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Innovacion agropecuaria

Are the Agricultural R&D Systems in the Region Prepared to Face the Challenges of Agriculture?

January 22, 2024 por Gonzalo Muñoz - Luis De Los Santos Leave a Comment


The agri-food sector is critical for achieving various Sustainable Development Goals (SDGs), such as zero hunger (SDG2) and poverty eradication (SDG1), as well as those related to environmental sustainability and equity (FAO). Therefore, it needs to increase its productive capacity to feed a growing population sustainably and inclusively, providing the quantity and variety of foods necessary for a nutritious diet. The impacts of climate change on agriculture and biodiversity further complicate this challenge.

A recent USDA publication shows that the global agricultural production growth rate was nearly a third slower in the period 2011-2021 compared to 2001-2010 (1.94% annually versus 2.74% annually, respectively). In the last period, global agricultural production increased at the slowest pace in the past six decades. Most of the decline in production is attributed to the deceleration of agricultural productivity growth. In the last analyzed decade, the average growth of Total Factor Productivity (TFP) was 1.14% annually, compared to 1.99% annually in the 2001-2010 period. Considering only developing countries, the slowdown in TFP growth was even greater, dropping from an average of 2.20% annually in the 2000s to 1.06% in the 2010s. Factors such as climate change, weather disturbances, the emergence of new pests and diseases, and the slowing development of new technologies explain the decline in productivity.

Previous USDA and other research have highlighted a decrease in public spending on agricultural R&D, which could be associated with a long-term decline in TFP growth. This is where innovation and technology play a crucial role, leading us to the following question:

What is the state of research and technological innovation in Latin American and Caribbean countries to address these challenges?

The Inter-American Development Bank’s publication titled “Unleashing Innovation: Assessment of the Role of Agricultural R&D in Latin America and the Caribbean” provides a comprehensive analysis of public agricultural R&D in the region. Based on data collected in the study and other sources, the report examines recent trends in spending, public research capacity, and its outcomes throughout the region.

The findings reveal a historical underinvestment in agricultural R&D in Latin America and the Caribbean, with a concentration of resources in a few countries, particularly Brazil. The report also highlights the problem of inadequate human capital in agricultural research in many countries of the region. This situation leads to a gradual depletion of critical human resources needed for research, with potential consequences that could take decades to correct. Additionally, countries with smaller agricultural research systems face additional challenges, including underdeveloped innovation environments, lower quality and development of education and scientific research systems, and less effective R&D efforts.

The innovative capacity of countries in the region is highly heterogeneous. On one hand, Chile performs the highest in the region, followed by Panama, Costa Rica, and Uruguay. On the contrary, Nicaragua, Bolivia, Belize, and Paraguay are in a lower position. Intermediate capacity is found around countries with the largest economies in the region, especially Brazil, Colombia, and Mexico. Below the regional average are Guatemala, Honduras, the Dominican Republic, Ecuador, and surprisingly Argentina. Countries with innovative capacity above the regional average have higher levels of human capital, a conducive environment for innovation development, and greater research capacity than those below the average. Disparities in the innovation environment, innovation policy, and institutional quality explain the differences between Chile’s leadership in innovation and other countries above the average. These factors also explain the relatively low rankings of Brazil and, in particular, Argentina.

Another element related to institutional capacity is the investment made in research activities. Between 2007 and 2020, the ten countries included in the study collectively increased their research investments by approximately 45%, primarily driven by Bolivia and Peru. Despite this increase, only Panama allocates more than 1% of agricultural GDP to research, while five other countries invest less than 0.25%, an insufficient figure to address the challenges facing agriculture. Another concerning trend is that these low-investment countries have experienced a steady decline in their agricultural research intensity indices over time. In summary:

  • The region is highly heterogeneous in terms of its capacities, allowing countries to be grouped into three categories: (i) Large research systems – LRS; (ii) Medium research systems – MRS; and (iii) Small research systems – SRS.

  • Some implications of low investment and lack of human resources translate into poor performance, measured through scientific publications. The average cost of an indexed scientific publication is 67% higher in SRS than in MRS and LRS. This trend is likely to extend to other technological outputs such as varieties, bio inputs, etc.

  • In countries with SRS, public R&D has provided limited contributions to the growth of Total Factor Productivity (TFP). Between 2000 and 2020, public R&D contributed to an annual TFP growth of only 0.1% on average for these countries.

The food production chain in Latin America and the Caribbean has undergone significant transformations since the establishment of the National Agricultural Innovation Institutes (INIA). Today, there is greater integration of input and product markets, leading to an expanded and more diverse food chain with closer connections between primary production, food processing industries, and the retail sector (suppliers and traders). These changes in the food chain have diminished the political and institutional significance of INIA. Additionally, several INIA are not adequately prepared, both organizationally and institutionally, to incorporate advances in genome editing technologies in crops, animals, and microorganisms, as well as digital innovations that assist farmers, traders, and policymakers in making informed decisions along value chains. Fundamental changes in human resource development and closer collaboration between INIA and research centers, universities, public institutes, industries, and emerging actors such as telecommunications companies and software developers are required (Benfica et al., 2023).

The underperformance as mentioned above of research systems indicates the need for new institutions that prioritize innovation, collaborative systems, and the implementation of more flexible and competitive financing mechanisms while allowing for the inclusion of highly qualified and high-performing human resources. Changes need to be processed urgently if production levels are to be recovered and the proposed SDGs are to be achieved.

Unlocking Innovation: Assessing the Role of Agricultural R&D in Latin America and the Caribbean

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Related content:

Publication: Unleashing Innovation: Assessment of the Role of Agricultural R&D in Latin America and the Caribbean

Infographics: Seeds for Food Security in Latin America and the Caribbean

Blog: COP28: Why Food Systems Must Be at the Center of the Climate Agenda

Blog: Protecting the Planet to Ensure Food Security

Playlist: Seeds for Food Security IDB Events in 2023

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Image credits: Shutterstock


Filed Under: Agricultura y Seguridad Alimentaria, Agriculture and Food Security Tagged With: agriculture, Agriculture and Food Security, innovation, sustainability, sustainable development goals

Gonzalo Muñoz

Gonzalo Muñoz es Especialista en Desarrollo Rural de la División de Desarrollo Rural, Recursos Naturales y Gestión de Riesgos por Desastres del Banco Interamericano de Desarrollo (BID) desde el año 2008. Posee un título de Ingeniero Agrónomo y una Maestría en Finanzas de la Universidad de la República de Uruguay. Durante estos años en el BID, ha trabajado en el diseño, gestión y supervisión de proyectos de desarrollo rural en América Latina y el Caribe, habiendo estado basado en las Representación de Paraguay y República Dominicana, donde lideró el diálogo de políticas sectoriales. A partir del 2017 fue trasladado a Washington donde sumó responsabilidades de supervisión de la cartera de la División en general, además de participar en estudios de generación de conocimiento. Antes de ingresar en el BID; trabajó en la Oficina de Programación y Políticas del Ministerio de Ganadería, Agricultura y Pesca de Uruguay, en el Banco Central del Uruguay, y a nivel privado con el sector Cooperativo y directamente en la producción agropecuaria.

Luis De Los Santos

Luis De los Santos es consultor de la División de Medio Ambiente, Desarrollo Rural y Administración del Riesgo de Desastres del Banco Interamericano de Desarrollo. Previamente se desempeñó como director de investigación del Instituto Dominicano de Investigaciones Agropecuaria y Forestales (IDIAF), en la República Dominicana. En adición fue investigador en el Departamento de Economía Agrícola y Desarrollo Rural de la Universidad de Göettingen, Alemania, en donde realizó sus estudios de doctorado y postdoctorado. Su interés en la investigación se centra en el análisis del crecimiento agrícola con especial énfasis en la eficiencia técnica y el crecimiento de la productividad, la adopción de tecnología y su impacto económico en los sistemas productivos. El Dr. De los Santos ha publicado varios artículos de investigación en revistas científicas arbitradas en sus temas de interés.

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This blog is a space to reflect about the challenges, opportunities and the progress made by Latin American and Caribbean countries on the path towards the region’s sustainable development.

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