Is Development a Good Business Strategy? Find Out in Montreal

Guest Post by Matias Bendersky, Unit Chief, Partnerships and Resource Mobilization Unit, Inter-American Development Bank

Brands today face increasing expectations from ever more Empowered Consumers who hold businesses to higher standards than ever before. This Empowered Consumer is driven by values—she looks beyond affordability and quality to brands’ impact on individuals, communities, and societies. She is informed—she has access to more information than has ever been available, and has the ability to cultivate a deeper knowledge of companies’ operations and the footprint they leave behind. She is connected—she lives in an age in which more than a billion tweets, Facebook posts, and blog updates are published daily, and can instantly voice her satisfaction—or lack thereof—with brands who operate in unsustainable ways. And she has the power to be selective—she has access to as many as 140,000 products at today’s largest megastore, and can take business away from those that fail to operate sustainably in favor of those that do. 

To thrive in this new context where The Empowered Consumer holds more knowledge and power than ever before, businesses are increasingly looking to integrate sustainability into their operations. Yet while companies have long been in the business of generating profit, generating social and environmental returns comes less naturally, with many struggling to identify how to link social good to their core business, and lacking the capacity to measure their efforts. Given that development actors increasingly rely on corporate participation to achieve viability and innovation, it’s clear that challenges are faced by the public, private, and non-profit sectors alike: development actors must involve companies to make their efforts inventive and sustainable, while businesses looking to stay competitive must engage in development to effect the root causes of social problems where they do business or to better integrate sustainability into their business practices, but lack the skills to do so effectively. 

So how are we to fill this gap? We at the Inter-American Development Bank (IDB) believe the answer lies in empowering today’s leaders to think and do things differently. In Montreal this July, we will be doing just that. In partnership with the Institute for the Study of International Development at McGill University, ranked among the top 25 universities globally, and Google, we have developed an executive education certificate program which strives to give today’s professionals the collaborative, 360° approach they need to bring these worlds together. From July 25 - 29, the “Real Development, a Good Business Strategy? Closing the Gap” program will tap into the expertise of McGill faculty, IDB specialists, and forward-thinking actors like the Calvert Foundation, Google, Novozymes, PepsiCo, and The Coca-Cola Company to help participants rethink how they think. Exploring the question, “is real development a good business strategy?” participants will leave this program with a clear answer, and a deep understanding of how to transform their organizations for the better. Register today. 

Science, Technology, and innovation for the sdgs: highlights from the first u.n. multi-stakeholder forum on science, technology, and innovation & the role of business

SEEKING TRANSFORMATIVE TECHNOLOGIES AND THEIR DEPLOYMENT

“In this Forum, we should not just be talking about technology innovation in general - what we are interested in here are transformative technologies for the SDGs”

•    Ambassador Macharia Kamau (Kenya’s Permanent Representative to the UN & co-chair STI Forum)

Can the STI Forum Itself Be Transformative?

The first annual U.N. Multi-Stakeholder Forum on Science, Technology and Innovation for the Sustainable Development Goals (STI Forum) met on June 6th-7th at the United Nations in New York.   Ambassador Macharia Kamau, Kenya’s Permanent Representative to the UN, and Mr. Vaughan Terukian, Science Advisor to the US Secretary of State, chaired the discussions.

Part of the UN Technology Facilitation Mechanism (TFM), the STI Forum is intended to:

- help analyze technology needs and gaps for scientific collaboration, innovation, and capacity-building to achieve the SDGs;

- support development of multi-stakeholder networks and partnerships to advance STI for the SDGs. 

So, will the STI Forum itself be a “transformative” body in the UN, and break the prevailing North-South gridlock on ‘technology transfer and cooperation?”  It is too soon to judge the impact it will have, but its first meeting gave reasons for optimism.  Conducted as an interactive and open dialogue, it’s format was a considerable departure from many UN meetings, giving almost equal time to government, UN, NGO and business speakers throughout the session.  The Co-Chairs and moderators added their guiding questions, inviting comments on next steps.

Business at the STI Forum

Business weighed-in throughout the two day discussion, bringing practical guidance with a focus on establishing supportive governance frameworks and exploring a wide diversity of partnerships.  A prime example was the intervention of Solomon Assefa, Head of Research for IBM Africa, who presented the company’s approach to advancing not just their own innovation initiatives, but their involvement of their local community through partnerships, training and other collaborative efforts.  He emphasized the importance to use all vehicles for innovation, whether internal or in multi-stakeholder discussions.  

Louise Kantrow, ICC’s Permanent Representative to the UN, stated the commitment of the Global Business Alliance for 2030 to mobilizing private sector innovation in technology and practice for the SDGs. 

Norine Kennedy, USCIB’s Vice President for Environment, Energy and Strategic International Engagement highlights that innovative technology’s potential to advance the SDGs depended on broad dissemination and deployment:

"Whole of economy approaches will be needed, and innovation ecosystems have to function effectively, have to be economically sustainable, have to provide shared value in the global marketplace.   This depends not only on STI policy, but also on trade policy, IP protection, good governance, and other key areas."

Innovation Ecosystems for the SDGs: A Wide Range of Options Tabled at the STI Forum

The emphasis throughout the two day Forum was on enabling policies and practices at national and regional levels, with a broad consideration of different approaches to creating and reinforcing “innovation ecosystems,” whether through partnerships, public-private coalitions, or academic and R&D incubators.

In particular, the Forum’s Ministerial Dialogue on “Effective Science, Technology and Innovation Policy Frameworks” featured notable policy initiatives and recommendations: 

China described its national STI for SDG Strategy (“STI for Social Development”) including the formation of a green technology bank as a supporting mechanism for innovation.  China has also established bilateral channels, which allowed 10,000 scientists from 120 developing countries to receive training within the country, and has instituted 189 national sustainable development pilots.  

Kenya presented its approach to STI policy as an integral component of its national Vision 2030 Plan for global competitiveness and economic development.  The comprehensive policy package includes STI recommendations for priority SDGs, including jobs and economic growth, poverty, health and gender equality.  While the presentation highlighted “an IPR regime” as part of Kenya’s STI infrastructure, it also referred to “facilitation of acquisition of IPRs by scientists, researchers and innovators,” which could be interpreted in several ways.

Chile discussed its initiatives for STEM education, and the encouragement of open innovation platforms for local entrepreneurs in order to facilitate the adoption and adaptation of new technologies.  

The International Labor Organization (ILO) underscored that the future of work is affected by STI through its effects on productive capacity.  Challenges and opportunities include the impacts on employment presented by automation trends, “ultra flexibilization,” and the emergence of so-called “zero contracts.”  

The United Nations Conference on Trade and Development (UNCTAD) noted that it actively assists countries with reviews of science and technology policies to identify areas of intervention and then develops action plans in which good practices and lessons learned serve as a basis for policy adjustments.

Continuing and Broadening the Dialogue in the STI Forum and TFM

The TFM needs to advance dialogue, action and partnership on technological innovation in practical, inclusive and prioritized ways.  In other words, the TFM and STI Forum need to construct their own “eco-systems for innovation” inside the UN’s institutional architecture.  

What would that include?  In our view, the TFM should move to involve business experts, either in expanding the “Group of 10” on its existing Advisory Committee or including representative business experts in some advisory capacity.  If the STI Forum does decide to move to provide technology roadmaps or expert working groups, as the Co-Chairs suggested, the specific topics should seek the broadest engagement of business sectors, not only along sectoral lines, but also across supply and value chains.  

The first UN STI Forum was noteworthy: it set the stage for out of the box dialogue and consideration of collaboration to share knowledge, promote innovation and jump-start R&D relevant to the SDGs across education, academia and business. The private sector is ready to offer perspectives, know-how and experience to inform its further work.

Science, Technology and Innovation for the SDGs: a primer for business on the First U.N. Multi-Stakeholder Forum on Science, Technology and Innovation

The first annual U.N. Multi-Stakeholder Forum on Science, Technology and Innovation for the Sustainable Development Goals (STI Forum) will meet next week on June 6th-7th at the United Nations in New York.  Participants will include Member States, UN organizations, civil society, academia, industry, the private sector, and authorized individuals such as scientists, sustainability change agents, innovators, and entrepreneurs.  USCIB representatives will attend the STI Forum in order to gauge opportunities for private sector engagement.

A glance at the provisional agenda shows an impressive line-up of academic, public sector, and U.N. speakers that will cover a range of topics. But is it reflective of the main actors involved in technology innovation and its deployment?

Surprisingly, business representation on the program seems rather limited.  Innovation and its deployment depends to a substantial degree on business, and this will be especially true concerning the SDGs’ deployment, which is intended to be universal across all countries and mobilize not just states, but also the private sector and civil society.  The business community represents a deep and wide “talent pool,” which the STI Forum and the UN as whole should tap in implementation of the 2030 Agenda for Sustainable Development.

From a business standpoint, questions for attention at next week’s session include:

1. What specific mechanisms (e.g. networks or partnerships) will the STI Forum foster in order to leverage the resources of the business sector (micro-enterprises, cooperatives, small and medium enterprises, multinationals, state-owned enterprises)?
2. Are there specific sustainable development priorities (i.e. inclusive growth, social equity and progress, environmental protection) the mechanisms will seek to prioritize over others?  How will these priorities and strategies for investment be decided upon?  How will business’ views on those priorities and their implementation be solicited?
3. How will progress of STI Forum initiatives be measured?

Going into next week’s discussions, this post provides some useful background and structural explanation of the Technology Facilitation Mechanism and its objectives.

Where did the STI Forum Come From?  

The STI Forum meeting is convened by the Technology Facilitation Mechanism (TFM), a new UN body established by the Addis Ababa Action Agenda on Financing for Development, and first mentioned in the UN Rio+20 outcome, The Future We Want (Target 17.6).  Its mandate is to advance the technology components of the SDGs and the UN 2030 Agenda for Sustainable Development Agenda.

"Target 17.6

Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism"

The TFM’s purpose is to support the achievement of the SDGs, further multi-stakeholder collaboration in that pursuit, and strengthen coherence and synergies among science and technology initiatives already operating within the UN system.  The STI Forum is one of three components of the TFM , which also includes:

• an online platform and channel for information on existing STI measures, techniques, and programs;

• a UN Inter-agency Task team on Science, Technology and Innovation for the SDGs (IATT)

The main engagement point for business in the TFM is the Multi-stakeholder 10-Member Group of Experts appointed by the Secretary-General to present ideas, guidance, and recommendations to the UN Inter-agency Task Team on Science, Technology and Innovation for the Sustainable Development Goals (IATT).  Interestingly, the multi-stakeholder group’s first cohort has only one business representative, which seems less than desirable given the critical role business plays in sharing knowledge and expertise on technology issues.    

Nonetheless, the STI Forum provides an opportunity to begin a discussion about improving  opportunities for the private sector to engage in this important policy conversation with clear focus on the SDGs as the framework for action.

STI Forum Objectives/Framework

The STI Forum has several ambitious objectives:

• to promote STI for the SDGs by Member States, mobilise action and partnerships

• offer a platform for exchange on applying STI to the SDGs,

• develop ideas for the TFM online platform.  

More specifically, the STI Forum aspires to present a venue for enabling interaction, matchmaking and the development of multi-stakeholder networks and partnerships that can help analyze technology needs and gaps as it pertains to scientific collaboration, innovation, and capacity-building in the context of achieving the SDGs.  

The following questions will guide the discussions next week:

1) Why are science, technology and innovation essential for the achievement of the Sustainable Development Goals?

2) What are the main opportunities and challenges – at policy, organisational and individual levels - for maximizing the contribution of science, technology and innovation to the achievement of the Sustainable Development Goals?

3) What are the key elements that countries and international organizations may need to take into account in formulating action plans and/or roadmaps for science, technology and innovation for the Sustainable Development Goals?

4) How can we deploy existing knowledge and new, innovative solutions and technologies and make them more readily available to those who need them?

5) What would be success criteria for the STI Forum in the coming years? What questions should the STI Forum focus on?

For business, a critical area of interest in these discussions is the question of how to strengthen existing ecosystems for innovation and create them where they do not exist . Innovation ecosystems are the enabling environments necessary to promote innovation, particularly the foundational building block of functioning intellectual property rights regimes.

Where Does the New UN Technology Bank for LDCs Fit In?

Concurrently, the UN is instituting  a new Technology Bank (TB) for Least Developed Countries (LDCs) in Istanbul, following from a 2011 commitment and subsequent support in the Addis Ababa Action Agenda.  The TB LDCs now has a Governing Council and a dedicated trust fund that is officially open for voluntary contributions from Member States. The TB LDCs, whose development was supported by a High-Level Panel of Experts in 2015, is modeled after the United Nations University and is intended to strengthen national capabilities and provide expertise to LDCs to ensure that they are not left behind technologically.

"Target 17.8

Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology"

The Technology Bank for LDCs will consist of

• a bank of patents to assist LDCs with accessing and using suitable technologies;

• a Science, Technology, and Innovation Supporting Mechanism to aid with enhancing scientific research and innovation platforms of LDCs; and

• a science and technology research repository to advance global networking of researchers and research institutions in LDCs.  

It aims to

• enhance scientific research and innovation platforms,

• encourage networking between researchers and research institutions,

• assist these actors with access to and use of critical technologies,

• pull together bilateral opportunities and backing by multilateral institutions and the private sector, improving on existing international initiatives.

Zeroing in on Innovation - Embedding The Real World in UN Technology Discussions

A key element of innovation ecosystems and their dissemination of know-how and technology are identifying and working with various pathways for technology transfer and cooperation - whether through private-private, public-private and other means.  While technology flows through a variety of cooperative and ODA channels, the private sector functions as a central agent of technology transfer and deployment.

As noted in the United Nations General Assembly Technology Bank and Science, Technology and Innovation Supporting Mechanism Dedicated to the Least Developed Countries Report of the Secretary-General:

"In their efforts to encourage and promote technology transfer, developed country governments are usually limited by two factors: (1) they do not own the vast majority of such technologies; (2) they cannot force the private sector to transfer its technologies. Incentives can therefore only take the form of encouragement, promotion and facilitation of projects which are part of a global and comprehensive approach to development...."

For business, this comprehensive approach to development in the context of the SDGs must work in harmony with  innovation ecosystems and global markets.  

Since the SDGs call for transforming  the economic and political relationships with developing, emerging, and developed countries, the STI Forum/Technology Bank should consider how to involve global AND local business communities, even in LDCs, to scale-up and spread innovation for the SDGs.  In addition, technological progress presents novel and cost-effective resolutions to challenges in key areas of sustainability such as climate change, healthcare and agriculture. As a result, it is vital that the STI Forum’s platform tie in to networks that enable the business sector to engage in partnerships that catalyze achieving the SDGs.

As business prepares to join the STI Forum discussions next week, we will be looking to bring a “real world” perspective and suggestions to utilize and incentivize private sector investment and action in their efforts to promote and scale up technology innovation for the SDGs.

References

Giovannini, Enrico, Ingeborg Niestroy, Mans Nilsson, Francoise Roure, and Michael Spanos.  2015.  The Role of Science, Technology and Innovation Policies to Foster the Implementation of the Sustainable Development Goals (SDGs) Report of the Expert Group “Follow-up to Rio+20, notably the SDGs”  European Commission Directorate-General for Research and Innovation Climate Action, Environment, Resource Efficiency, and Raw Materials

Brant, Jennifer, and Balaji Parthasarathy.  2015.  Innovation And Intellectual Property Series.  The Dynamics of Global Technology.  Pg 5. Research Paper 4  International Chamber of Commerce.