Unmasking partnerships for agricultural innovation: the realities of a research–private sector partnership in Lombok, Indonesia

ABSTRACT

Research institute–private sector partnerships are promoted as a mechanism to increase the scale and sustainability of research impact, especially where government extension services are constrained. Such partnerships are often framed as simple transactional or contractual arrangements. This paper traces the evolution of a multi-lateral partnership between a public university, agri-input supplier, finance provider and local government in North and East Lombok. The partnership aimed to increase household incomes by introducing new practices for maize and pulse production, but in order to do so, had to enable farmers to access affordable credit and inputs in a timely manner. Analysis of the partnership over three years highlights its dynamic nature and the importance of a consistent champion who aligns the competing institutional incentives and aspirations of actors. It also highlights how partners bear different types and degrees of risk across different stages of the partnership. The findings affirm the potential for research–private sector partnerships to contribute to agricultural innovation but highlight a more complex and messy process than is acknowledged in the literature. A more realistic understanding of partnership and innovation processes needs to inform how schemes and innovation support mechanisms are designed if they are to deliver on the promise of scale and sustainability.

KEYWORDS:

• Research–private sector partnership
• agricultural innovation system
• maize
• brokers
• risks

Acknowledgements

This work was supported by the Australian Government’s Department of Foreign Affairs and Trade in partnership with the Government of Indonesia as part of the Australia-Indonesia Partnership for Rural Development (AIP-Rural). The project was implemented by Australia’s national science agency the Commonwealth Scientific and Industrial Research Organisation.

This research has been enriched by the generosity of partners and team members who have shared their experiences, reflections and insights into the partnership process. Our thanks to James Butler, Emma Jakku and reviewers for their constructive feedback and improvements to earlier versions of this paper.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Ethical approval

Human research ethics approval was provided by the CSIRO Social Science Human Research Ethics Committee, Application 071/14.

Notes

1 Participation by the private sector partners was limited in follow-up interviews, which reflects logistical constraints (they were often based in other cities) and the focus of ARISA to help strengthen the capacity of the universities to partner with the private sector. To try and account for the potential bias, additional interviews were conducted with ARISA team members who oversaw the grants process. These team members had regular contact with all partners and were able to provide some insights into the private-sector dynamics.

2 Usaha Mikro Kecil (UMK) Micro and small business are defined as businesses with a workforce of less than 10 people, and with a value of less than Rp 500,000,000 (approx. AUD50,000). Usaha Menengeh Besar (UMB) Large and medium enterprises are defined as having a workforce of more than 10 people and a net worth greater than Rp 500,000,000.

3 ARISA was one of four programs under the Australian Indonesia Partnership for Rural Economic Development promoting market systems development pathways to engage with the private sector and improve the livelihoods of smallholder farmers in eastern Indonesia

4 Strengthening Agricultural Finance in Rural Areas: Part of the AIP-Rural partnership, SAFIRA aims to expand smallholder farmers’ access to finance.

5 Local governments provide fertiliser to farmer groups at a subsidised cost. However, the process is notoriously complicated and prone to delays, which negatively impact agricultural production.

6 It was a deliberate choice of ARISA to focus on public research and the private sector, and not to formally include the government as a partner. Informally, government – especially at the district level – has been an important contributor to support the partnership and have recently supported training events on maize-pulse intercropping.

Additional information

Funding

This work was supported by the Department of Foreign Affairs and Trade, Australian Government as part of the Autralia-Indonesia Partnership for Rural Economic Development.