to extra-oca, nationa or even internationa networks.

58 56 C O N C E P T S O F S O C I A L I N N O V A T I O N As Einor Ostrom (2009, 2010) has pointed out time and again trust in one another and confidence that norms of reciprocity appy, are crucia for communities to engage in coective action and to care for their common good. Ony then are peope ready to invest time and other costy resources in order to deveop something which benefits a. Research in European rura societies confirms that it is difficut to promote oca deveopment in paces with a weak entrepreneuria cuture, with ow eves of service, a weak civi society and no history of coective action, with itte institutiona capacity, pre-existing cientaistic power reations, and a top down approach through the oca government (Dargan & Shucksmith 2008). Cienteism and oca interest obbies are constraining oca deveopment as they imit the extent of oca participation and excude not ony certain socia groups but aso certain deveopment options (Convery et a. 2010). This, again, erodes the egitimacy of oca deveopment groups and pans and undermines peope s wiingness to activey engage in pans that are captured by powerfu others (Vida 2009). The atter is aso probematic when oca deveopment becomes too much controed by pubic authorities, either by way of bureaucratic requirements or by predefinition of themes and actions. Quite often government is counterproductive by framing the innovation-agenda in a certain direction. But reuctance of community members to join oca deveopment groups and to assume responsibiity may aso be reated to a (perceived) ack of experience and confidence (Scott 2004). It specificay hampers the incusion of socia groups that are generay weaky represented in oca poitics, such as women, young as we as edery peope, and ess educated citizens (Bock & Derkzen 2008). This is detrimenta to the process of socia innovation as it thrives on the input of something new and different, and the turning around of ordinary and traditiona patterns of thought and behaviour. This is why the participation of new groups, such as women and young peope, and the mixture of traditiona segregated actor groups are so important. But as entrance of new actors into decision making arenas changes oca power reations, these actors often meet resistance. Again, the poitica nature of (socia) innovation becomes visibe, in defining who is invited in to discuss and decide on which changes need to be reaised and how. Aowing new actors to effectivey bring in their knowedge and ideas and have the groups function in a way that aows for socia innovation, needs poitica attention and support (Derkzen & Bock 2007). Success and faiure in socia earning and co-designing innovations Socia earning and the coective deveopment of creative soutions are considered to be an essentia part of socia innovation. They are, as it where, the mechanisms that set socia innovation in motion. Supporting socia earning then means supporting socia innovation (Cundi 2010). Socia earning means that peope start questioning their traditiona way of doing things, and deveop new ideas, new norms and attitudes, and new modes of behaviour. That is a demanding process, that requires the creation of favourabe conditions or spaces (Schneider et a. 2009): These paces are safe and removed from traditiona poitica tensions and power reations; There is an atmosphere of trust and respect for difference; There is room to get to know each other; There is a shared purpose that needs the combination of different experiences and different types of knowedge.

59 57 This open space of coaboration has aso been indicated as the agora - with the ancient Greek word for pubic space (Poh et a. 2010). It indicates the need to meet and enter into diaogue as equas and to go beyond the traditiona differences in roes, authorities and identities. Muti-stakehoder earning processes, if adequatey conducted, opens space for peope incuding scientists and poicymakers to speak about their assumptions, vaues, and norms so that decisions become based ess on the defence of autonomous interests and hidden meaning and more on appreciation of the interdependency of coective interests. (Steyaert & Jiggins 2007: 584). Moreover, the knowedge that is produced shoud be credibe, saient and egitimate for a the invoved actors, which requires discussion and agreement on possiby divergent goas and vaues (Poh et a. 2010). Such knowedge is more readiy produced when the participants are coectivey engaged in action when something has to be done and produced that is inked to concrete needs and therefore motivates and mobiises participation and engagement (Steyaert & Jiggins 2007; Widemeersch 2007). A this, however, takes time as we as faciitation. Various studies point at the important roe of faciitators who bring together different actors, form a bridge between different contexts and create favourabe conditions (Schneider et a. 2009; Kerkx & Leeuwis 2009). Box 4.1gives an overview of successfu faciitation strategies. Box 4.1 Successfu strategies for faciitating socia earning Aowing actors with different perspectives and interests to have access to the process; Aowing participants to be part of the process; Activey integrating new participants; Carifying roes; Estabishing persona reations; Organising informa, biatera meetings and meetings at the participants ocations to get to know each other s ife-word; Showing commitment, engagement and sensitivity as faciitator; Coaborating on a specific product, concrete goa; Seeking common interests and iaisons; Organising situations where distinct actors are addressed as experts ; Pacing persona experiences at the centre of coaboration and not scientific resuts; Refecting on the participants distinct perspectives and knowedge; Enabing nove and positive experiences. Buiding on previous earning processes. Source: Bock (2010) Capabe faciitators shoud aso be abe to faciitate confict as confict is part of earning and coaboration. The same is true for error, which shoud be acknowedged as an important source of earning (Cundi 2010). What it comes down to is creating a room for interaction where it is safe to question what one aready knows, to admit that others might know something vauabe, to share uncertainty and, then, to earn and create something new. The above aso points at the important roe that the government can pay in faciitating socia innovation by offering spaces for interaction, supporting network formation and providing funds that enabe continuing coaboration and faciitation (Kerkx & Leeuwis 2009).

60 58 C O N C E P T S O F S O C I A L I N N O V A T I O N It is difficut to encourage socia earning when there are no safe and nurturing spaces avaiabe. More specificay there is a high risk of faiure when possibiities for interaction are acking (i.e. time and space). This aso means that it is more difficut to achieve in areas with a weak infrastructure, ong distances and/or poor transport faciities that hamper direct communication (Cundi 2010). The atter poses specific probems for the incusion of those groups, that often have difficuty to access means of transportation such as women, the young, edery and poor. When the actors invoved are too different in terms of their frames of reference or ifewords, working methods, interest, and priorities, it may be difficut to coaborate in an open manner. Socia earning is aso inhibited when there is a ack of trust between the actors, when there is an imbaance in power and when one type of knowedge is seen as superior to other forms of knowedge (Schneider et a. 2009). The atter is often a probem when academics and non-academics meet. But it aso pays a roe when actors of different socia standing and power meet. Finay, the knowedge brokers or faciitators need to be capabe and of good faith - their credibiity and egitimacy needs to be beyond doubt. In case of pubic funding it must be cear that they are not acting as hidden messenger on behaf of the government (Kerkx & Leeuwis 2009: 858). Government needs to reaize that innovation brokers cannot be used as a directive instrument as they typicay are invoved in muti-stakehoders processes in which government may be one of the stakehoders and thus participates in an on-going negotiation process. 4.6 Knowedge gaps and research questions Rura deveopment in margina areas Athough there is penty of research on rura deveopment, we sti ack insight in how to support the deveopment of the most vunerabe rura areas. It is here where (socia) innovation is most needed but where the socia structure is most fragie as a resut of outmigration, economic decine and socia marginaisation. Especiay in the new member states we may find these areas, which are not ony geographicay remote but aso socio-poiticay at the periphery of the EU (Vida 2009). LEADER projects have difficuty to start off in these regions as there is a ack of entrepreneuria peope and ack of confidence in the oca capacity to act. These are areas where there is itte empoyment, where markets and cients are far away and where many and especiay women and young, entrepreneuria peope decide to eave and seek their fortune esewhere. In these areas of continuous decine it may be necessary to buid up the quaity of ife before peope may be convinced that oca engagement is promising and worthwhie (Bock 2010). Sometimes participatory deveopment poicies seem to enabe the most powerfu to hi-jack deveopment pans and funds. It is pertinent to know better how we manage to bring in sociay margina groups (Kerkx & Leeuwis 2009). It is aso important to get more insight into the roe that oca governments pay especiay in the margina rura areas and the new member states. We need to understand better how their cose invovement in oca communities might actuay constrain participatory deveopment processes because of tight knit poitica aiances or the doube engagement of oca governors in poitics as we as enterprises (Convery et a. 2010).

61 59 Evauating socia innovation There is aso a need to earn more about how to evauate processes of socia innovation (Reed et a. 2010; Kerkx & Leeuwis 2009). Evauations are generay focusing on concrete and possiby quantifiabe resuts. But how can we measure coective earning and how can we evauate what has been earnt? When is socia innovation or socia earning successfu? And what is to be abeed as the outcome and the process? Athough socia earning may be both a process (of peope earning from one another) and an outcome (the earning that occurs as a resut of these socia interactions), it is often defined in reation to the wide range of additiona potentia outcomes it may have. (..) In particuar, socia earning is frequenty confated with pro-environmenta behaviour. (Reed et a. 2010: 3). In some monitoring and evauation methods refection upon the process of earning and changes in knowedge, attitudes and vaues have an important pace (Miero et a. 2010). In doing so monitoring and evauation becomes part of the earning process and contributes importanty to its effectiveness. The atter may even be seen as their most important objectives. But it might be usefu to consider how such toos might be appied in a more detached way with the main goa not to contribute to earning but to measure outcome. It woud aso be usefu to compare the effectiveness of different socia earning arrangements, such as muti-actor networks, partnerships, communities of practice, producer-consumer associations, hybrid innovation networks, territoria aiances. The arrangements differ in how they organise the process of coaboration and interaction that promotes earning, and whom they invite as participants. They become increasingy popuar and are seen as promising ways to improve the interconnection between science, poicymakers and society at arge, but we sti ack insight in how and to what extent they indeed encourage (socia) innovation. 4.7 Concusion In this Chapter we carified the different use and definition of the concept of socia innovation. For the purpose of AKIS and SCAR it is most important to get insight into its meaning and significance in the context of agricuture and rura deveopment. Poicy makers need more insight into agricutura and rura innovation as a socia process in order to better support the transition towards sustainabe agricutura and rura deveopment. The anaysis underines that socia innovation is part and parce of any innovation process, be intended or not. There are socia mechanisms at work in a processes of change and next to a of them bear socia consequences. But when it comes to meeting the chaenge of sustainabiity socia innovation is of particuar interest. Rendering agricuture and rura deveopment sustainabe requires not ony changes in individua behaviour and attitudes but eventuay the re-organisation of the agro-food system as a whoe. And this is socia innovation, par exceence. Socia innovation in agricuture and rura deveopment appoints the outcomes that form part of a sustainabe agricutura system and vita rura societies, as we as to the socia processes that are necessary to reaise these changes. It reates to the structura re-organisation of the agro-food system, changing attitudes and vaues and the wiingness of peope to change their behaviour and engage for the coective good. But it aso incudes the preceding socia processes of earning, coaboration and negotiation, in which actors from different socia groups and rura

62 60 C O N C E P T S O F S O C I A L I N N O V A T I O N and urban contexts participate. In other words - socia innovation is indispensabe, a sine qua non for a transition towards sustainabiity. Consequentiay it is indispensabe for those invoved in AKIS to better understand how the process of socia innovation may be supported and steered in such a way that it indeed produces a sustainabe agro-food system that aows for the re-vitaisation of rura societies. So far socia innovation gains most attention in the context rura deveopment and mutifunctiona agricuture. It is crucia, however, to gain more insight into the socia aspects of any innovation in the agro-food system and to make sure that citizens concerns are responded to. The sequence of recent food-scares demonstrates how concerned and dissatisfied the pubic is and how vunerabe the existing system is to negative consumer reactions. There is an urgent need to respond to the ca for a more transparent and more responsibe agro-food system. This requires much more than technoogica adaptations and underines the need for the re-organisation of the agricutura production-system as a whoe. Such a systemic innovation necessariy incudes socia innovation and, hence, respect for citizens worries about the negative effects of the actua system and their concern to create a system that safeguards human, anima and panetary wefare as we as their wish to have a voice in the governance of agro-food innovations. This Chapter has outined what the features of socia innovation are, what its preconditions are and how it may be supported. But socia innovation shoud not be considered as just another instrument of governance and change. The fufiment of the promise of contributing to more sustainabiity incudes a commitment to socia responsibiity and justice. The chosen direction of change needs to be sociay acceptabe and reevant and embedded in democratic decision making processes. Last but not east, it is essentia to keep an eye on the socia consequences of the changes and reaised and to make sure that costs and benefits are fairy distributed.

63 5 EXPERIENCES IN THE MEMBER STATES Text by Anne Vuysteke with contributions from members of the CWG 5.1 Introduction After the more theoretica refections and considerations on the AKIS and the particuar case of socia innovation, this fifth Chapter aims to give an overview of experiences with AKIS in European countries and regions. The main focus is upon the organisation and dynamics, incentives, AKIS poicy and, finay, monitoring. The anaysis buids upon countries and regions 6 presentations and discussions during the meetings of the SCAR Coaborative Working Group on AKIS. Additiona information comes from case study reports and other reevant documents provided by the country representatives. It is important to understand that the Chapter wi not attempt to compare cases (contexts differ too much to do so), but aims to earn from the country experiences and the avaiabe evidence. Rather than giving a country per country overview, the text therefore addresses common issues and iustrates these through exampes. 5.2 AKIS and its actors Genera findings The theoretica concept of AKIS was the starting point for the anaysis. The experiences indicate that AKIS do exist when studied in the actua context of countries and regions. The concept is moreover usefu to describe nationa or regiona AKIS and to refect upon the reevant poicies. The descriptions of the AKIS under study show that there is a huge diversity between countries and regions. Differences not ony exist in the reationships between the AKIS subsystems (research, extension, education and support systems), but aso different actors are invoved. Even actor names and their positioning within subsystems may be different between countries. Therefore we concentrated on the organisation and dynamics, incentives, motives and considerations in AKIS poicy in stead of ony describing systems. It can therefore be concuded that there is no One size fits a formua for what the idea AKIS is. Important differences in the nationa or regiona farming are at the basis of this finding and concern for instance the institutiona framework, the characteristics of the agricutura sector, the competitive position of the agri-food sector, the nationa history, etc. The question on how many or how few organisations and institutions are needed to make the AKIS work is therefore dependent on a countries specific situation. Particuary the ink between (appied) research and farmers via extension varies in the cases under study. Dockès et a. (2011, based on Laurent, 2006) identify five archetypes of how extension services can be organized: 6. It concerns the foowing countries and regions: Baden Württemberg (Germany), Denmark, Estonia, Finand, Fanders (Begium), France, Hungary, Ireand, Itay, the Netherands, Turkey and United Kingdom.

64 62 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Mainy privatized systems for extension (e.g. the Netherands, the UK, some states in Germany) where the funding mainy comes from direct payments from farmers, but couped with high state funding for research. Co-management between farmer organizations and the state (e.g. France, Finand and some states in Germany), with pubic funding, partia payments by farmers and farmer organizations. Semi-state management (e.g. Teagasc in Ireand which has a board with representatives from the state, industry and farmer organizations); Management by the state through regiona organizations or institutions (e.g. Switzerand, Itay and Finand). Uncoordinated individua innovation nuceuses. These archetypes iustrate an evoution from a top-down and transfer-of-technoogy orientation (mainy in the state management archetype) to more compex new coaborative extension systems and patforms, which require the adoption of new configurations and organizationa structures, open to mutipe actors. The new arrangements are based on the decentraization of extension in combination with privatization measures aiming at the improvement of advice, through the invovement of NGOs, producers organizations and private businesses (Cristóvão et a., 2011) AKIS subsystems or components From the country descriptions, it is cear that each of the AKIS subsystems is determined by other actors. Athough definitions and notions can differ between countries, the foowing paragraphs aim to give a genera overview of the actors invoved in the four AKIS components or subsystems: research, extension, support system and agricutura education. The government has a dua roe in the AKIS. Government and reated agencies are not ony an actor within one or more subsystems, but the government has aso a system responsibiity. The government poicies reguate each of the subsystems, but can aso have a decisive roe in the interaction between the subsystems. In many cases, severa governance eves (EU, country, and region) are of reevance. Such mutieve governance is especiay chaenging in federa states, as regiona structures and programs are framed within and designed by nationa structures. In addition each of AKIS subsystems are aso part of more genera systems ike the genera education system or science poicy. Research A first group of actors in research are universities. Both dedicated agricutura universities and facuties or departments of genera universities are invoved in agricutura research. University coeges are cosey reated to the universities. A second group of research actors are government research institutes, that both operate under the auspices of agricuture-reated ministries or science ministries. The focus of these research institutes can be very broad and cover many agricutura-reated research domains, whie other countries opt for a more sector- or research domain-oriented approach. In the atter case, there are severa research institutes, each with a distinct focus. Other research actors with a pubic background are funding agencies, strategic research centres, knowedge centres, diverse research institutes (for appied research) regiona deveopment

65 63 agencies, technica institutes, associations and experimenta stations. In many centra European countries the Academies of Science pay an important roe. Next to the pubic research and knowedge institutions, many countries aso have independent (private) research providers. These research organisations can be purey focussed on basic and appied research (supported through project funding or party through genera pubic funding ike the Research Institute of Organic Agricuture FiBL in Switzerand), whie others coaborate with the private sector (e.g. coaborative research in the UK, Strategic Centres for Science Technoogy and Innovation in Finand and coaborative research with the industry through the Sustainabe Agricuture and Food Innovation Patform in the UK). Needess to say that (big and/or internationa) companies in agrochemicas, seed, machinery, computer software, etc. aso have their own R&D activities. Box 5.1 Strategic Centres for Science Technoogy and Innovation (Finand) The Finnish Strategic Centres for Science, Technoogy and Innovation are pubic-private partnerships for speeding up innovation processes. They are constituted as muti-sharehoder imited companies and carry out ong-term cooperation in fieds most critica for the future. Exampes are CLEEN Ltd., focused on energy and environment, SaWe Limited, concerning heath and we-being, and Forestcuster Ltd. Source: Box 5.2 Technoogy Strategy Board - Sustainabe Agricuture and Food Innovation Patform (UK) The Technoogy Strategy Board is a business-ed executive non-department pubic body promoting research, technoogy and innovation ( This 5 year programme (aso supported by DEFRA and BBSRC) is funding coaborative projects (matching the investment by industry) on crop protection, sustainabe protein production, and the next competitive ca wi cover the food chain. Source: Defra/House of Lords enquiry Box 5.3 Network for Appicative Research in Agricuture (France) The Network for Innovative Research in Agricuture is at the cross-road of farmers needs and the expectations of civi society. Created and managed by farmers, the agricutura R&D institutes are organisations dedicated to appied research, experimentation, technica support, expertise, training and dissemination. Their operationa mission is to adapt upstream research resuts to the fied or region context and to buid and manage appied research projects to fit specific farmers expectations. Speciaised by sector, they represent a task force of 1000 appied scientists and are spread in the main regions of agricutura production. The agricutura R&D institutes are private entities supported by a scientific board and benefiting from specific pubic funds under the supervision of the Ministry of Agricuture. A frame agreement is signed by the network co-ordinator and the Ministry of Agricuture that sets the frame in which the agricutura institutes, actors of appied research, carry out missions of pubic interest and impement the nationa rura and agricutura deveopment pan. They are positioned at the interface between upstream research and deveopment (transating the needs expressed by end-users, integrating knowedge, testing technoogies), support pubic decision, transfer and disseminate resuts to end-users. A majority of these R&D institutes quaify for pubic funding in reation to the ministry expectations, and to their scientific and technoogica competences. A simiar type of organization and procedure exists for both agricutura and agro-food R&D institutes. Source: and

66 64 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Extension Extension services represent a wide variety of hybrid soutions between purey pubic extension on the one hand and competey privatized systems on the other (Cristóvão et a., 2011). In Germany for exampe, the shift from pubic to private funding goes on. A governmenta or chamber extension services charge fees now for service in private interest. Sometimes the fees are not yet fuy cost recovering what eads to unfair competition with the fuy private providers. Pubic funding for private provision is ony happening in a few fieds, and is not reay progressing (water protection, famiy advice, etc.). Awarding extension programmes by contracting is not reay introduced (German Soinsa report). In most countries, a combination of different types of extensions services can be found. Many of them are (party) funded by the government, but a gradua change towards market orientation can be noticed. Pubic support is directed merey to activities supporting poicy targets such as the environment, biodiversity (sustainabiity). Other actors in the extension subsystem are membership organisations, commodity boards, experimenta stations, government departments, Centres for knowedge transfer and associations. The Farm Advisory System (FAS) within the European Rura Deveopment Poicy is an exception, as it is a mandatory eement in the programming period The approach taken and the degree of centraity of the service providers however differ between countries. Aso the degree to which the FAS (set up to increase the awareness of farmers on materia fows and on farm processes reated to areas covered by cross compiance) has been interfaced with other farm advisory services and extension greaty differs between countries at this point in time (Angieri, 2011). Because of these interactions, the organisation of the extension subsystem is rather compex in most EU member states. Some countries have for exampe simiar extension services next to each other. This is for exampe the case in Hungary with the Farm Advisory System, the Farm Information Service and the Network of Viage Agronomists. Other member states, ike Estonia, have instaed a centra body in order to coordinate extension services. In Finand, extension is we-embedded in broady-based agricuture and rura advisory services incuding business panning and investment services, technica advice for production, and management and IT support. Such services are mainy carried out by membership associations, which are owned and administrated mosty by farmers. However, these services are supported by state aid from the Ministry of Agricuture and Forestry. In some countries, there is an important degree of interaction between extension services and the support system. In Itay, the support system is even inside the extension system and is a subsystem of the atter. With its deveopment objectives, the extension system is thereby coordinated by the pubic authorities but is managed and impemented by different bodies, aso private in some cases. The support system, instead, is supported excusivey by the pubic, the ony that can afford the high cost of the advanced eve technica instruments the system provides. Farmers interest in extension services hugey differs between countries. Whie some services are ceary co-funded and co-managed by the sector (e.g. the Danish Agricutura Advisory Service and French and German agricutura chambers), there is a cear ack of interest and trust in other countries (e.g. in Latvia and Hungary).

67 65 Box 5.4 Danish Agricutura Advisory Service (DAAS) The Danish Agricutura Advisory Service (DAAS) is owned and managed by farmers, via their membership of farming organizations. The DAAS main responsibiity is to suppy Danish farmers with management toos and advice reating to a aspects of farming, incuding farm accounting, production and farm management. Its principa tasks are: To offer farmers the best possibe technica know-how and support with regard to production methods and economy To provide guidance in specific situations for the panning and impementation of production To record and process technica and economic data as a basis for the everyday management of the individua hoding To organize courses for the further education of farmers To act as a ink between the farmer and the research and experimenta institutions To prepare accounts and tax returns for the farmer and to provide farm management advice, incuding finance The Advisory Service thus bridges the gap between agricutura research and primary farming, and ensures that new know-how is put into use on the farm and in the fied as quicky as possibe. This benefits the farming industry and its associated community. The DAAS is furthermore user paid, offers advice in a aspects of the farming business, is officiay and universay recognized as impartia and it has no inspection tasks on behaf of government. Organizationay, DAAS consists of 31 independent oca advisory centres throughout the country and one nationa knowedge centre, which provides the oca centres with the atest information from both Danish and foreign research Source: OECD AKS Response Denmark Next to extension services, other private actors aso provide support to farmers. Farmers merchants and suppiers are very active in this fied and combine product saes (e.g. anima feed, seeds, fertiizer and pesticides) with knowedge transfer. The extension cost is then incuded in the product price. Advice and accounting offices and NGO based advisory services are other exampes of private actors invoved in extension. Support system The support system is the most difficut subsystem to describe in a coherent way. Farmers organisations and producers associations are the most prominent actors within this system, just as cooperatives. Other actors in nationa support systems are member owned organisations (e.g. ProAgria in Finand), Chambers of agricuture, product boards, institutes to support poicy making, and based coeges, apprenticeships, information systems, financia organisations (mainy agricuture-reated banks and insurance offices), funding and evauation agencies, non-sectora innovation support toos, socia security schemes and internationa organizations such as FAO and CGIAR. Box 5.5 ProAgria (Finand) The Finnish ProAgria is a member-owned organisation, that was founded in The organisation has 16 regiona advisory centres nationwide, a staff of 685 peope (out of which 660 in the fied) and a membership base of Funding is provided by the state (16%), cients (65%), projects (18%) and others (1%). Together, these account for an annua turnover of 49 miion (2011) and around cients annuay. Ca. 80% of Finnish farms utiize ProAgria services. Operations concern: Advisory services based on face to face advice at the farm, but aso a rapidy increasing number of e-services An on-ine advisor registry where the cient can search for an advisor and make an appointment The advisor charges the cient for services The overa advisor ski deveopment is supported through an integrated knowedge management system and AdvisorAcademy in-service training Additionay nationwide expert teams, which form a separate organization within the ProAgria group. Source: ProAgria pubic presentation

68 66 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Box 5.6 DLG as a knowedge broker (Germany) The DLG (German Agricutura Society) was founded in 1885 by engineer and author Max Eyth. It has over 20,000 members and is a eading organization of agricutura and food industry. Key characteristics of DLG are its freedom and independence, the commitment to progress and internationa orientation. Fieds of activity are impart knowedge, exhibitions ike Agritechnica and Anuga, testing of equipment and resources and testing of foods. Within the DLG center around 200 fu-time staff and 3,000 vounteer experts work together to address the chaenges facing the industry. More than 80 committees, working groups and committees are the foundation for expertise and continuity in the technica work. For any topic of reevance there are working groups mixing practitioners and scientists, private and pubic sector experts (Ausschüsse). A working groups come together once a year in the Hauptausschuss getting a report on current DLG activities and discussing actua issues. The information is pubicy offered in congresses (DLG-Wintertagung) and in smaer events parae to the great trade fairs (Agritechnica, Eurotier) where technica and commercia innovations are presented. Science, practice and guidance work together cosey inked. The DLG Academy with its seminars and the Trainee Program provides key skis for the future. Source: and German Soinsa report Box 5.7 EU-Patform of Chambers of Agricuture Working in 14 European countries (Austria, Croatia, Czech Repubic, Estonia, Fanders, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Poand, Sovakia and Sovenia) with about empoyees in more than 150 independent Chambers of Agricuture, the chambers provide extension and advisory services for more than 5 miion farmers, as we as for oca authorities, appied research agencies and rura enterprises. Chambers manage numerous experimenta stations, test areas and research aboratories for appied ife science. Knowedge transfer from research to farm eve and the way back is the daiy job. On EU-eve there is an informa network of Chambers of Agricuture, handing, transating and promoting EU-poicies with a focus in agricuture, environment, appied ife science and regiona deveopment. Source: EU Chambers of agricuture (2011) Agricutura education Initia agricutura education refers to activities in the period before a professiona career. Further education and formation activities during professiona activities and coaching to farmers are considered as a part of the extension subsystem. When it comes to agricutura education, distinction can be made between higher and secondary education. Secondary education in agricuture is mosty offered by specific technica and vocationa schoos. These either resort under the Ministry of Education (as a part of the traditiona education system) or as green education under the Ministry of Agricuture. Higher education foows the secondary education (whether agricutura or more genera education) and is provided by universities and higher education coeges (or university coeges). Severa countries have made deep changes in their structure of higher education in order to adapt it to requirements derived from the European Higher Education Area (Boogna Process). In some cases, this evoution seems to have deteriorated the quaity of education. In Finand, in addition to the universities, the technica universities, and the universities of appied science ( poytechnics ), there are wide range of vocationa institutes, which are maintained either privatey, or by government or municipaities. About 70 of these vocationa institutes offer courses reating to management of natura resources (agricutura, forestry, horticuture, water resources, natura environment etc.). A number aso offers faciities which can be utiised for experimenta work and therefore these are increasingy interacting with higher education and research.

69 67 Box 5.8 Pace of secondary agricuture education in the AKIS in France France has an extensive network of secondary agricutura schoos, both pubic and private, scattered a over the country. This network is funded by oca governments and by the Ministry of agricuture, who is in charge of overseeing its activities. Most agricutura schoos have a farm that represents the dominant cropping/ivestock systems in the area. Athough farms attached to the schoos are run as genuine economic entities geared towards profit, they are aso used for pedagogic purposes as we as for experiments. Such farms have a significant roe as demonstrators of innovative soutions in their area. For instance the proportion of the agricutura schoo farming area under organic farming is 21%, much above the nationa average (3%). Agricutura schoos and their farms are engaged in innovation and rura deveopment projects in partnership with research centers, extension services, associative networks and private firms. Nationay thematic networks have been estabished within the agricutura secondary education community in order to provide technica/ scientific backstopping to their members on a given subject, faciitate exchanges of knowedge and experience, as we as the aunching of initiatives and projects. Through its pace within the French AKIS, the secondary agricutura education system both contributes to and benefits from the genera innovative effort in agricuture. Source: Ministry of Agricuture and Box 5.9 DEULA (Germany) Bundesverband DEULA e.v. is a network and umbrea organization of 12 independenty operating DEULA Training Centers. DEULA is the shortened form of German Training Centers for Agricutura Engineering (Deutsche Lehranstaten für Agrartechnik). A of them are non-for-profit organizations. The existence of DEULA can be traced back to the year 1926 when Germany s agricuture underwent a great shift from anima-draft to motorization. Today, DEULA promotes agro-technica measures designed to maintain and improve agricutura and horticuture competitiveness in a goba market society. DEULA supports the deveopment of agricutura and horticuture engineering through vocationa and professiona training, contributes to rura panning and advocates heath and safety precautions incuding the aims of environmenta protection especiay in the wide range of food production and agricutura engineering. DEULA s cients are diverse: nationa and internationa deveopment organizations, donor and recipient governments and ministries, agro-industria enterprises such as manufacturers of agricutura machineries, suppiers of equipment, trading companies, professiona bodies of agricutura mechanization and engineering, research centers, universities, technica coeges, education and training institutions. The areas of activities for exampe concern coordination of range and subject of training measures at technica coeges, training centers and at worksite, training of teaching staff, extension staff and project staff, transfer of modern teaching technoogies and methods, panning and setting up management training, consutancy and panning of agricutura engineering training centers, support in deveopment and impementation of nationa and regiona agricutura mechanization strategies, support in deveopment and impementation of agricutura machinery testing centers and organization and conduct of taior-made courses, seminars and study tours as means of promoting an internationa exchange of experience and transfer of know-how. For more than 80 years the centra idea and registered trademark of DEULA reads Lernen durch Begreifen (Learning by doing). Basis of the pedagogica work is a modern teaching concept, pay in the practica orientation and competence orientation an important roe. History has given evidence that this experienced-based earning breeds confidence and accuracy in manufacturing, service and in the use of agricutura machinery. Source: DEULA Other actors within the AKIS In some countries, there are aso actors identified within the AKIS. These for exampe concern museums, benevoent NGO s and pressure groups for diverse topics, media, aboratories, inspectorates, boards, centres and offices within the jurisdiction of the ministries concerned. Aso innovation assessment organisations fa outside the proposed components of the AKIS.

70 68 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Reationships between subsystems The reationships between AKIS subsystems are in most cases not made expicit by the government or the actors invoved. The AKIS descriptions show that there are severa factors that can faciitate interaction between AKIS components. Exampes are the mutipe roes of actors (e.g. universities are invoved in research and education) and mixed research or technoogica units, but aso coaborative efforts by individua actors. Coaboration between subsystems can aso be promoted by common vaues and principes. The Dutch and Swiss AKIS are for exampe based on principes such as openness, proximity, synergy, absorption capacity of externa information, connection mechanisms between stakehoders and institutions, pubicprivate cooperation, and supportive institutiona and organisationa arrangements. In recent years, initiatives deveoped to deiberatey connect subsystems. Such initiatives can be found in many countries. The Dutch Transforum, Green Knowedge Cooperative and Innovation Network, the French Agreenium, the Finnish LYNET research consortium for natura resources and the environment, the Spanish Knowedge Patform for Rura Areas and Fisheries and the Femish Patform for Agricutura Research are ony some exampes. Box 5.10 Patform for Agricutura Research (Fanders) The Patform for Agricutura Research was founded in 2004 and brings together representatives of reevant research actors (universities, the Institute for Agricutura and Fisheries Research, university coeges, experimenta stations), farmers organizations, ministeria cabinets, government departments and a funding agency. The Patform serves as a sounding board for poicy deveopment and a contact point with the agricutura research fied. The Patform is the forum for consutation and agreement between agricutura research and agricutura poicy in order to achieve innovation and to promote entrepreneurship in agricuture; between agricutura research and the agricutura sectors to ensure and improve mutua knowedge transfer and the use of knowedge; between agricutura research institutions themseves to ensure optima aignment In recent years, the patform has deveoped a vision on agricutura research, events were organized on knowedge transfer between researchers and farmers, the funding mechanism of agricutura research was evauated and the White paper on agricutura research was pubished. The Patform operates in a thematic ways and the envisaged themes in 2011/2012 are knowedge transfer and coordination with the industry, internationa vaorisation of Femish agricutura research, deveopment of muti-discipinary research projects, instaation arge-scae infrastructure and coordination with other funding bodies. Source: Vuysteke & De Schepper (2011). Box 5.11 Agreenium (France) In France, a consortium caed Agreenium has been created. This new pubic scientific co-operation institution comprises six actors: INRA, CIRAD and three among the biggest agricutura coeges. The consortium was set up to co-ordinate its members resources and skis at the interfaces between research, training, deveopment and the internationa dimension. It is responsibe for promoting and impementing specific actions to meet the needs of its founders, as we as the expectations of its French and internationa partners. Source: Soinsa paper & OECD response France

71 69 Box 5.12 Agricutura Research Advisory Board (Turkey) The Advisory Board for Agricutura Research has been created to bring together reevant agricutura research actors such as government departments from the Ministry of Food, Agricuture and Livestock (MoFAL), reevant science departments of universities, TUBITAK, farmers organizations, chamber of professiona organizations. The responsibiity of the board is to make recommendations to the Genera Directorate of Agricutura Research and Poicies(GDAR) on the foowing subjects: deveoping of institutiona, physica, human and financia capacity of the GDAR setting priority areas of agricutura research, making proposas in ine with the needs of the poicy-driven projects, transferring of the research resuts to decision-makers, industriaists and end users Source: AKIS dynamics Next to the differences between countries, AKIS aso change over time. The evidence iustrates that severa member states have restructured their AKIS consideraby. Various causes and motivations are at the base of these deveopments, such as the improvement of efficiency, budget cuts or poicy deveopments. These evoutions iustrate the dynamic character of AKIS. As a consequence, AKIS descriptions are ony a snapshot at a certain moment, but do not give insights in the underying deveopments. The Netherands has for exampe privatised its state extension service, eading to competition, and has merged its appied research and agricutura university into Wageningen University and Research Centre. It positions this Wageningen UR as a third generation university with innovation in its mission and cose reations between strategic and appied research. Learning innovation networks are an important poicy instrument to address systemic coordination issues. France has witnessed a custering in the so caed Pôe de competitivité a regiona custering with specia projects to support consortia (abeit ony margina in the fied of agricuture). Denmark is a simiar exampe, where appied research was merged into regiona universities. The introduction of the Farm Advisory System ed in Hungary to the introduction of a Farm Advisory System in addition to the Farm Information Service (organised by the Chambers of agricuture) and the Network of Viage Agronomists (and agri-business). These evoutions, in accordance with a countries history, ead to very different AKIS stories and backgrounds. Whie the German extension services for exampe have a 200 year-history, Latvia s nationa AKIS is reativey new and has been significanty transformed during the ast 20 years. In this case, many AKIS institutions were inherited from soviet times, but had to be reorganized to meet the needs of new private farmers. Processes of constitutiona reform are another factor of dynamism in AKIS and its subsystem. Especiay federa states have known a gradua process of division of power between the nationa / federa eve and the regions, states or Länder. These decisions not ony structure the AKIS at a certain moment, but aso shape the future. Extensive autonomy of regions can ead to important differences and a imited interchangeabiity. In 2001, the Itaian Constitution was - in part - changed in favour of a more recognized and active roe of the Regions in the agricutura research fied. The Regions and Autonomous Provinces coud now identify research programmes and autonomousy fund research projects taiored to the specific requirements of their oca agricuture and agro-industry system (Constitutiona Law n. 3, 18/10/2001). Federaism in Germany - being for a

72 70 E X P E R I E N C E S I N T H E M E M B E R S T A T E S ong time a reative advantage compared with more centraistic neighbour countries ike France turns into a disadvantage: uncoordinated parae funding of organisations and actions owers the effectiveness of the ess money spent. And much energy is wasted in undesired competition instead of being used for cooperation (German Soinsa report). The evoutions in countries and their AKIS can be observed in severa ways, but a very cear exampe is the changes in the names and the organisation of agricutura ministries over time. Whie Fanders and Itay sti have a Ministry of Agricuture and Fisheries, Hungary has a broader Ministry of Rura Deveopment, Germany added Consumer Protection, and the Netherands chose for an integration into the Ministry of Economic Affairs, Agricuture and Innovation. 5.4 Incentives The refection paper reveaed severa disconnections between the AKIS-subsystems. Differences in incentives between subsystems were identified as an important driver of this observation. The foowing paragraphs further expore this statement by inventorying the incentives that are used within the subsystems. The incentives that are aimed at encouraging interaction and cooperation between subsystems are aso discussed Incentives aimed at the subsystems Incentives are generay specific for each of the components (research, education and extension), but funding is the principa common incentive instrument. The foowing paragraphs give a more specific overview of the incentives in each of the subsystems. Research was traditionay spit into two categories - basic and appied but recenty, a third category has been incuded. Transationa research is characterised by muti-discipinary approaches, and by interaction between academic research and industry practice (House of Lords, 2011). These different types of research and their target audience (universities, appied research, pubic research, experimenta stations and businesses) can a be found in agricuture. Universities are incentivised based upon the number of students (often a combination of enroed and graduated students), the tota amounts of study points, the number of pubications in (peer reviewed) journas and the citations. Together, these indicators point towards exceence in research. Governments furthermore provide funds for infrastructures, targeted and non-targeted research, baseine funding, research and deveopment programmes. An important part of these funding mechanisms are based on competitive cas for proposas. Recenty, some countries have improved their incentives towards a more integrated system which aso takes vaorisation and transationa aspects into account (e.g. the Netherands and UK), the type and number of products weighed on the number of researchers (in Itay) or with a greater emphasis on the socia and economic impact of research (ike in the UK). Next to government funding, research institutes can aso use their sef-earned resources (revoving funds) which incude diverse revenues from services deivered or products sod and revenues from research contracts with the private agro-food industries, and internationa research organizations. The transfer of money from universities to agricutura departments of these universities is in most countries uncear. Factors that determine the size of this transfer in other countries are

73 71 the historica money fow, the number of students (both enroed and graduated) and strategic panning aspects. Government research institutes are not ony active in the competitive project market, but aso receive a structura funding by the government. The size of this funding is mosty based on historica mechanisms, but performance indicators are designed to evauate the impication of research programmes. Criteria in Fanders are for exampe the nature of research, pubications, interaction with the sector, etc. The incentives for appied research are quite different from universities, as students are here of esser importance. Government funding is both provided at programme eve (e.g. strategic research in the Netherands, MTT s research programmes in Finand and Nationa Research Pans in Itay) and by project funding through competitive appication. In the UK, basic research is funded by Research Councis (for exampe the Biotechnoogy and Bioogica Sciences Research Counci), whie Defra and other Government Departments are important funders of the more appied agricutura R&D. Industry aso funds appied research where benefits can be quicky deivered. Rura deveopment pans aso provide funding to appied research in some countries. In France, additiona funding is done through recurrent funding inked to the farm gross income, the interprofessions (40%) and incentives for participation in mixed technoogica units and coaborative projects. The incentives for experimenta stations are simiar to appied research (funding at programme and project funding), but can be extended with subsidies (sometimes based on a historica precedent) to cover operationa costs, investments in infrastructures and specific funding mechanisms (e.g. demonstration projects within the rura deveopment programmes). The experimenta stations are cose to the farming practices and can therefore aso be driven by commercia reationships (ike seing seeds) and active coaboration with farmers in order to deiver practica soutions. In Finand, former regiona experimenta stations now within the MTT system sti pay an important roe in regiona economic deveopment programmes. A fina group of actors that can engage in research are businesses, mainy food companies and input suppiers. Severa countries provide R&D tax credits for a companies that undertake R&D expenditures, but support is aso given through innovation schemes and to coaborative projects with research institutes. The UK Sustainabe Agricuture and Food Innovation Patform for exampe aims to stimuate new technoogica deveopments for increasing food production, whist reducing environmenta impact. The first competition cas addressed crop protection and sustainabe proteins, and a future focus wi be on reducing food chain waste and greenhouse gas emissions. The Dutch Frontrunners-window provides another ange, as it seeks ways to change innovation-bocking reguation. Competitive project funding is an important type of incentive for a types of research institutes. The criteria used for money aocation are very diverse and cover for exampe the content (contemporary and innovative topic), the scientific and technoogica quaity of the project and its management, vaorisation aspects, coherence with regiona programming, productive sector invovement, participation in internationa networks, previous projects and pubications, patents or pant variety rights, etc. Extension: the government infuence is imited in the case of private extension companies. In some cases, service providers shoud be recognised by the government to carry out their

74 72 E X P E R I E N C E S I N T H E M E M B E R S T A T E S activities. The payments by the farmers are thus the most important driver for the actors in the private extension sector. Agri-business companies (ike seed suppiers) combine their advice with a product transfer. The extension cost is in this case impicity incuded in the product price. Pubic extension services get incentives through diverse channes, such as the farm advisory system and other RDP measures, extension programmes on pubic issues and project funding. Within the agricutura chambers, eections shape the activities and incentive system. The budget is a combination of funding by the members and the government. The UK aso has a evy approach within the Agricuture and Horticuture Deveopment Board which funds appied research and reated knowedge transfer/exchange to improve the competitiveness of producers in the main farming sectors. Box 5.13 Recognition of advisory centers (Estonia) In Estonia, there are 15 advisory centers, one in each county, mosty private and non-profit organizations reated to producers or farmers unions. However, to guarantee the certain eve of the services in every county, a of the centers have fufi certain requirements (e.g. number of advisors, fieds of services provided, action pan for the near future, etc.) and have been approved as advisory centers by the minister of agricuture. Source: Ministry of Agricuture Support systems As with the private extension services, the government support to support systems is amost absent in this subsystem and wi thus not be discussed. Agricutura education The funding to secondary education in the agricutura fied is generay based upon the number of students (enroed and/or graduated), the types of studies, the schoo and student characteristics, the teachers professionaism, student outcomes, human resources, popuation and age of the schoars. Simiar to secondary education, universities are funded based upon the number of students (enroed and/or graduated) and the types of studies. Other eements are didactics evauation (number of professors versus numbers of students, number of graduates empoyed) and operation costs. Often a historica basis is combined with a rewarding basis (e.g. in Itay and the Netherands) Incentives for coordination between subsystems Athough the components of the knowedge and innovation systems react to different incentives, exampes of coaboration can be found in practice. A common content, proximity, mutua advantages and institutiona coordination activities are the main drivers of interaction between AKIS subsystems. When it is obvious that the advantages exceed the transaction costs, cooperation is more ikey to come from the actors themseves. When this is not the case, government support or iustration of benefits wi be needed to stimuate actors to do so. In some countries, experiments can be found where governments provide incentives to activey stimuate these reationships, abeit sometimes on a rather ad hoc basis (without a cear or genera strategy).

75 73 Overap of actors and staff between subsystems provides a first eement for further coaboration, but this interaction is aso supported by the knowedge fows and the transation into practice. Exampes of initiatives that stimuate such interaction are the Dutch initiatives Innovation Network and Transforum. Aso in the Netherands, appied research projects can dedicate 10% of the budget on communication and dissemination, in order to better vaorise research resuts and the so-caed Green Knowedge Cooperative has a budget to ink educationa institutes between themseves and with research. Universities of Appied Sciences in Switzerand have to offer higher education (mosty pubic funding) whie at the same time carry out projects of appied research (mosty private funding). Other interactions are driven by businesses and farm managers who need research support to expore their innovative ideas. Severa countries have specific support schemes to stimuate this type of interaction. The Dutch SBIR (Sma Business Innovation Research), the R&D support programme for private sector, university and non-governmenta organisations in Turkey and the Femish Coaboration on Innovation program are ony a few exampes. Other ways of stimuating the reationships between subsystems are the coordination of innovation driven research by independent task forces (organics and mutifunctiona agricuture, Netherands), joint technoogica networks, European Technoogy Patforms, innovation networks to ink innovative ideas, entrepreneurs and knowedge institutes in specific innovation projects. Box 5.14 Joint Technoogica Networks (France) Joint Technoogica Networks are innovating partnerships between research or university, appied research, extension, higher and secondary education. They were created by the Ministry of Agricuture which provides funds devoted to management costs during a 5-year period. They aim at organizing synergies between AKIS actors in order to promote innovation by de-fragmenting research, deveopment and education, and to form a visibe, recognised competences group that can be mobiised by professiona organisations or decision makers. An a priori assessment process seects networks which have identified common chaenges and priorities and which present a consistent program and partnership. Networking promotes co-earning between different actors with various discipines and professiona activities. Joint Technoogica Networks provide expertise centers (state-of-the art, thematic synthesis, resource pooing) and a pace for the emergence of common innovative projects with a rea everage effect. Dissemination and vaorisation are centra objectives, the products being taiored to end-users (for extension, research or education) with various communication vectors. Source: Box 5.15 InnovationNetwork (the Netherands) InnovationNetwork deveops ground-breaking innovations in agricuture, agribusiness, food and green spatia panning and ensures that stakehoders put these into practice. These innovations are focused on ong-term sustainabe deveopment. InnovationNetwork seeks to kick-start these ground-breaking innovations by deveoping breakthrough concepts which, once impemented, catayze radica and far-reaching change.the concepts are aimed at pursuing new ideas and perspectives - by abandoning estabished assumptions (such as with the Network s Temporary Nature concept), by embracing far-reaching ambitions (such as with Antibiotics-Free Chains and the North Sea Fisheries Projects), or by embracing a revoutionary new approach (such as with Market for Manure). Far-reaching changes can never be brought about by a singe organization, no matter how big. So InnovationNetwork cooperates with many stakehoders. The organization consists of a bureau with a imited number of staff, a director and a board. Together they work on projects with an extensive network of parties comprising changing coaitions of civi society organizations, businesses, government agencies and research institutes. InnovationNetwork was set up by the Ministry of Economics, Agricuture & Innovation (EL&I). InnovationNetwork is aso affiiated with this Ministry, but fufis its tasks from a position of independence, under the management of its own board. Source:

76 74 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Box 5.16 European Technoogy Patforms European Technoogy Patforms (ETPs) provide a framework for stakehoders, ed by industry, to define research priorities and action pans on a number of technoogica areas where achieving EU growth, competitiveness and sustainabiity requires major research and technoogica advances in the medium to ong term. Some European Technoogy Patforms are oose networks that come together in annua meetings, but others are estabishing ega structures with membership fees. They work on deveoping and updating agendas of research priorities for their particuar sector. These agendas constitute vauabe input to define European research funding schemes. Since they are deveoped through diaogue among industria and pubic researchers and nationa government representatives, they aso contribute to create consensus and to improve aignment of investment efforts. Avoiding dupication and making the most of poes of exceence and best practices is one of the great chaenges of European research, and ETPs are a very good vehice to improve synergies. ETPs foster effective pubic-private partnerships, contributing significanty to the deveopment of a European Research Area of knowedge for growth. Pubic-private partnerships can address technoogica chaenges that coud be key for sustainabe deveopment, for the improved deivery of pubic services and for the restructuring of traditiona industria sectors. The European Commission does not own or manage European Technoogy Patforms, which are independent organisations. The European Commission did, however, support their creation and remains engaged with them in structura diaogue on research issues. Source: Box 5.17 Foricuture Technoogy and Innovation Network (Sietinet, Fanders) The Foricuture Technoogy and Innovation Network SIETINET (Sierteet Technoogie en Innovatie Netwerk) has grown from the Femish ornamenta companies strong focus on innovation, which has ed to an important roe in the word market. Nevertheess, the companies shoud aso dea with an increasing pressure from internationa competitors. Technoogica advances are important to remain competitive and the companies can thereby rey on the eading position of Femish knowedge institutes and to access to scientific knowedge wordwide.but the transation of research resuts into practice doesn t aways go smoothy and it is not aways cear for companies which ideas are feasibe. Therefore, innovative companies in the horticutura industry and knowedge institutes together gave rise to SIETINET in In 2008, IWT granted support to the continuation of this cooperation by a four years subsidy. The subsidy covers 80% of the costs and the remaining 20% is paid by the participating companies.so far, sixty foricuture companies and nine knowedge institutes have joined the network. Through this coaboration, recenty deveoped techniques in pant biotechnoogy are now easier accessibe and can hep the innovation process. SIETINET empoys a technoogy consutant (based in ILVO), which ensures a smooth fow of information from scientific research into Femish foricuture companies. Recenty deveoped techniques in the fieds of in vitro technoogy and processing, pant physioogy and growth reguators, DNA marker technoogy and genes are made accessibe, but the technoogy consutant can aso hep in the innovation process as product innovation and improvement are crucia for the Femish ornamenta growers.the members are informed through various channes: technoogica advice by phone, mai or farm visit, profound technoogica advice (research custom of the company), workshops, symposia, newsetter, maiing iterature bimonthy and a website (with protected members area). Based upon The reationship and interaction between support systems and extension is a very particuar and difficut one to tacke. Whie both systems are integrated in Itay, this is not the case in other countries. Coordination by the government (through EU and own funds) is one way to better aign both systems. In Hungary, for exampe, the Ministry of Rura Deveopment contros the Farm Advisory System, and funds both that and the Farm Information System (through EU funds), and the Network of Viage Agronomists from its own budget. In the UK, from January 2012, the Farm Advisory Service expanded an origina focus on cross-compiance to incude nutrient-management, competitiveness, cimate change adaptation and mitigation and provides routes to reevant onine information.

77 75 Throughout a types of interactions, the internet has payed a crucia roe. As actors in the AKIS are spread across countries, web-based instruments are a hepfu too to make knowedge and information avaiabe. This evoution towards a knowedge exchange approach shoud enabe greater participation in comparison with a knowedge transfer approach (Spedding, 2010). It is however difficut to measure the use and degree of cooperation initiated by these instruments. Particuar cases of cooperation between different actors is shown in the foowing boxes on foricuture in Fanders, fruit growing in Latvia and F1 vegetabe seed production in Turkey. Box 5.18 Latvia State Institute of Fruit-Growing (Latvia) LSIFG is an entry point in extended knowedge and praxis compex. The institute empoys 60 researchers, coaborates with Latvian Fruit Growers Association (Latvijas Augļkopju asociācija) with more than 300 members. The forms of cooperation incude research, demonstrations, consutations, product innovation, popuarization of science. LSIFG is engaged in many activities: research, extension, education, cutura activities, internationa coaboration etc. The institute is a eading organization in two broader coaborative arrangements under formation: the Latvia Food Patform (in coaboration with food industry and enterprises), and the State Research Centre for Agricuture and Food industry (in coaboration with other research institutes). Thus the case woud provide mutipe knowedge fows and earning between farmers, scientists, entrepreneurs, poicy makers and other actors. There is a strong eement of knowedge brokerage that can be studied in this case as we as changing roes and identities of researchers. The case potentiay might iuminate aso the young researchers as knowedge brokers and women researchers as pioneers in knowedge brokering. The proposed LINSA is interesting because the network is very diverse and there are many directions of knowedge exchange and forms of earning. LINSA as an exempar of broader transformation of knowedge systems in Latvia characterised by universities, research institutes, poicy makers, market actors and civi society opening-up for cooperation. The director of LSIFG is interested to coaborate with SOLINSA project. Athough this is not farmers network per se, farmers invovement is strong through coaboration with LAA, severa micro initiatives at oca eve (e.g. Pūres dzirnas a mobie juice making equipment), individua reations with fruit growers and processors. LSIFG deveops its own definitions of sustainabiity, ike maintaining the oca varieties, preserving the horticuture tradition, estabishing inks between horticuture, tourism and cutura activities, appying integrated pest management. Actors: research institute, state research centre, Latvia Food Patform, Latvian Fruit Growers Association, fruit growers, farmers, municipaity. Source: Latvian Soinsa case Box 5.19 F1 hybrida vegetabe seed production (Turkey) Considering private seed companies and farmers demands, a specia project Deveopment of F1 hybrid vegetabe varieties and pubic private partnership for seed production was initiated in 2004 in Turkey with the co-operation of 5 research institutes of MoFAL/GDAR, 6 pubic and 1 private university and 30 private seed companies. In addition to this, extension services of MoFAL, seed seers, farmers, consumers, input suppiers (fertiizers, equipment, pesticide etc.) have aso invoved in this project. The Government encourages the private sector by providing infrastructure and incentives, faciitates interaction between actors.the main goa of the project is to increase the usage of hybrid seeds derived from oca varieties from 10 % in 2004 to 60 % at the end of the project (in 2014).The other objectives of the project are to train of technica stuffs from pubic and private sector, to deveop inbred materias with high quaity characteristics (in pant breeding, inbred ines are used as stocks for the creation of hybrid ines), to test them against biotic-abiotic stresses and nematodes and to deiver these inbred ines to private sectors. By using these ines, private sectors can deveop new commercia hybrid varieties. It is aso expected that coaborations between researchers and private companies from the agricutura sector can foster ongterm partnerships across sectors and improve the transfer of research resuts into innovative appications Athough this is a good exampe for pubic research, academia and private company coaboration in the agricutura sector, there is a necessity for competing the cyce of innovation by fu integration of farmers, seed associations, supporting organizations, consumers etc. a) Hybrid Seed: seed produced by the first generation obtained from crossing parenta forms. Source: and

78 76 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Coherence of incentives The previous paragraphs have shown that incentives are in genera specific to the AKIS components and that a cear incentive system for cooperation in the innovation network is absent. Ony individua initiatives and isoated actions stimuate interaction. The Coaborative Working Group therefore did a first and cautious exporation of the coherence of incentives. The resuts strongy differ between countries/regions. In Fanders, a system anaysis of the instruments that support innovation in agricuture was carried out in 2010 (Vuysteke & Van Gijseghem, 2010). The resuts show that the avaiabe incentives mainy support actors on the one hand and knowedge and earning processes on the other. The coherence of the instruments is judged to be good, but there is a ack of instruments that reay contribute to innovation. More attention is needed for coaboration with actors outside agricuture (e.g. in the food chain). The debate on the importance of the reationship between the AKS components has been a distinctive Itaian approach for the ast twenty years: if in the 90s the subject matter was the agricutura services system, in the ast decade it was the agricutura knowedge network. The most important incentives used are egisative instruments and dedicated projects, but recenty the attention on the inks between the AKIS components has been reduced at a eves, aso in connection with the FAS system and the other extension initiatives promoted by the EU rura deveopment poicy. Then the dereguation, typica of the network, is getting the upper hand over the coordination. In Estonia, the different components of AKIS have been made avaiabe to the producers and other interested parties. The components of AKIS are financed by different deveopment pans, which each have indicators, which need to be fufied. The progress of impementing the deveopment pans are reported to the government and Pariament. Integration of findings shoud therefore happen at this eve. However, the components of AKIS are aso evauated through studies and anayses to pan the further actions taken. The Ministry of Rura Deveopment is the key actor in Hungary, as it connects different subsystems. As saaries are ow, the opportunity to earn extra money is the biggest incentive for AKIS actors. There is thus a strong incentive for, for exampe, university ecturers to engage in consutancy and this tends to encourage some integration in AKIS. There are however aso many overaps and a ack of cooperation between subsystems, whie the inks between educationa and research institutions are inadequate. In France, custers and Agreenium are factors of cohesiveness and innovation. The same goes with mixed technoogica units and networks. Links between academia on one hand (pubic goods) and appied research/extension (private or sectora interests) on the other hand are sti weak due to coective perception and funding structure. In Switzerand, the federa research institute Agroscope is ed by a New Pubic Management Approach. The Swiss government has 4-year contracts with Agroscope expecting impacts of research. This eads to an impact cuture and to a cose coaboration with the nationa extension centre Agridea as we as with farmers. Finay, the focus in the Netherands is on the management of the triange Industry Government Knowedge Institutes in order to maintain synergy. A set of questions thereby

79 77 arises: Is it usefu to ink private and pubic investments (and how)? Can effectiveness of research money be increased through more joint programming or other innovation instruments (e.g. venture capita)? How to adapt the triange to have a better integration of education and appied research in the regions and to improve coaboration with non-agro industries and research institutes? How can the triange contribute to soving the word food issue 2050? Which improvements in governance of the system are possibe? Etc. 5.5 AKIS poicy Genera findings Reated to the issue of incentives is the anaysis of AKIS poicy in the countries. The anayses of the nationa and regiona systems show that AKIS are indeed governed by pubic poicy, but there are no consistent AKIS poicies. Officiay, an AKIS does not yet exist in ega terms, there is no egisation known so far, addressing such a whoe system or such a coective government poicy that addressed the nature, scope and roe of AKS as an overa entity. The subsystems operate within separate, individua (and occasionay) combined poicies for education, research, ST&I, industria poicy, rura deveopment poicy and/or SME poicy. The question can however be asked if an integrated AKIS poicy is reay needed to reach the objectives or is it sufficient just to coherenty combine the avaiabe information. Appropriate incentives wi then be needed. Some countries (ike the Netherands and Switzerand) see research and innovation programmes as a poicy instrument to reach certain pubic goas (e.g. regarding the environment) and combine them with other types of reguation. The interaction with innovation in the private sector (ike the food industry) is often weak, and not very ceary taken into account in designing poicies. An important point of concern is that the AKIS subsystems are governed by different poicies and by mutipe poicy eves (EU, country, region). Athough incentives might be used to stimuate coaboration, this can easiy be disturbed by poicy changes in one of the domains. This aspect has not been discussed in depth unti now Poicy diemmas The work within the CWG was an exceent opportunity to refect upon the certain aspects of AKIS poicy. The foowing paragraphs give an overview on issues such as the reationship between agricutura innovation instruments and genera innovation poicy, the stimuation of dissemination versus knowedge production, the costs and organisationa structure of extension and other issues. Interaction between agricutura and genera innovation poicy A first diemma that occurred during the discussions within the CWG was the interaction between agricutura and other poicies e.g. economy and abour, energy and natura resources. Therefore innovation poicy as we as the poicies on education and extension, often exert infuence in a horizonta fashion. Agricuture is of course part of the goba nationa knowedge system, with pubic and private funding and estabishments, but the sector has aso much specificity, due to its historica and

80 78 E X P E R I E N C E S I N T H E M E M B E R S T A T E S structura organization. From the evidence that was gathered in the nationa and regiona cases, it can be concuded that agricutura issues are often the subject of a separate poicy (and are thus not incuded in the genera poicy). The Common Agricutura Poicy (mainy Rura Deveopment Poicy) is an important expaining factor for this observation. In many cases, this spit between agricutura and genera poicy issues is rather impicit. Ony exceptionay (a recent poicy study in Fanders is an exampe) are such discussions on coherence of poicy tabed. The impacts of such coherency may aso vary between actors. Where there is certainy a case for better integration with regard to non-agricutura businesses and farmers who diversify their activities toward food processing, tourism and renting out buidings, this may not necessariy be the case for traditiona farming activities. The discussions on the interactions between poicy fieds can take different forms but occur in mutipe countries. In the Netherands, the education and extension for mutifunctiona agricuture were discussed as the evidence showed a mismatch between the cear demands for improved competences, know-how and an improved organisation on the one hand and an unstructured and fragmented suppy of education in the traditiona green schoos. An improved coaboration with traditiona education and extension coud overcome the diemma and bring the mutifunctiona farmers coser to other SMEs in the rura area. However, instruments shoud be avaiabe to steer in a powerfu way. A simiar discussion can be identified on rura businesses and organic agricuture. Shoud organic farmers (as an exampe) be integrated in the traditiona systems for education and extension or shoud separate channes exist? Arguments go in both directions. Integration coud ead to a professionaization of organic agricuture, but a stronger focus on production and a confict with the organic vaues are aso possibe. In Fanders, there was recenty a discussion on the funding of agricutura research and the incusion into the more genera instruments for coective research. Integration of instruments coud offer the agricutura knowedge institutions a arger budget, opportunities for cross-sectora research, an improved invovement of the sector and a better vaorisation of research resuts. Potentia dangers were a higher percentage of co-funding, the absence of a budget warranty and ess steering by the research institutes. A cear preference was expressed for a separate instrument of agricuture because of the identity of the sector, the inabiity of the sector to be more invoved in research and the guaranteed budget. Baance between dissemination of resuts and knowedge production The baance between the dissemination of resuts to the users on the one hand and knowedge production on the other is a second poicy diemma for severa countries. The objective is to stimuate researchers to pay more attention to dissemination activities. Aternative ways for knowedge dissemination for exampe concern pubications in magazines, information days in the fied, ectures and seminars, training of advisors, consutations via emai and teephone and webpages. The current imbaance is mainy reated to the fact that researchers are stimuated to produce scientific output and not for their efforts to disseminate and impement their resuts in the sector and the companies. The countries try to reaize this shift in severa ways, whie the European Commission wi impement the European Innovation Partnership Productive and sustainabe agricuture with a simiar objective.

81 79 Box 5.20 European Innovation Partnership Productive and sustainabe agricuture The concept of Innovation Partnershipsa refers to a too that poos forces and interinks a wide range of innovation-reated actions. The EIP Agricutura Productivity and Sustainabiity aims at fostering a competitive and sustainabe agricuture that achieves more from ess input and works in harmony with the environment. The agricutura EIP aims at bridging the gap between research and farming practice, notaby by faciitating communication and cooperation among stakehoders. EIPs are no poicy instruments of their own: they aim to achieve synergies and EU vaue added through informing about opportunities, encouraging uptake, ensuring exchange on good practice and promising research resuts, and providing a systematic feedback on practice needs to the scientific community. Concrete actions of the EIP wi be impemented primariy through the estabishment of operationa groups as key acting entities, invoving actors such as farmers, scientists, advisors, enterprises, etc. These operationa groups wi share knowedge and constitute themseves around topics of their interest and carry out projects aimed at testing and appying innovative practices, processes, products, services and technoogies. For funding concrete innovative action, the agricutura EIP wi be impemented through actions of mainy two Union poicies: Rura deveopment poicy provides co-funding for innovative actions of «operationa groups» invoving farmers, advisors, researchers, enterprises, and other actors. The key measures incude cooperation, knowedge transfer, information actions, advisory services, investment and business deveopment. EU research and innovation poicy ( Horizon 2020 ) pays its key roe in providing the knowedge base for innovative actions on the ground. Key actions feeding into the EIP incude appied research projects, muti-actor approaches, cross-border and custer initiatives, piot and demonstration projects, as we as supporting innovation brokers and innovation centres. Whist RD programmes act normay within the boundaries of nationa or regiona programme areas, EU Research woud mainy deiver at cross-regiona, cross-border, or EU-eve. Other poicies, namey cohesion and education poicy, might offer additiona opportunities. As a key instrument of the EIP, the network faciity wi work as a mediator enhancing communication between science and practice and fostering cooperation. It wi encourage the estabishment of operationa groups and support their work through seminars, data bases, and hep desk functions. It wi faciitate the effective fow of information beyond the oca and regiona eve.. In order to widen the knowedge base and sharing of experience, operationa groups woud report back to the EIP network about their innovation actions. The EIP network wi ensure the dissemination of resuts and hep sharing experience about faiures, essons earned and good practice. The network faciity wi aso screen reevant research resuts and add to giving orientation to the research agenda through coecting and communicating practice needs. The network wi animate activities at EU, nationa, regiona and oca eve, through informing interested actors, incuding programming authorities, about opportunities for innovative action and funding options. Thus, the network wi hep actors to use effectivey the opportunities provided for by EU poicies. a) Europe 2020 Fagship Initiative Innovation Union: COM(2011) Source: DG AGRI In Turkey, two new instruments were estabished to address chaenges such as farmer participation in technoogy deveopment, the estabishment of a strong network among institutions and putting R&D outcomes into practice. It concerns a R&D support programme to promote private sector invovement in agricutura research and a pubic-private structure that stimuates the private sector to deveop R&D-projects and coaborative projects. In Estonia the points of concern have been the reinforcement of the cooperation between researchers, agricutura advisers and agricutura producers; the precision, reiabiity and avaiabiity of scientific information and its distribution, but aso the possibiities to integrate research, advice and production. Some few years ago, Agroscope, the Swiss federa agricutura research institute, estabished so caed expert groups, to accompany the institute s different departments. These groups are composed of the institute s main cients: representatives of the advisory system, of farmers associations, environment protection groups and consumer organizations. The experts support Agroscope by identifying the needs and requirements Agroscope shoud address through research programmes and projects. At the same time, they are ambassadors of Agroscope s

82 80 E X P E R I E N C E S I N T H E M E M B E R S T A T E S achievements to their respective cients. On a more technica eve, fora are set up between researchers and speciaists of the branches. These speciaists identify research needs, foow the research process and give feedback concerning probem soving. A simiar evoution can aso be found in other countries, whereby the government not ony supports research but aso networking activities, co-operations and bottom-up approaches. Other options are earning together -approaches, the enhancement of R&D and extension capacity of knowedge producers and interactive earning mechanisms. An important remark is that incentives to coaborate do not suffice, but that there is aso need for a tradition and experience in cooperation (aso with non-scientific peope) and for an infrastructure to invite and meet each other. Case studies are seen as a vauabe approach to make success stories more visibe. Extension: Free or paid? Private or pubic? Extension is a third fied of poicy diemmas identified within the CWG. In this particuar case, the diemma is doube. The cost and budget issue is a first eement (Shoud farmers pay for extension services or shoud these be free?), whie the second eement concerns the baance between private and pubic (What can be reaized by markets and private extension and what is the roe of the state?). The question of the paid services or not has mutipe aspects. It is not ony the issue of cost and budget-recovery, but aso concerns the quaity of the advice, the quaity of advisors, individua versus coective extension and the advantages that can be reaized through the advice. Whie some countries have aready seen an evoution towards more paying services (e.g. Denmark, Germany, the Netherands, the UK, Switzerand and France), the discussion is sti open in others, with arguments for and against (tabe 5.1). It seems that paying services are more ikey to be successfu when they create additiona added-vaue for the farmers and that they are unfeasibe for pubic good aspects. Additionay, the move towards a greater private sector roe means that there is increasingy a market vaue paced upon information underpinning advice that was previousy considered freey avaiabe. Tabe 5.1 Arguments pro and contra paying extension services Pro System not market oriented Opportunities for reguations on what services shoud be paid for and to define any rates of co-financing and any exempt groups The pubic funds can be redirected esewhere Procedures for accessing/caiming back funding to cover the cost of advice can be compicated and sow. Farmers vaue more, and so act on, advice they pay for directy Contra Incination of farmers to acquire information and to seek advice is aready ow Lack of funds (and time) as a reason for not accessing paid services Farmers prefer to seek free advice Paid services are ess abe to access the majority of farmers Farmers ony pay for advice if (a) there is no free aternative or (b) if it is a prerequisite to receiving pubic funding support for their business or if the benefits of the advice are higher than its costs.

83 81 The discussion on the responsibiity for extension (private actors versus the government) is cosey reated to the previous issue. Historicay, governments had an important roe in the extension services, but over time private actors become active in the advice and knowedge sector. This acceptance of paying services is not ony inked to the added vaue reaized through the advice, but is aso inked to the increased compexity of agricutura practices, incuding ega, environmenta and other requirements. One person is no onger capabe of covering the entire spectrum of topics and service providers speciaize on certain topics. In this evoution, farmers get a more state-of-the-art advice on recent technoogies, but smaer and oder farmers risk getting detached from the system. Where the state services are not detached into the private service providers, they need to confront the chaenge to reaign them. Where the state is interested in providing quaity advisory services and is ready to support advice given in significant fieds. The Farm Advisory System is one of the ways to do so. Organisation of extension Next to the characteristics of extension, questions can aso be raised about its organization. It for exampe concerns the need to define FAS, the necessity to eiminate parae services and the invovement of farmers and other stakehoders in the shaping of advisory services. A ega definition of FAS woud ead to benefits ike registered consutants (and excusion of non-speciaist advisors), simpicity towards the farmers on what advice is, officia supervision and quaity management, guaranteed focus on important themes and potentiay a simpe and efficient service. At the same time, disadvantages of such a egay defined service can be found. The system coud be compex, restrictive and insufficienty responsive to the rea needs of users, the suppy of business-specific advice coud be inadequate, the broader aspects of AKIS (such as universities, training and research institutes) and we-known and trusted service providers woud be excuded from such a definition. A simiar approach can be used to anayse the benefits and disadvantages of parae services. Arguments in favour of an eimination of parae services are the costs. In addition a core of fu-time, speciaist advisors coud be estabished. There is at present a ack of cooperation between the various networks that provide parae services to farmers. One extension centre with a cear offer is easier for farmers. Disadvantages are the absence of choice options on source and form of the advice, a possibe ower demand responsiveness and quaity in the case of a monopoy. A fina eement for discussion is the question whether farmers (and other stakehoders) shoud be invoved in the panning and the shaping of advisory services. Positive effects woud be that the farmers woud have a better understanding of the avaiabe range of services, the services woud better address the need, it woud invove an evauation by the users, non-core actors woud have a bigger opportunity to integrate themseves into the service and it coud buid the farmers trust in the system. Positive eements of such an invovement are a cearer understanding of the farmers needs by experts. Adverse eements might be a bigger impact of the stakehoders with a greater poitica infuence and the potentia deviation from the poicy priorities. Usuay however, the atter reates to goas the advisory service has.

84 82 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Box 5.21 Two eve advisory system (Switzerand) Athough a sma country, the advisory system in Switzerand is organized on two different eves. Information and advice to farmers is offered by extension services at the cantona eve. They cover activities in farmers own private interests (in the sense of advisory services: information, technica advice in crop and anima production, socio-economic expertise in farm management) as we as providing services in pubic interests (in the sense of extension services ike soi and water conservation or andscape protection). Hence, farmers party finance these services. At the nationa eve, the Agridea extension centre, an association of the cantons and severa farmers organizations, but mainy funded by the federa administration, is carrying out second-ine support: training cantona extension service staff, providing practica information in manuas and guideines, supporting regiona and nationa networks. Agridea therefore is a ink between scientific research and farmers own experience as we as between nationa and cantona institutions. Source: Agricutura Report, Swiss Federa Office for Agricuture 5.6 Monitoring of AKIS From the beginning, the CWG had the objective to provide a starting point for the estabishment of European monitoring device of the AKIS structures and their evauation. This was seen as a cruciay necessary too for designing and evauating AKIS poicy formation and impementation, in the perspectives of the chaenges ahead: to feed the word in the ong term, in a sustainabe way (AKIS kick-off report). Monitoring systems and indicators in the member states Monitoring of the entire AKIS in the member states is virtuay absent, either in terms of input, system, or output. Countries in genera monitor the AKIS components, but without regarding the inkages with other components and interaction with the budget. Even within subsystems, monitoring can differ according to instrument (e.g. dedicated funding versus structured funds in Itay: in the first case the monitoring and evauating indicators are provided by their programs; in the second, the more consoidated assessment systems for education co-exist with ony some experiences not consoidated - of a systematic R&D evauation). Common indicators to monitor the research subsystem concern the scientific output (mainy PhDs and pubications), inteectua property rights and budget spending. In some cases, indicators exist to measure and monitor the use of the knowedge generated (Netherands). It is remarkabe that there exists itte in the way of impact indicators to measure research performance. One exception is the measurement of saes from new/improved products and processes in Turkey. The extension system consists of an important part of rura deveopment measures (such as the Farm Advisory Services), which are monitored and evauated within that framework. Indicators used are for exampe the number of participants, the number of formation days and the themes addressed. The UK aso has an exampe (at the research piot stage) of a more integrated system, whereby the effectiveness is measured of the deivery of integrated advice, whie reducing the burden on farmers. In the case of private extension services, the main governmenta monitoring is the recognition or certification of the service providers. There is itte or no further monitoring of the frequency and quaity of the advices provided. The number of students, the number of courses foowed and the number of dipomas are the eements measured in education.

85 83 Finay, very itte monitoring at farm eve was mentioned. The European Farm Accountancy Data Network (FADN) can be a way to anchor such an innovation monitoring, as in the Netherands. In the UK, nationa Farm Business and Practice Survey data are for exampe being used, in conjunction with socio-economic research, to understand processes of decision making by representative types (segments) of agri-business. The overview iustrates that the identified indicators strugge with important shortcomings, as they are often ony rudimentary, biased or overapping. The indicators to measure research are more deveoped in comparison with innovation. There seems thus to exist a major inconsistency between the high eve of attention to innovation in the poicy domain and the ack of data and research for evidence-based poicy. Many countries however mention evoutions and progress on this topic. Box 5.22 Information system on the regiona agricutura research (Itay) This network system consists of an on-ine database aiming at coecting and spreading information on regiona research activities in the agri-food and agri-environmenta sectors. It has been created and is managed by the Nationa Institute for Agricutura Economics (INEA) on behaf of the Regiona Representative Network of Agricutura Research, an interregiona coordinating organization recognized by the Conference of Presidents of the Itaian Regions and the Autonomous Provinces. The initiative started thanks to the Itaian Regions interest to coordinate their efforts in achieving a wide dissemination of knowedge and experience in the agricutura fieds. The overa aim of the project is to provide the regiona poicy makers with a mutimedia information system on the main aspects of the agricutura research financed and promoted by the Regions (institutions invoved, projects, objectives, main contents, financia resources), in order to start up a coordinating process aimed at the appropriate aocation of the avaiabe financia resources. Over time, other operationa objectives have been added, such as: to promote an active participation of research institutes; to find a more efficient meeting point between agricutura research suppy and demand. At present, the on ine-database contains the synthetic information on more than 1600 regiona researches and produces statistics and anaysis usefu - to poicy makers, researchers, etc. - for verifying the evoution of regiona agricutura research in terms of funds, objectives and contents. The database requires ony detecting the main phases of research, a easiy cassifiabe (dropdown menu) according to shared cassification. This experience can aso be extended to other reaities and even in the EU. Source: Materia, Di Paoo, Budapest presentation (2011); OECD response, Itay ; Reporting to pariament Simiar to the monitoring, there is no fu reporting of the AKIS-functioning to the nationa pariaments, next to budgets. In severa member states, the pariament is not informed with regard to innovation and education, in contrast to other poicy areas. From time to time, poicy review or evauations (e.g. on the progress of rura deveopment pans) may be provided to the pariament. Individua institutions (ike universities) are sometimes required by aw to report yeary to the pariament (for exampe in Fanders). Athough reporting is rather fragmented, pariaments can aso initiate specific actions with regard to innovation. This was for exampe the case in UK with the House of Lords Inquiry on Innovation in EU agricuture (2011). This inquiry expores how innovation in European agricuture can be encouraged in the context of new chaenges such as cimate change, water scarcity and the need to encourage sustainabe improvements in output.

86 84 E X P E R I E N C E S I N T H E M E M B E R S T A T E S Considerations on an EU monitoring Based on the country situations and the discussions in the working group, it appears that there is an added vaue for a European approach on AKIS. The fu scope of eements and arguments is at this moment however insufficienty cear. There is certainy a good basis to start a patform for interaction. In this way, a patform for exchange between member states can be created with earning (and thus not monitoring) as a main objective. Such a forum coud aso hep the European Commission and the member states to test ideas and to make the ink to the upcoming European Innovation Partnership Productive and sustainabe agricuture. The diversity at EU eve (in comparison with member states) is a botteneck in monitoring exercises. The anaysis shows that there is no such thing as a European-wide AKIS and that this is not the objective. Innovation and knowedge transfer mainy occur within regiona and/or nationa systems. member states do not see an added vaue in an obigatory reporting system, but want to deveop a common understanding of the probem setting, want to earn together and want to stimuate interaction with research projects. A monitoring system shoud therefore have cear objectives. Monitoring coud for exampe hep member states to benchmark their incentive system, efforts and resuts, but coud aso faciitate earning with regard to poicy deveopment at EU eve or reaize other objectives. Because of the fragmented monitoring in member states, it is appropriate to first reaize a further integration at this eve. It shoud be verified how the existing indicators and monitoring systems of the AKIS components can be further deveoped and how these evauation systems can be inked, in a simpe way, between subsystems. 5.7 Concusions The country experiences indicate that the theoretica concept of AKIS can be used to describe nationa or regiona AKIS: they exist. The concept aows us to anayse the compex reationships between AKS subsystems, their gradua transformations, invovement of new actors and progression of new initiatives. There is however no One size fits a formua for what the idea AKIS is. There are both simiarities and differences between countries AKIS, party as a resut of historica deveopments. Some countries have aso restructured their AKIS consideraby to tacke new chaenges or reaities. It is cear that more scientific work is possibe to support fact finding and discussions on AKIS and AKIS-poicy. For instance coud typoogies of systems (in reation to strategies of regiona food chains and poicies) hep to get some grip on the differences between 27 EU member states or 37 countries in the European Research Area. When it comes to AKIS poicy, it is cear that AKIS components are governed by quite different poices and that the actors react to other types of incentives. Consistent AKIS poicies do not exist and the AKIS components are aso governed by quite different incentives. Athough the interaction, communication and coaboration between components are crucia, they react to different incentives. Research is often evauated in terms of pubications, citations, and exceence, whie education is funded based upon student numbers. In extension, there is a wide variety of incentive mechanisms: payments by farmers, vouchers, subsidized programmes or input finance, to name a few. To improve interaction between subsystems, severa countries have deveoped specific incentives, but these are at this moment sti rather imited.

87 Monitoring of AKIS in terms of input -,, output- and impact indicators is imited. Indicators, monitoring and evauations schemes exist for parts of the subsystem, but the overa AKIS monitoring is fragmented. An overarching EU monitoring device is therefore not an option at this moment. Countries shoud first integrate and coordinate their existing systems to reaize an improved AKIS monitoring at the member state eve. A earning patform where countries coud exchange experiences and good practices can be shared wi have a cearer added vaue at European eve. 85

88

89 87 6 FORESIGHT Text by Krijn J. Poppe based on discussions in the Coaborative Working Group 6.1 Introduction Besides theoretica considerations (chapters 2, 3 and 4) and empirica observations on AKIS in the EU member states and affiiated countries (Chapter 5) it makes sense to ook to the future, with the aim of understanding where AKIS are heading and if they are fit for the future. In the next section some attention is paid to the current situation in the economy at arge and the food markets. Section 6.3 is ooking further into the future, based on the 3 rd Foresight report of the SCAR Coaborative Working Group. In section 6.4 we report the discussions within this Coaborative Working Group on foresight aspects of AKIS. 6.2 The current economic situation Over the ast two years, the period in which this Coaborative Working Group was active, the economic outook has deteriorated strongy. The booming economy of the ast decade has turned in to a severe stagnation. The financia and sovereign debt crisis has ed to characterisations by eading European poiticians as the biggest crisis in the ife of the Euro and even in the existence of the EU or since the depression. That these caims are not too much exaggerated can be shown by figure 6.1 that is based on historic-economic anaysis in ong term business cyces by Carota Perez (2002). This theory states that economic deveopment since the first industria revoution is driven by technoogicaeconomic cyces (waves) that take about years to compete. These waves start with a new technoogy that is not necessariy a new invention (the car existed for 25 years as a toy for the rich before Henry Ford made it cheap to produce) but starts to become cheaper and cheaper (the microchip that Gordon Moore invented in 1971 sti doubes in capacity / haves in price every 18 months) at such a starting speed that it has big effects on how we can organise society. This breakthrough typicay happens in a period of standsti and capita searching for new options. After this irruption phase in which technoogy is eading, investors and society becomes too enthusiastic. There is overinvestment ( new economy, od paradigms for prudent investment are decared non reevant as this time is different) resuting in a financia bubbe. That eads to a crash. According to this theory we are now in the 5 th wave (or industria revoution) with ICT as key technoogy and the current financia crisis (that started with the Nasdaq crisis in 2000 but ony reay spied over to the rea economy with the defaut of Lehmann Brothers in 2008) can be interpreted as the mid-ife crisis of this ICT wave. Historicay such a period is a turning point that cas for (acceptance of) institutiona innovation. New ways of working are accepted. Faiures of the previous period are corrected and rues are put in pace to make new technoogies work in situations (oder industries) that unti now had not innovated with the new technoogy. Such a change can ead to an era of coherent growth, as for exampe happened in the 1950s. After that phase the technoogy has more and more waked its

90 88 F O R E S I G H T course and not many profitabe opportunities are eft. Negative externaities (ike the poution we are confronted with from the previous wave) start to dominate and a certain eve of disappointment with the technoogy can be sensed. This narrative makes cear why the current economic situation is more than a norma hiccup in the economic machine, but a major crisis. It aso makes cear why there are cas for institutiona innovation, to renew our economic system and reduce the externaities of the previous wave. The OECD abes this green growth. The EU has chosen the mantra smart, sustainabe and incusive growth that echoes a profit-panet-peope approach. Concerning agricuture and food it aso makes cear that ICT coud be a major driver in the few years. If drones are fying over Afghanistan, steered from faraway airbases, and metro ine 1 in Paris does not need drivers anymore, one wonders how ong it wi take before we have unmanned tractors. Actuay the Austrian company Fendt won a god meda with a prototype on the 2011 Agritechnica in Hannover (that is controed by the chauffeured tractor nearby which behaviour it mimics) and at a discussion on innovation under the Poish presidency a eading deveoper of the John Deere company expained that tractors aready can do without a driver very we, but that iabiity considerations and the machines behind the tractor makes one necessary for the moment. This exampe is not given to predict but to show that in our economic system big transitions are going on, not unike those in the 1930s and 1950s, that wi have consequences for farming systems. Figure 6.1 Long wave theory Degree of diffusion of the technoogica revoution Instaation period Financia bubbe Decouping in the system Poarisation poor and rich 1771 water, textie 1829 steam, raiways 1875 stee 1908 car, oi, massproduction 1971 ICT chip IRRUPTION FRENZY Crash The opportunity for green growth Turning point Institutiona innovation SYNERGY Unempoyment Decine of od industries Capita searches new techniques Depoyment period Goden age Coherent growth Increasing externaities MATURITY Last products & industries Market saturation Disappointment vs companency Next wave Time Source: Perez, 2002; see aso Perez, 2010; Poppe, 2009 In addition to the transitions in the economic structure that coud affect the economic situation in the coming years as we as the functioning of the EU, there is the recent turbuence in food

91 89 markets. Aso here we take the ong view. Figure 6.2 shows the deveopment of cerea prices over the ast 200 years, incuding the recent 2007/8 and 2010 price hikes and the OECD/FAO projections up to The figure iustrates that wheat prices (that are seen as quite representative for food prices in genera) have come down over the ast centuries, thanks to massive investment in and, infrastructure, internationa markets and science (fertiizers, chemicas, genetics, green revoution). From time to time crises in prices were needed as a wakeup ca to trigger new investments. And athough the current price hikes seem to be modest in historic perspective, and voatiity at goba eve shoud not be overstressed, there is a need to invest in agricuture and food to meet the chaenges for the coming decades. There is a genera consensus that food prices wi rise, and that the current period is a cear break with the past. Figure 6.2 Long term trends in wheat prices Source: N. Koning, Wageningen UR; OECD/FAO projections Before we turn to that issue and its importance for AKIS into more detai in the next section, there is one other issue in the current economic situation that needs attention: the poarisation of agricuture. Statisticians are strugging with the definition of a farm, but on the broadest measure there are 13.7 miion hodings in the EU-27. Neary haf of them (47%) are too sma to be of any significance for food production other than sef-subsistence. These farms 7 have 1.6% of production, but 23% of the agricutura work force is associated with these hodings. The rea numbers are probaby even higher as in some member states such farms are not counted as farms. Some of these farms are residentia ife-stye farms that have (arge) incomes from non-farming activities or pensions, most of them are very poor peasant hodings in eastern Europe. Of the remaining group of 7.31 miion hodings, a arge part is aso very sma and contributing ony marginay to food production. As (abour saving) technoogy deveops much faster than farms restructure (farms that are too sma to be viabe mainy disappear at the moment the farmers retire and chidren have voted with their feet) this situation is inherent to the sector. 7. Technicay: hodings smaer than 1 European Size Unit, Eurostat 2007 data

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