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Agricultural Innovation System:
Observations From Azerbaijan
Tugrul Temel
March 23, 2001
1
Outline
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Background
Objectives
Motivation
Definition
Data collection
Methodology
Discussion
Suggestions
Conclusions
2
Background
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Agricultural GDP/total GDP [down]
Oil exports [up], cash crops [up]
Food imports [up]
66 % of agr. land in S/M control
Agr. investment [down to zero]
Excessive land fragmentation
Inoperative irrig. sys - land salinity
Privatization of state enterprises
Spin offs in agro-processing sector
Regional cooperation
Attract FDI
3
Objectives
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describe and analyze the existing
Agricultural Innovation System (AIS)
set the key priorities for the AIS
suggest changes in the AIS
4
Motivation
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Knowledge central to economic
development (new growth,
evolutionary, institutional)
Learning as important as direct
investment in R&D
Innovation everywhere in society
With the systems approach
Identify leverage points
Detecting mismatches
Developing alternative mech.
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Definition
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An AIS is a set of agents that jointly
and/or individually contribute to the
development, diffusion, and use of new
or improved technologies.
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Data collection
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A Questionnaire: organizational profile,
innovation activities, innovation
linkages, constraints
66 people interviewed
Agents
P
R
E
C
I
IPM
F
CO
EA
# of interviewees
7
11
5
1
3
11
12
12
5
7
Methodology
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Concept 1. A matrix of relations
P
 RP

 IP

 FP
 EP
PR
PI
PF
R
RI
RF
IR
FR
I
FI
IF
F
ER
EI
EF
PE 
RE 
IE 

FE 
E 
8
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Concept 2. A matrix of coded relations
P
0

1

0

0
1
1
0
R
1
1
0
1
I
0
1
F
0
0
1
1
0

1

0
E

9
I
P
R
E
F
10
Concept 3. A cause-effect structure
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Effect
4
3
F
2
E
R
I
1
P
0
0
1
2
3
4
Cause
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Discussion
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 P

 fw
 fw

 fw
 fm1
 1
 fm
 0

 im
 1
 fm
A matrix of relations
fw fw
R
fw
fw E
0
0
fm1 0
im
0
im iw
im mm1
fw
0
fw
0
0
C
0
0
0
0
0
mw 0
0
0
mw mm im mm
0
0
iw im
0
0
0
0
I
0
fm1 fm1
0 IPM mm1 0
0 mw1 F
0
fm1 0 mm1 CO
fs1
0
fm1 fm1
fm1 
1 
fw 
fw1 

fw 
fw1 

1
fw 
0 

1
fm 

EA 
12
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













P
0
0
0
1
1
0
0
1
A matrix of coded relations
0
R
0
0
1
0
0
0
0
0
0
E
0
0
0
0
1
0
0
0
0
C
0
0
0
0
0
0
0
0
0
I
0
0
1
1
0
0
0
0
0
IPM
1
0
0
0
0
0
0
1
1
F
1
1
0
0
0
0
1
0
0
CO
1
1 
1 
1 

0 
1 

1 
0 

1 
EA 
13
A cause-effect structure
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7
6
EA
Effect
5
4
F
3
P
2
CO
1
R
E
I
IPM
C
0
0
1
2
3
Cause
4
5
6
14
Suggestions: general
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Set national agricultural and science
and technology policies
Identify research priorities and science
and technology strategies
Establish
financing
mechanisms
coupled with general guidelines of the
policies
Establish an enabling environment to
usher innovation activities
Consider the teachings of economic
thinking
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Suggestions: specific
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Two failures: lack of goal and lack of
active intermediary institutions
Integrate research to the AIS:
IREAI and IREACOI
Link research to the rest of the AIS by
CGS
Collaborative research b/w private and
public sectors
Attract FDI to link strongly I, IPM, F,
CO, EA
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Conclusions
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Private sector is an embryonic stage
Private and public components of the
AIS are disconnected
Environment needed for the growth of
interface institutions
Interactions within the public sector is
very weak
Interactions within the private sector is
somewhat better
17