Creating Incentives for Private Sector Involvement in Poverty Reduction
Purchase Commitments for Agricultural Innovation
This chapter examines the creation of incentives for private sector involvement as a new approach to funding agricultural research and development for the tropics. It explains that this approach is an advanced purchase commitment that rewards innovative agricultural advances based on their adoption in the tropics. Purchase commitments such as this, which pay for research outputs, are appropriate for encouraging the development of specific, needed products and they can also potentially provide incentives throughout the product supply chain.
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