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An Overview of the Canadian Agricultural Innovation System

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An Overview of the Canadian Agricultural Innovation System An Overview of the Canadian Agricultural Innovation System Agricultural Institute of Canada Institut Extended Version agricole du Canada Agricultural Institute of Canada - An Overview of the Canadian Agricultural Innovation System | 1 Agricultural Institute of Canada #320 - 176 Gloucester Street, Ottawa, ON, Canada K2P 0A6 This report should be cited as: AIC (2017), An Overview of the Canadian Agricultural Innovation System. Ottawa, ON: Agricultural Institute of Canada. Acknowledgements The research for this report was done by the Agricultural Institute of Canada (AIC). A summary of this study was prepared with financial and logistical support from the Canada Foundation for Innovation (CFI). The design, method and content of this document were determined by AIC. The report was written by Gloria Sánchez and edited by Bridget Schrempf. An Overview of the Canadian Agricultural Innovation System Released July 2017 This document may be downloaded from www.aic.ca © 2017 Agricultural Institute of Canada Agricultural Institute of Canada Institut agricole du Canada Agricultural Institute of Canada Informed . Credible . Current Vision Founded in 1920, the Agricultural Institute of Canada (AIC) is Canada’s only organization whose sole focus is agricultural research and innovation with a mission Canadian agriculture to be its voice at the national level. is a global leader in stewardship of our land AIC's mandate is: • Influence public policy; through science. • Disseminate information; • Promote careers in agricultural research and innovation; • Facilitate networking; and, Mission • Encourage international linkages. For the Agricultural For over ninety-five years, the Agricultural Institute of Canada (AIC) has responded Institute of Canada to to the needs of its members in serving the agricultural community, playing a central be Canada’s Voice for role as a source of credible information and comment for the Canadian agriculture Agricultural Research and and agri-food sector. Innovation. The Institute has established itself as one of Canada’s foremost advocates for agricultural research and an important tool to facilitate the dissemination of agricultural research to academics and industry stakeholders. Today’s AIC represents a common voice for agricultural research and innovation. We consult, work with our members and develop policies that benefit the agricultural innovation system. An Overview of the Canadian Agricultural Innovation System provides a detailed description of Canada's agricultural research and innovation landscape, identifying its main strengths and contributing to finding appropriate solutions to emerging issues in the sector. Agricultural Institute of Canada - An Overview of the Canadian Agricultural Innovation System | 3 Contents Summary 5 A. Introduction 9 A.1. The Agriculture and Agri-Food System in the Canadian Economy 9 A.2. The Agricultural Innovation System 9 B. Canadian Agricultural Research Landscape 10 B.1. Structure of Agricultural Research in Canada 10 B.1.1. Innovation Actors: Funders, Performers, Intermediaries and International 10 Partners B.1.2. Policy and Governance 12 B.2. Investments in Agricultural Innovation 14 B.2.1. Funding Mechanisms for Agricultural R&D and Innovation 14 B.2.2. Funding Trends in Agriculture R&D 17 B.2.3. Human Capital 20 B.2.4. Knowledge Infrastructure 22 B.3. Dissemination of Agricultural Research 25 B.3.1. Trends in Scientific Production: Quantity and Quality of Canadian Research 25 Publications B.3.2. Knowledge Management and Commercialization of Agricultural Research 28 B.3.3. Knowledge Transfer, Extension and Advisory Services 28 C. Analysis: Main Strengths and Weaknesses for the Canadian Innovation System 31 C.1. Return on Investment and Balanced Funding Models for Agricultural Research 32 C.2. Scientific Base Capacity and Deployment 35 References 36 Key Terms 40 Agricultural Institute of Canada - An Overview of the Canadian Agricultural Innovation System | 4 Summary Canada’s agricultural sector From farmers and ranchers to food and beverage processors, retailers and provides one in eight jobs, consumers, Canada’s rich and diverse agriculture and agri-food system plays generating 6.6 % of the a critical role in an economy increasingly dominated by manufacturing and country’s GDP. service industries, generating $113.8 billion – 6.6 % of Canada’s GDP. Canada’s agricultural sector provides one in eight jobs in Canada, employing over 2.3 million people – one million more workers than those employed in the energy and renewable resources sector. With a sparse population and a large supply of natural resources, our agricultural sector has continued to expand over the years, reporting a compound annual growth greater than that of the healthcare and life-science sector. Canada is the fifth-largest Canada is now the fifth-largest global exporter of agri-food products global exporter of agri-food generating export sales of $55 billion – 5.7% of the total value of world food products generating 5.7% of and agriculture exports. the total value of world food and agriculture exports. A rapidly-growing world population, rising income in developing countries and favourable global market trends are expected to raise demand for agricultural products worldwide, contributing to an estimated annual growth of 2% in Canada’s agriculture trade by 2025. Agricultural innovation is the key driver of economic growth in the sector, enabling greater competitiveness as well as opportunities to meet food security and sustainability goals in Canada and around the world. Agricultural innovations have contributed enormously to the transformation of Canada’s agriculture sector over the last 50 years, strengthening our competitive position internationally. Yet, while investments in agriculture research continue to slow down and increases in land use are no longer available, technological competition grows from emerging agricultural export countries. Unless we capitalize on our strong innovative potential, Canada’s agricultural productivity gains will be unable to sustain momentum in today’s changing global trade environment. Agricultural Institute of Canada - An Overview of the Canadian Agricultural Innovation System | 5 FOCUS AREAS FOR GROWTH IN AGRICULTURAL RESEARCH AND INNOVATION Funding High Canadian and global benefit-cost ratios for agricultural research – estimated to range from 10:1 to 20:1 – confirm that the productivity gains attributed to agriculture R&D is worth many times the value of its expenditures. Very large marginal benefit-cost ratios may, however, reflect substantial and continued underinvestment in agriculture R&D, suggesting that it would likely have been profitable to have invested much more. Key funders of agricultural This has an enormous impact on Canada’s agriculture where the public sector research appear to either continues to be the largest source of funding for agriculture R&D. Furthermore, under-invest or decrease other key funders of agricultural research, particularly the private sector, also their investments in appear to either under-invest or decrease their investments in agriculture R&D agriculture R&D. due to low short-term returns on investment or insufficient incentives. Total expenditures by the federal and provincial ministries of agriculture in support of the agriculture and agri-food sector as a whole have gradually declined over the past decade. The portion of this support going to producers has mostly been geared towards smoothing volatility and managing risk at the farm level rather than investing in variables affecting productivity growth such as the adoption of new technologies. Budgetary expenditures specifically financing the Canadian agricultural innovation system, represented 0.046% of Canada’s total GDP in 2015, ranking 7th worldwide and steadily declining over the past three decades. In 2015-16, $649.5 million of total federal Science and Technology (S&T) investment went through the federal ministry of agriculture toward agriculture and agri-food R&D. Both real AAFC and provincial R&D expenditures have demonstrated a slow downward trend from peak funding levels over the last two decades. Knowledge Creation, Dissemination and Adoption of Innovation Despite ranking 8th worldwide in scientific production of agricultural research, Canada’s number of patents has progressively dropped over the last decade. Food processing companies are less innovative than other types of manufacturing enterprises, partially reducing their capacity to process The lack of a common domestic agricultural output and contributing to the country’s US$3.2 billion analytics platform and rural trade deficit for agri-food products. broadband often prevents While farmers and producers can benefit from new digital technologies, farmers and producers from information and technical resources, the lack of a common analytics platform realizing the full potential of and rural broadband often prevents farmers and ranchers from realizing the large-scale research. full potential of large-scale research such as precision agriculture. Industry associations and commodity groups have increasingly taken the leading role in extension activities with new dissemination channels and on-field training opportunities to facilitate stakeholders’ understanding of technical knowledge. Nevertheless, most farmers still rely on their own experience and experimentation rather than third-party advice to implement a new technology or process. Agricultural Institute of Canada - An Overview of the Canadian Agricultural
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