Business Model: How IRRI delivers knowledge for impact

Knowledge as a global public good

The Green Revolution was a not-for-profit venture withminimal private sector participation. It promoted HYV technologies that spreadfast as they were public goods. They worked on the principles ofnon-excludability and non-rivalrous consumption. Fulladvantages were captured by society at large including by those who couldnot afford to use it.

In principle, while seeds were free,distribution to meet the need and demand (especially in far–flung rural fields)entailed a cost.

As pilot implementation of HYVs and related technologies proved feasible,many poor countries set up National Agricultural Research and Extension Systems(NARES) to pursue agricultural development (World Bank, 1999). These agencieswere tasked to disseminate seeds and technologies and to work directly withfarmer organizations to adapt varieties to local conditions. In effect, the NARES helped bridge the gap betweenknowledge producers and consumers.

How IRRI delivers knowledge for impact

IRRI’s value chain(Porter, 1998) utilizes the same hub–and–spoke structure fashioned during theGreen Revolution. Because of the multi -country scope of its work, IRRI’sresearch—to—delivery process will be most effective by engaging donors, NARES,advanced research institutes (ARIs), and other collaborators (as shown below. For url please click here).

 

In terms of total dollar investment, this business model has been shown to generate positive returns (Raitzer,2003). At IRRI, the formula has worked especially well in three keyareas:

• User needs assesment: Without the assistance of local partners that havea direct line to their constituents, IRRI would be unable to determine the realneeds of farmers to be able to derive the appropriate technologies and tools todevelop through research.
• Research and development: To make sure it conducts research that isrelevant, IRRI’s processes must be inclusive and consultative.
• Delivering knowledge and evaluating impact: For market efficiency, a producer should deliver its offering directlyto its users. IRRI does not have the funds, manpower, and other resourcesrequired to do so. Intermediaries such as NARES and ARIs areindispensable players in this task.