By Alex Abutu
Strengthening Public Private Partnerships for Product Development and Commercialization in Africa’ has been a topic of discussion for over a decade since the inception of Integrated Agricultural Research for Development (IAR4D), which is an approach and a set of good practices for organising research to address complex problems of agricultural development, food security and poverty in sub-Saharan Africa.
Product development refers to all steps involved in creating a product from conception of ideas through market releases and beyond. The process of product development is better done efficiently through public private partnership (PPP), which is a collaboration between private and public sector by apportioning roles in the areas of expertise of the partners. These partnerships work well when private sector technology and innovation combine with public sector incentives to complete work on time and within budget.
Product development through PPP is not complete without commercialization that begins with conception of an idea all the way to production and sale of product to end users (Perkmann et. al., 2013).
Commercialization encompasses the creation of intellectual property right to safeguard the innovation and to allow commercial exploitation of the innovations to benefit the inventor and the society (Bechdol, 2012). Through commercialization, employment is created, and efficiency is gained by farmers as a result of proper utilization of the product (Gurel, 1998).
Public Private Partnership:
This is a partnership between the public sector and the private sector for the purpose of delivering projects, public good or services traditionally provided by the public sector. Frequently, innovations are produced through collaborative efforts between different stakeholders such as research institutions, universities and the private sector. Therefore, for innovation to be enhanced, a network of organizations and individuals must work together. The advantage of a PPP is that the management skills and financial acumen of private businesses could create better value for money for taxpayers when proper cooperative arrangements between the public and private sectors are used. PPP can increase the quality, the efficiency and the competitiveness of public services. It can supplement limited public sector capacities and raise additional finance in an environment of budgetary restrictions. The best use of private sector operational efficiencies can increase quality to the public and the ability to speed up infrastructure development.
Partnerships between private and public institutions provide advantages to both parties. Private-sector technology and innovation, for example, can help improve the operational efficiency of providing public services. The public sector, for its part, provides incentives for the private sector to deliver projects on time and within budget. In addition, creating economic diversification makes the country more competitive in facilitating its infrastructure base and boosting associated construction, equipment, support services, and other businesses.
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According to the World Bank Group, PPPs, are increasingly recognized as a valuable development tool by various stakeholder groups including governments, firms, donors, civil society, and the public. This is because well-designed PPP transactions have delivered quality infrastructure and services, often at lower cost, by harnessing private sector financing, technical know-how, and management expertise.
However, the implementation of an effective PPP implementing effective PPP transaction is complex as it requires substantial knowledge and skills. Building the capacity of officials responsible for overseeing PPP transactions to enable them navigate the complexity of delivery, will increase the chances of a successful outcome.
A good example is the partnership between AATF and IAR Zaria that led to the development and release of BT-Cowpea and Tela maize as well as the ongoing partnership between AATF and NCRI for the development of NEWEST rice and that between IITA and NRCRI for the development of NextGen cassava varieties. In spite of its huge potentials, PPP has its limitations, particularly, in the agricultural research sector. These challenges could be overcome through appropriate working mechanism and policy support.
Product Development:
To translate academic research to products, scientists must ensure that their research is relevant to the private sector and therefore can contribute to society via commercialization of their research that could lead to spin-offs that boost economic activity, create jobs and generate income.
From agricultural research’s point of view, product is synonymous with ‘innovation or technology’, which encompasses science and technology (S&T), research and development (R&D) as well as the adoption of scientific research outputs such as new production techniques or improved farming practices (Chernova et. al., 2019). Product development includes identifying market needs, conceptualizing the product, building the product roadmap, launching the product, and collecting feedback.
The conversion of knowledge to products is a complex one involving interactive scientific technology, demand, policy relations to mechanisms of feedback. Therefore, the responsibility of the organization regarding innovation does not end at production rather it transcends the whole path through dissemination, adoption and utilization of the innovations (Chema et al. 2001).
Different organizations follow different path in developing a product, but these are the most common stages are: identification of a market need; Quantification of the opportunity; conceptualization of the product; validation of the solution, and release of the product to users. The product also follow its life-cycle until retirement.
(To be concluded next week)
