Functional bioscience innovation systems as the pathway to a sustainable bio-economy: Experience from Uganda.

Functional bioscience innovation systems as the pathway to a sustainable bio-economy: experience from Uganda

Julius Ecuru

At SIANI/SEI, Stockholm

27 September 2013

Highlights

• Opportunities for promoting bioscience innovations for sustainable dev’t are emerging in Uganda and the region;

• Action is needed to address policy and technical challenges;

• Taking an innovations systems approach and building functional innovation systems can be one way to overcome the challenges.

Uganda’s dev’t goal• Ugandan’s aspire to attain

middle income country status as soon as possible.

(Vision 2040)

• This requires GDP growth of > 7% p.a. – A growing population

projected to reach 90 million people in 2050!

– A growing middle class & rapidly urbanizing communities

• Private sector is to be the engine for growth;• Science, tech & innovation the driving force.

Main efforts to promote private sector dev’t

• Macro-economic stabilization• Led to rapid GDP growth in the 90s & early 2000s, peaking

12% in late 90s; but has stagnated at about 5% p.a. in last decade.

• Reducing cost of doing business• Regulatory reforms;• Infrastructure dev’t, e.g. roads, electricity, water,

communication.

– However, while the interventions have led to gains in short term, increased growth & improvements in living standards in the long term requires innovation.

Uganda’s competitive advantage

• Arguably the country’s greatest asset:– Biodiversity (including

agro-biodiversity)– Human resources

• Thus, investing in science, tech & innovation is absolutely essential for Uganda’s future growth;

• The key issue is how to invest in, use and direct science, tech & innovation efforts towards a sustainable future for the country and region. – E.g.

• Adding value to genetic resources;

• Building human capital---skills & innovation capabilities in the biosciences;

• One of the sustainable dev’t pathways could be to build functional bioscience innovation systems.

– Taking “innovation system” both conceptually and also in reality.

• i.e. the networks and interactions among diverse actors in the production, use and diffusion of knowledge.

Lundvall, Edquist, et al.

Some examples

1. Fruit innovation system- a community initiative

• In 2005 a group of about 30 micro and small scale (firm size 1-50 employees), but most cottages, with help of university, established themselves as an innovative business cluster for fruit processing. – Fruit e.g. mango, pineapple, papaya, jack

fruit, oranges, tomato, pumpkin, passion fruit

– Innovations in blending & herbal preservatives

• Their motivation was to add value to local fruits in order to create jobs for the youth & diversify household incomes.

Fruit Processing

Govern-ance

Human capital

Financing

Makerere Univ

UIRI

UEPB

Farmers

SNV

URSB

UNFF

MAAIF

Enterprise Uganda

Processors/ LFPC

Kyambogo Univ

AcronymsURSB-Uganda Registration Services BureauUNFF-Uganda National Farmers’ FederationUNBS-Uganda National Bureau of StandardsNAADS-National Agricultural Advisory ServicesPres’ Office-President’s OfficeMAAIF-Ministry of Agriculture, Animal Industry & FisheriesUEPB-Uganda Exports Promotion BoardNOGAMU-National Organic Manufacturers in UgandaNARL-National Agricultural Research LaboratoriesUMA-Uganda Manufacturers’ AssociationSNV-SNV Netherlands Development OrganizationLFPC-Luwero Fruit Processing ClusterUIRI-Uganda Industrial Research InstitutePSF-Private Sector FoundationMFPED-Ministry of Finance, Planning and Economic DevelopmentLDFA-Luwero District Farmers’ AssociationUDC-Uganda Development CooperationMTIC-Ministry of Trade, Industry and Cooperatives

Irish Aid

Local Gov’t

NARLNOGAMU

NAADSUNBS

Larger Scale Fruit Processors

PSF

UMA

Pres’ Office

Raw Material Suppliers

MFPED

LDFA

UDC

MTIC

dr

dr

dr

dr

dr dr

drdr

sr

sr

sr

sr

sr sr

sr

sr

Ecuru et al 2012

Key issues & challenges• Learning by interacting & collaboration with university scientists is

central.

• Packaging extremely expensive > 50% of cost of production

• New entrants (firms) increasing, but few survive;

• Broad policy recognition of fruit processing in agric dev’t plan; but no specific goals & incentives to drive ambition and creation of markets;

• No quality marks, no trade marks;

• No easy access to credit, red tape; high interest rates typically >10% p.a.

2. Innovation system for crop improvement –Tissue Culture

• Local scientists working collaboratively with Swedish universities, develop technologies for producing clean planting material:– Disease elimination/virus

indexing– Protocols for micro-

propagation (tissue culture) of disease free & high yielding crop varieties.

• Agree to work with an entrepreneur who sets up a commercial tissue culture lab for bananas;

• Afterwards, also venture on their own to establish commercial TC labs.

• Currently 4 small companies, with combined capacity for slightly over a million tissue culture banana plantlets p.a.

• Estimated to meet less than 5% of current demand for banana plantlets;

• 1 plantlet for 1 USD;

Tissue Culture

Govern-ance

Human capital

Financing

Makerere UnivUIRI

Farmers

ASARECA

URSB

UNFF

MAAIF

Enterprise Uganda

Nursery Operators

Kyambogo Univ

AcronymsURSB-Uganda Registration Services BureauUNFF-Uganda National Farmers’ FederationUNBS-Uganda National Bureau of StandardsNAADS-National Agricultural Advisory ServicesUNCST-Uganda National Council for Science and TechnologyUCDA-Uganda Coffee Development AuthorityMAAIF-Ministry of Agriculture, Animal Industry & FisheriesNARL-National Agricultural Research LaboratoriesTCBN-Tissue Culture Business NetworkASARECA-Association for Strengthening Agricultural Research in East and Central AfricaUDB-Uganda Development BankUIRI-Uganda Industrial Research InstitutePSF-Private Sector FoundationMFPED-Ministry of Finance, Planning and Economic DevelopmentURA-Uganda Revenue AuthorityUIA-Uganda Investment AuthorityMTIC-Ministry of Trade, Industry and CooperativesUBBC-Uganda Biotechnology and Biosafety ConsortiumMoES-Ministry of Education and SportsKAZARDI-Kachwekano Zonal Agricultural Research and Development InstituteSciFode-Science Foundation for Livelihoods and DevelopmentUSAID-United States Agency for International Development

USAID

NARL

SciFode

NAADSUNBS

Tissue Culture Firms

PSFUNCST

Inputs Suppliers

MFPED

TCBN

UDB

MTIC

NACCRIKAZARDI

Busitema Univ

UIA

URAUCDA

Lab Equipment Suppliers

MoES

UBBC

Ecuru et al 2012

Key issues & challenges

• Studies to ascertain performance of in vitro plantlets in field conditions; new protocols for multiplication; understanding seed distributions systems;

• New entrants, mostly university & PRO scientists;

• Policy encourages production of clean seed to farmers; but specific goals, targets and incentives needed to attract investment in the area.

• Systematic market analysis required;

Building functional bioscience innovation systems can be one of the ways to a sustainable bio-economy in Uganda and the region.

What can be done?

1. Set up/develop business incubators

– Private sector in Uganda is small and weak, particularly in the biosciences. Therefore, universities & public research orgs should play an enhanced role in “growing” the private sector. Business incubation is one way to do so.

2. Have in place more enabling policies & strategies

– Policies & strategies with clear goals and which provide incentives to drive investment in both macro and micro systems of innovation---products and services;

– Requires studies, & capacity strengthening for evidence based policy making.

3. Build local capabilities (human & technical skills improvement)

– Utilize the latent potential in the universities---make this the hub for research and innovation to address local challenges of global importance.

Conclusion

• Partners can work together to build functional bioscience innovation systems as a pathway to a bio-economy not only in Uganda but in all of eastern and most parts of Africa.

• The public sector will continue to play a vital role in the process.

Thank you