Multi-stakeholder Partnership Approach for Stimulating Agricultural Innovation

Background

2017 Global Report on Food Crises announced 108 million people are in the situation of crisis level of food scarcity in 2016 (FAO, 2017). The number of people in food insecurity and scarcity situation increased 35% compared to 2015 (FAO, 2017). According to the report, climate change and natural disaster are inevitable causes of food scarcity. Scarcity in food supply determines food prices rise. International Food Policy Research Institute (IFPRI) described a foresight of food price between 2005 to 2050, particularly maize, rice, and wheat will rise by 104, 79 and 88 percent (Rosegrant, M. W., et.al, 2014). The trend of increasing food price and scarcity also happens in Indonesia especially for rice, eggs, and chicken which determined the inflation in 2015 (Ministry of Trade, 2015). The report identified climate change as the determinant of food production in Indonesia.

The problem of global food scarcity has led the Global Innovation Index (GII) 2017 to focus on innovation as a way to deal with limited natural resource and rising food demand. The report measures seven indicators of innovation in strengthening food policy. GII ranked Indonesia in 30th position and noted human capital and research as the weakest performance of innovation atmosphere in Indonesia (Dutta, et.al, 2017). Human capital and research have also appeared as weakest performance in Indonesia previously as 2014 GII reported. A study proposed that research is crucial in creating new knowledge to solve the food scarcity problem (Rosegrant, M. W., et.al, 2014). Creating new knowledge to produce innovation can be cultivated not only from universities and public research institutes (PRI), but also, farmers, citizens, and industries.

The crucial factor of innovation system theory proposes that “innovations are often complex systems whereby networks of research, entrepreneurial, and other actors interact to produce and use new knowledge,” (Sanginga, et.al, 2007). The gap that faced by Indonesian government is lacking policy in stimulating innovation from those various actors. The third Rencana Pembangunan Jangka Menengah Nasional/ National Medium-Term Development Plan (RPJMN2015-2019), Indonesia set sustainable innovation as one of the RPJMN mission. The mission is followed by enforcing innovation in many sectors including drugs and food, innovation in small medium enterprises and the local economy, science park creation, partnership between universities and private sectors (Presidential Decree No. 2/ 2015).

However, the plan identifies the challenge that so far, there is a disconnection in what public universities produce and what the private sector and society need. So far, the partnership among universities, PRIs, industries, and farmers are conducted without the government’s role and policy, therefore, some of the partnerships are not sustained (Gunawan, et, al, 2016). The performance indicator such as partnership program and the benefit of the partnership program to farmers and citizens also have not been set to an agricultural policy direction as well in Indonesia. Therefore, Multi-stakeholder (MSP) approach comes as a concept and aims to determine decisions and collective actions that have an innovative impact on local, national or global levels (Brouwer, et.al, 2015).

Purpose of Paper

This paper describes MSP mechanism among government, university, private sector and citizens in increasing agricultural innovation impact and answering the gap faced by the RPJMN 2015-2019.

Conceptual Definition of MSP

The form of MSP in agricultural innovation comes in many platforms such as triple helix (government, university, and private sector), and quadruple helix (universities and research institutes, industries firms and private sector, citizens and government) (Gouvea, et.al, 2013). In broader context, MSP is a process of engaging interest groups such as government, farmers, universities, public research institutes, consumers and private sectors to generate innovation ideas, fill the demand of agricultural production, and cultivate sustainable agriculture development.

Role of Stakeholders in MSP

As innovation initiation could come from various actors, all actors have the role in creating new knowledge. Other roles will be described as follows: ? The government has significant roles in regulating knowledge creation priorities, giving incentives and investment for public research institutes, farmers capacity building, conducting sharing forum to consolidate all the interests (Adekunle, et, al, 2012; Gouvea, et.al, 2013), and facilitating decision making among stakeholders. ? Industries also play important role in supplying and providing goods (Gouvea, et.al, 2013). ? Consumers play role in shaping product standards and quantity. Their preferences will affect the design, quality and offering in the market (Gouvea, et.al, 2013).

Consumer preference can also be identified as a new market. In this context, the consumers can be represented by national and international agriculture organizations that in charge of product certifications, Ombudsman Bureau and Bureau of Consumer Protection. ? Universities and PRI also have the role in conducting capacity building to farmers and citizens and also creating new knowledge to fill the consumers demand and industry needs (Gouvea, et.al, 2013). ? Farmers have the urgent role in practicing sustainable farming and providing good quality commodities to the industries. Therefore, it is also important to develop human capital and market for farmers by the employing Multi-stakeholder partnership.

Scope and Policy Choices in Applying MSP The MSP policy can be initiated in local government level, particularly led by Department of Agriculture, Department of Trade and Industry, Bureau of Planning and Development and Department of Finance, by applying these policy choices: ? Creating MSP Forum. To consolidate the needs of all the stakeholders, the government can initiate a physical and virtual forum to generate needs of each stakeholder and problems faced. The forum is a part of policy-making that meets market demand, stakeholder interests and increase farmers, industries and universities productivity (Adekunle, et, al, 2012). ? Capacity Building. Capacity building to farmers in doing more effective farming can be initiated by a subprogram with the source of knowledge from universities, government facilitators, and PRIs. Capacity building can also be fostered for all stakeholders.

Human capital is suggested to be important for technological learning and innovation (Galli?, et.al, 2012). ? Giving incentives to all stakeholders. Choices of incentives are tax incentives and export allowances for private sectors, more funding to PRIs and universities that is suggested to be good to stimulate new knowledge (Clancy, et, al, 2013), and subsidies on irrigation and fertilizers for farmers. ? Applying reflective monitoring based on targeted indicators in agricultural development planning. Along with stakeholders involved, the government can employ some indicators such as the number of innovation produced by research institutions, number of licenses partnership among research institution, universities and industries, farmers income and consumer satisfaction. Clear targets that are agreed by all stakeholders is the key to MSP sustainability (Ansell, 2008).

Challenges and Key Success Factors (KSF) of Agricultural MSP Government might face some challenge in MSP implementation such as; dealing with personality clashes and organization culture differences; high transaction costs because it requires more time, meetings, and struggles to work efficiently; poor production condition for small-scale farmers to meet the standard of industries; and for industries, MSP requires huge transaction and opportunity costs for meeting and workshops (Sanginga, et.al, 2007). Shared vision, strong support from leadership, human and social capital benefits, institutional benefits and resource sharing are noted as KSF in MSP practices (Sanginga, et.al, 2007; Brouwer, et.al, 2015).