Funding Innovation ‐ The Journey Continues November 25, 2013 Funding Innovation Symposium – the Journey Continues g y p y A value chain process to develop a “Made in Canada” system to fund plant breeding and research Fairmont Hotel, Winnipeg November 25, 2013 Facilitator: Warren Wilson, Intersol
Funding Innovation ‐ A Technology Value System November 25, 2013 Why is CSTA Facilitating ? • International Seed Federation Study determined that Canada’s I t ti l S d F d ti St d d t i d th t C d ’ ability to generate funds for research, plant breeding and variety development in wheat ranks closest to the lowest in a ety de e op e t eat a s c osest to t e o est the world • There is a strong demand for new and improved varieties to g p improve Canada’s competitiveness • Government of Canada is refocusing its research priorities and looking to the private sector • For many crops, private sector is unable to recover investment costs
Funding Innovation ‐ A Technology Value System November 25, 2013 Why is CSTA Facilitating ? • CSTA’s Board priority is to create an environment that fosters investment and innovation • Recognizes that this cannot be achieved by the seed sector alone
Funding Innovation ‐ A Technology Value System November 25, 2013 The Value Chain Process • International symposium April, 2013 I t ti l i A il 2013 • Objectives Were: ‐ To achieve a common understanding in the value chain of systems in selected countries ‐ To achieve a common understanding of the Canadian environment ‐ Ultimate goal – to agree to work towards the development of a “made in Canada” system
Funding Innovation ‐ A Technology Value System November 25, 2013 The Value Chain Process • Symposium Conclusions were: S i C l i ‐ The current system does not and will not stimulate investment investment ‐ A new model needs to be developed collectively by the value chain value chain ‐ The model must ensure that all who contribute benefit, and all who benefit contribute and all who benefit contribute • Working Group established to develop and propose a new model model
Funding Innovation ‐ A Technology Value System November 25, 2013 Value Chain Work Group was established in April, 2012 Crosby Devitt, Grain Farmers of Ontario Grain Producers Kent Erickson, Alberta Wheat Commission Dave Hansen, Canterra Seeds Seed Sector Archie Wilson, C&M Seeds George Clayton, AAFC Research Branch Plant Breeders/Developers Norm Dreger, Syngenta Monte Kesslering, Viterra* Grain and Seed Logistics Grain and Seed Logistics Dave Sefton, Western Grains Research Funding Organization Foundation Andrea Johnston, AAFC Innovation Policy , y AAFC AAFC * A change in employment resulted in Monte leaving the group in early November
Funding Innovation ‐ A Technology Value System November 25, 2013 CSTA’s Role: • CSTA is facilitating the process CSTA i f ilit ti th • CSTA’s members are actively participating • Results of the process will be the product of a collective • Results of the process will be the product of a collective process • Success will belong to the value chain Success will belong to the value chain
Funding Innovation ‐ A Technology Value System November 25, 2013 Project Overview Obj Objective of the Working Group ti f th W ki G To design as system concept for discussion that conforms to • the principles identified in April the principles identified in April ‐ Principles ‐ Objective Objective ‐ Scope ‐ Glossary of Terms Glossary of Terms
Funding Innovation ‐ A Technology Value System November 25, 2013 Principles A A new or revitalized model should: it li d d l h ld 1. Be built on a plan that is defined in a collaborative way and founded in consensus founded in consensus 2. Be proactive to ensure that the results meet value chain needs in the future (market pull) needs in the future (market pull) 3. Be flexible and adaptable to the needs of the marketplace 4. Encourage and promote competition along the value chain
Funding Innovation ‐ A Technology Value System November 25, 2013 Principles A A new or revitalized model should: it li d d l h ld 5. Ensure that value is generated for the entire value chain and that the system rewards success that the system rewards success 6. Ensure that everyone who benefits, contributes – and that the contribution is commensurate with the benefit the contribution is commensurate with the benefit 7. Be forward looking and change embracing but not discount what we have what we have 8. Be efficient and transparent and not leave a large administrative footprint administrative footprint
Funding Innovation ‐ A Technology Value System November 25, 2013 Objective: Objective: To design and propose a “Canadian Technology Value System” that will effectively capture funds from the value chain for y p investment in plant breeding and technology development, in order to bring benefits to all stakeholders along the value chain. h i
Funding Innovation ‐ A Technology Value System November 25, 2013 Scope • Initial focus on cereals (wheat, oats, barley) ( , , y) ‐ But have the potential to be adopted for other crop kinds should the value chain choose • Focus on engaging the value chain to increase investment in plant breeding, technology and variety development • Will complement the work of commissions, commodity and Will l t th k f i i dit d trade associations but will not address: ‐ Marketing and marketing systems g g y ‐ Regulations or regulatory reform ‐ International trade or trading rules ‐ Market development and promotion M k t d l t d ti ‐ Industry organization or policy advocacy structures
Funding Innovation ‐ A Technology Value System November 25, 2013 Glossary of terms Royalty As allowed under Intellectual Property law, a royalty is a payment made to an inventor every time something they have created or invented is bought or used by others. Royalties have the purpose to compensate the inventor for the use of the Royalties have the purpose to compensate the inventor for the use of the technology/product he/she has invented. Seed Royalty A payment made to the inventor (plant breeder/developer) of a variety, collected from the acquirer (purchaser) on the first acquisition of the seed. Farm Saved Seed Royalty F S d S d R lt A payment made to the inventor for the subsequent use of his/her invention each time A t d t th i t f th b t f hi /h i ti h ti the product of planting his/her invention is used for seed. End Point Royalty A payment made to the inventor (plant breeder/developer) of a variety collected on the grain or product resulting from the planting of the seed and returned directly to the inventor. h Check ‐ off/Levy Funds collected on delivery of a product – generally crop specific – by a central organization empowered to do so by federal and/or provincial regulation. Funds are used for any purpose defined by the organization (e.g. research, communication, market development, funding a specific organization etc.) i ti k t d l t f di ifi i ti t ) Technology Value System The term proposed as the name for the concept that will be designed by the working group. A system designed to ensure that all (along the crop value chain) who benefit from the results of plant breeding and research make a contribution results of plant breeding and research make a contribution. Or A system designed to generate funds for investment in plant breeding and research, contributed by all stakeholders along the value chain.
Funding Innovation ‐ A Technology Value System November 25, 2013 Project Overview A “Technology Value System” that has three components gy y p 1. Determining the value – what is required? How should it be measured? 2. Capturing the value – a mechanism to generate funds from the value chain 3. Sharing the value – how to demonstrate that the objective is being achieved
Funding Innovation ‐ A Technology Value System November 25, 2013 Determining the Value Work Group considered possible ways to determine the value to p p y be captured and shared 1 Possible Indicators of “increased value” for each of wheat, oats and barley: • By 2025 the number of plant breeders and developers making varieties available to the Canadian marketplace will ki i ti il bl t th C di k t l ill have increased by X% • By 2025 the number of varieties available to farmers will • By 2025 the number of varieties available to farmers will have increased by X%
Funding Innovation ‐ A Technology Value System November 25, 2013 • By 2025 the annual rate of yield gain from genetics will have increased from the current X% to X% CWRS h CWRS wheat yield vs. year of registration i ld f i i (data from SK and MB Seed Guides) 120 Manitoba Manitoba Saskatchewan 110 100 100 90 80 70 70 1950 1960 1970 1980 1990 2000 2010 2020 (Thomas, J. and Graf, R. 2014. Can. J. Plant Sci. In press.)
Funding Innovation ‐ A Technology Value System November 25, 2013 Determining the Value • Canada’s investment compared to selected countries • An analysis by Agriculture and Agri ‐ Food Canada The AAFC presentation will be distributed once it is approved for distribution
Funding Innovation ‐ A Technology Value System November 25, 2013 Determining the Value ‐ Discussions • What do we like about these approaches? • Are they the correct ones? • Should we use indicators? Are these appropriate? Others? • What are the impressions of the Canadian investment position? • Is total investment an appropriate indicator?
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