Policy innovations and opportunities for Africa’s Bioeconomy
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Policy innovations and opportunities for Africa’s Bioeconomy
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Dr. Moumini Savadogo, Managing Director, AKADEMIYA2063
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Policy innovations and opportunities for Africa’s Bioeconomy
- 1. Policy innovations and opportunities for Africa’s Bioeconomy Dr. Moumini Savadogo Managing Director, AKADEMIYA2063 Board Seminar – Kigali, 26 September 2023 www.akademiya2063.org
- 2. Outline www.akademiya2063.org What is bioeconomy? Continental and regional governing frameworks Opportunities created by the bioeconomy The enabling environment for successful bioeconomy development Experience from African countries
- 3. “The production and utilization of biological resources, applying science and technology across all economic sectors to facilitate productive innovations and to ensure a more sustainable use of resources”. Source: 2018 Global Bioeconomy Summit What is bioeconomy?
- 4. Contribute to green economy Application of science, technology and innovation to the sustainable production and use of biological resources to create innovative products, processes, and services for all economic sectors. High value addition based on the Ecosystem services of the biological resources (provisioning, regulating, cultural, supporting) Effective, efficient and sustainable production and use of bio-based materials, products and processes Improves sustainable consumption and production, What is bioeconomy?
- 5. Continental and regional frameworks Agenda 2063: Aspiration 1 “Well Educated Citizens and Skills revolution underpinned by Science, Technology, and Innovation” - Science, Technology and Innovation Strategy for Africa 2024 (STISA–2024) - African Biosciences Initiative (ABI) “Environmental sustainability and climate resilience” - Africa Bioenergy Policy Framework and Guidelines Cross-cutting: Biological intellectual property in Africa Regional efforts: East African Community (EAC) - Bioeconomy strategy 2021/22-2031/32 (first in Africa and second in the World)
- 6. Opportunities created by the bioeconomy Sustainable production and consumption Climate change mitigation & resilience New value chains and agro- processing Productivity Jobs Food security and nutrition Rural development Trade-offs
- 7. The enabling environment Governance Demand for bioproducts Intellectual property Science, research, and innovation Infrastructure Finance Partnerships and collaborations
- 8. www.akademiya2063.org Bioeconomy = production and use of biomass + innovation + the capacity to process or manufacture new bioproducts Step 1: Establishes a strong positive relationship between innovation and manufacturing data from the Global Innovation Index (GII), and World Bank national accounts and OECD National Accounts for manufacturing data Step 2: Juxtaposes innovation against biomass extraction data from GII and UN IRP Global Material Flows Database Resulting in 4 countries: Ghana, Namibia, South Africa, Uganda Experience from African countries – selection of continental frontrunners
- 9. Ghana: scaling up successes from cocoa, cashew & shea Council for Scientific and Industrial Research receives about 50% of public agricultural R&D expenditure Cocoa Research Institute of Ghana and COCOBOD: processing cocoa, cashew and shea nuts – and their by- products Effective incorporation of herbal medications into healthcare delivery
- 10. Namibia: biodiversity; research & science; inclusive approach Unique biodiversity Focus on research and science Dedicated institutional frameworks and policies Vision2030; National Development Plan and NSTIP; National Biodiversity Strategies and Action Plans; and Namibia Sustainable Blue Economy Policy Development of a dedicated bioeconomy strategy Public and private institutions supporting bioeconomy development
- 11. South Africa: world-class bio-innovation environment First comprehensive bioeconomy policy approved in Africa Advanced system of innovation Institutional support Financing and investments Attractive IP environment Programs to guide investments and for stakeholder collaboration Selected institutions • Bio-innovation Chief Directorate at Department for Science and Innovation • Council for Scientific and Industrial Research - Biomanufacturing Industry Development Centre • South African National Bioinformatics Institute
- 12. Uganda: agricultural R&D and incubators Hub of excellence on agricultural R&D Incubators Draft bioeconomy policy Initial successes in matoke & herbal medicines
- 13. Recommendations by the Malabo Montpellier Panel Identify gateway sectors through which to initiate the development of transition to a bioeconomy. Strengthen links to R&D and markets for new bioproducts and BioSolutions. Develop demand for bioproducts and BioSolutions. Regulate for sustainability incentives and to manage trade-offs. Set up independent national advisory boards to inform and guide the development of Bioeconomies.
- 14. Future opportunities Development and implementation of national bioeconomy strategies Regional bioeconomy strategies in other RECs An African continental bioeconomy strategy
- 15. Download our reports and subscribe to the newsletter www.mamopanel.org
- 16. Thank You
Notas do Editor
- In 2022, the Malabo Montpellier Panel published a report on the opportunities for Africa’s bioeconomy development. The Malabo Montpellier Panel, which convenes 18 leading experts in agriculture, ecology, nutrition, and food security to facilitate policy innovation by African governments to accelerate progress towards food security and improved nutrition in Africa. The Panel identifies areas of progress and positive change across the continent and assesses what successful countries have done differently. It identifies and analyses the most important policy and institutional innovations and programmatic interventions that can be replicated and scaled up by other countries. It is co-chaired by Dr. Ousmane Badiane (Executive Chairperson, AKADEMIYA2063) and Prof Joachim von Braun (Distinguished Professor, University of Bonn). The affiliated Malabo Montpellier Forum provides a platform to promote policy innovation by using the evidence produced by the Panel to facilitate dialogue and exchange among high-level decision-makers on African food systems transformation, climate change adaptation, and mitigation. The Forum is co-chaired by H.E. Hailemariam Dessalegn, former Prime Minister of Ethiopia, and H.E. Assia Bensalah Alaoui, Ambassador at Large to His Majesty Mohamed VI, the King of Morocco. Each year the Panel produced two evidence-based policy reports (accompanied by in-depth country analyses) – in 2022 we published this one on bioeconomy as well as a report on leveraging climate finance for food systems transformation.
- The definition goes beyond the traditional production-oriented approach in agriculture, forestry, and fisheries: there is added prominence of knowledge (scientific and traditional), technology, and innovation; and an emphasis on the development of bio-based processes, products, and services. A bioeconomy thus extends the use of biomass beyond food, feed, and fiber to include a range of pharmaceutical, industrial, and other value-added products such as green chemicals, industrial materials, and energy. Developing a sustainable and circular bioeconomy for Africa offers opportunities to use knowledge and biological resource to provide products, processes and services that optimize the social, economic and environmental benefits for a continent seeking to achieve societal ‘prosperity’. A sustainable and circular bioeconomy can serve a broad range of development needs from food and nutrition to energy and decent jobs.
- The definition goes beyond the traditional production-oriented approach in agriculture, forestry, and fisheries: there is added prominence of knowledge (scientific and traditional), technology, and innovation; and an emphasis on the development of bio-based processes, products, and services. A bioeconomy thus extends the use of biomass beyond food, feed, and fiber to include a range of pharmaceutical, industrial, and other value-added products such as green chemicals, industrial materials, and energy. Developing a sustainable and circular bioeconomy for Africa offers opportunities to use knowledge and biological resource to provide products, processes and services that optimize the social, economic and environmental benefits for a continent seeking to achieve societal ‘prosperity’. A sustainable and circular bioeconomy can serve a broad range of development needs from food and nutrition to energy and decent jobs.
- The African Union’s STISA 2014-2024: The 10-year strategy aims to transform Africa into a knowledge-based and innovation-led society; it identifies food security, nutrition, and the eradication of hunger as the top 3 of its 10 priority areas in terms of where there would be most benefit from the increased application of science, technology, and innovation. It promotes human capital development, innovation, value addition, industrialization, and entrepreneurship. And it calls upon AU member states to: upgrade their STI infrastructure; strengthen the innovation and entrepreneurship environment; and allocate at least 1 percent of GDP to R&D. African Biosciences Initiative: A flagship program of the Science and Technology Consolidated Plan of Action (CPA). Feeds into the agricultural, environmental and health strategies of NEPAD Implemented through four regional bioscience networks including SanBio – referred to in the South Africa Case study Bioenergy Policy: Joint effort by the AUC and UNECA. Published in 2013 The Bioenergy Policy Framework emphasizes the role of regional coordination of the production, trade, and use of bioenergy. Coordination efforts include the harmonization of policies that facilitate the development of a viable modern bioenergy sector led by RECs. Biological intellectual property: Continental Strategy for Geographical Indications 2018–2023 by AUC DARBE Aims to align IP goals with the AU Agenda 2063, CAADP, Malabo Declaration, and the SDGs Regional efforts: The EAC has produced its own bioeconomy strategy which is being adopted and implemented: creation of new forms of sustianble bioenergy, and the conversion of of waste materials to useful products
- There are tremendous opportunities for a transformed and sustainable African bioeconomy. A sustainable bioeconomy can help Africa progress to more sustainable production and consumption practices, in addition to accelerating progress toward its continental and global development commitments. The use of renewable biological resources, particularly those derived from agriculture, can also help to accelerate global sustainability. The application of research and knowledge, both scientific and indigenous, can enhance conventional linear value chains into more complex interconnected value webs that reuse waste from processes to create new products. Employment opportunities are also created through the application of cutting-edge bioscience and biotechnology in agro-processing and other value-addition Finally, a transition to a bio-based economy can accelerate the kind of growth in productivity that is crucial to improving food security and nutrition, and which contributes to rural development and overall economic growth. Trade-offs: developing a bioeconomy requires careful consideration of the trade-offs and spillover effects that manifest in producing and consuming more biomass, e.g. the overuse of, and competition for, water resources and land; loss of natural vegetation and biodiversity, reduced food security, labor competition. Careful design of projects: e.g. inclusivity and co-locating biomass and feedstock production with food production can avoid or mitigate potential conflicts.
- A bio-based transition is a long-term commitment requiring planning and investments in biomass production, human capacity and innovation systems, and manufacturing capacity. Governments are taking different approaches to facilitating the establishment of a bioeconomy: Brazil and Tanzania are focusing on increasing agricultural productivity, whereas countries such as South Africa and Kenya are focusing on transitioning away from fossil fuels, increasing agricultural productivity, fostering new and more efficient biomass use, and developing new industries and sectors. Governments generate demand using carrot and stick approach: discourage unsustainable and environmentally harmful practices and products such as conventional pesticides and plastics; and rewarding improved practices, products, and technologies such as biopesticides, clean energy, etc. They can also deploy product standards, certification, and labeling to accelerate uptake of bioproducts and biosolutions. A strong Intellectual property regime that provides copyrights, patents, trademarks, and similar rights to the developers of this knowledge into products can also drive a bio-based transition. An effective and dynamic national science, research, and innovation system is made up of an education system, public and private research institutions, and a thriving private sector that is able to scale the production and dissemination of innovations into mainstream products. A sustainable bioeconomy relies on access to energy, water, transport infrastructure, data, and information in order to improve biomass production, support research and innovation, and provide access to markets for bioproducts. Previous MaMo Panel reports have covered energy, water and digitalization… but important to remember: Investment in infrastructure for bioeconomy does not always need to be large scale, nor does need to be deployed at scale immediately. Small modular approaches to constructing biorefineries and incubators allow for flexibility in the speed and timing of scaling up, for example, once funding is secured. Finance: By positioning the establishment of a bioeconomy within wider global climate and health transitions, African governments can mobilize funds beyond their own national resources, and access sources through the European Green Deal, the Global Environment Fund, and the Green Climate Fund.
- We used a 2-step process in the development of our methodology to select the 4 country case studies to be analyzed in this report. We also – for the purpose of this report – said that Bioeconomy = production and use of biomass + innovation + the capacity to process or manufacture new bioproducts Hence in Step 1 we sought to establish a strong positive relationship between innovation and manufacturing and decided to use the Global Innovation Index for this purpose. The GII is produced by Cornell University, INSEAD business school, and the World Intellectual Property Organization (WIPO). It ranks the innovation ecosystem performance of countries around the globe each year. Countries are scored out of 100. To reduce possible measurement errors, average values of the data for the period 2017–2019 are used. Mauritius was the best performer in 2017 and 2018, scoring 34.82 and 31.31, respectively. South Africa was the best performer in 2019, scoring 34.04. The median score for 28 African countries over the 2017 to 2019 period is calculated at 24.5. This is set as the threshold for high and low performers. In the second step we then juxtaposed innovation – so the GII – against biomass extraction The biomass use data is sourced from the IRP Global Material Flows Database. The Global Material Flows Database provides data to help governments, policy researchers and interested stakeholders understand and trace the linkages between economic growth and raw material usage. The median for the average domestic extracted biomass per capita for the 28 countries over the 2017 to 2019 period was calculated to be 2.55 metric tons (mt) per capita. Countries that reported a biomass per capita equal to or above 2.55 mt per capita were placed in the high biomass per capita cluster and countries below that threshold were put in the lower cluster.
- Council for Scientific and Industrial Research is Ghana’s principal national research institution. It receives about 50 percent—the largest share—of public agricultural R&D expenditure, and public funds underpin as much as 80 percent of CSIR’s total annual budget. Overseen by a Statutory Governing Council that is composed of representatives from: the Ministries of Food and Agriculture; Health; Trade and Industry; Education; and Environment, Science, Technology and Innovation; • universities; • commercial associations representing mining, industry, commerce, and engineering; • the Ghana Academy of Arts and Sciences; and • the National Development Planning Commission 40 percent of CSIR membership is drawn from the private sector, a structure that is designed to foster collaboration across stakeholders In the early 2000s, CSIR created a commercial wing called CSIR+ as a limited liability company to commercialize publicly funded research Cocoa, cashew, and shea: Cocoa Research Institute of Ghana (CRIG) and COCOBOD CRIG: a New Products Unit was created in 1993 to diversify cocoa products and to help farmers generate extra income by processing their produce and by-products. CRIG’s mandate was expanded to include other tree crops that produced fats similar to cocoa butter, particularly cashews and shea nuts. CRIG’s research activities have led to successes in addressing diseases; improving productivity; a better understanding of cocoa fermentation and flavor chemistry; and the production of by-products from cocoa wastes, including pectin, alcohol and alcoholic beverages, animal feed, soap, and cosmetics. Works with COCOBOD to improve cocoa production & productivity In 2011, herbal clinics were piloted in selected government hospitals nationwide, and in September 2012 the practice of clinical herbal medicine was integrated into Ghana’s main healthcare delivery system by the Ministry of Health. The process that eventually led to the integration of herbal medicines into standard healthcare delivery involved the participation of public and private sector organizations and of research and financial institutions, and the drawing up of legislation that backed the activities of all stakeholders.
- Namibia is endowed with exceptional natural resources and a diverse range of species and habitats. It is one of the world’s few dry-land countries that has internationally recognized biodiversity hotspots. Biodiversity and the natural environment are critically important to Namibia and offer high potential for the country’s socio-economic development. Vision 2030, the Fifth National Development Plan, and the Second National Biodiversity Strategy and Action Plan 2013-2022 all have elements in them that demonstrate Namibia’s commitment to the sustainable use of natural resources, including biomass, for economic growth. In fact, the first Biodiversity Plan was recognized internationally as being one of the best such plans because it provided a strong foundation for the sustainable management and use of biodiversity in the country. The new one builds on this to tackle the threats and challenges to Namibia’s biodiversity so that it can contribute to poverty alleviation and equitable economic growth, particularly in rural areas. The National Science, Technology, and Innovation Policy (NSTIP) has also underlined the importance of knowledge development. Namibia is also working on creating a cohesive bioeconomy strategy. NCRST is working with FAO and other sector representatives to draft the strategy. They have established a multi-stakeholder working group called the Bioeconomy Multisectoral Working Group. The working group consists of 24 entities including 9 government ministries, some private companies, NGOs, public enterprises, and higher education institutions. A survey conducted by the working group identified agriculture, health, and natural resource management among the strategic focus areas and priorities for bioeconomy. Nationwide stakeholder engagement and workshops further cement the inclusive approach taken by the working group. The strategy is expected to be fully developed and implemented by the year 2026. Bioeconomy development is a multi-stakeholder affair as several other public, private, civil society and higher education institutions are involved directly or indirectly. In fact, CSOs play a particular active and important role in Namibia’s bioeconomy development, including the Namibia Nature Foundation (NNF) and The Namibian Chamber of Environment (NCE). Finally, there are several programmatic interventions that are noteworthy and covered in detail in the report. I would like to just highlight one here - In 2019, the Biodiversity Research Centre of the Namibia University of Science and Technology (NUST), in collaboration with the University of Oxford and the Namibian Chamber of Environment (NCE), launched a bioeconomy project based on the production of succulent plants. The project’s goal is to generate biomass by growing succulents on Namibia’s semi-arid and degraded lands. Succulent plants use far less water than most other plants and the biomass produced can be converted into a variety of products, ranging from fodder to proteins and renewable energy. Succulent production has the potential to be a game-changer for the Namibian economy through its introduction of an innovative type of bioeconomy, which could position Namibia as a leader in the diversification of dryland agriculture in the face of impending climate change
- South Africa is currently the only country in Africa that has an approved, dedicated and comprehensive bioeconomy strategy. South Africa’s bioeconomy strategy was published by the Department of Science and Technology (DST) in 2013 to foster the transition towards a knowledge-based bioeconomy. It identifies agriculture, health, and industry as the three key sectors that would benefit from a holistic bioeconomy strategy. South Africa has invested significantly in developing and institutionalizing a dynamic National System of Innovation (NSI) to implement its bioeconomy policy and vision. Selected institutions include (please see the others in our report) Bioinnovation Chief Directorate was created in 2013 to develop an innovation value chain within the nexus of indigenous knowledge and other knowledge systems. Created a pioneering approach called ‘Ubuntu-based Bio-Innovation’ which ensures that the benefits from indigenous knowledge reach the community level. CSIR: Funding balance between public sector and commercial and contract research. CSIR now receives about 30 percent of its total income from public sources and supplements the balance with contract research. one of the fundamental reasons for CSIR’s success is its excellent human scientific capability. On average, CSIR invests about ZAR150 million to ZAR200 million (US$ 10.6 million—US$ 14 million) per year in human capital development, which is about 0.7 percent of its total annual budget. Biomanufacturing Industry Development Centre: part of CSIR, to rapidly convert biotechnology-based R&D for industrial, veterinary, and human applications by small, medium, and micro enterprises (SMMEs) into market-ready products and services. From 2016-2021, BIDC advanced over 100 bioproducts in cosmetics, nutrition, and biotechnology along the technology realization chain. SANBI: cultivate human resources in investments in bioinformatics and computational biology infrastructure. National investments used to leverage funding from international sources including World Health Organization’s Tropical Disease Research (TDR) Program. The European Molecular Biology Network, and Centre National de la Recherche Scientifique (CNRS). Although training initially relied on international educators, there is now sufficient capacity in the country to meet its own needs. National investments in the construction of a national backbone of fiber cables with speeds up to 10 Gbps, and the purchase of additional capacity to international networks. The additional internet capacity makes it possible to transfer large datasets internationally. Between 2004 and 2007, the South African government allocated ZAR450 million (US$58 million) to support the implementation of the 2001 National Biotechnology Strategy (NBS). In 2013, this was followed by the creation of the Industry Innovation Partnership Fund (IIPF). The IIPF received an opening allocation of ZAR500 million (US$50 million) from the National Treasury to enhance the competitiveness of various sectors through R&D. Of this, ZAR90 million (US$9 million) was earmarked for CSIR for its work on biosciences, energy, and other related areas of research. In 2019/2020, ZAR187 million (US$12.3 million) was allocated to the Bioeconomy Division at Technology Innovation Agency. In short, the country has mobilized vast amounts of money for the development of its bioeconomy. And this has mobilised even more private sector funding: In 2017/2018, the private sector invested approximately ZAR7 billion (US$516 million) in R&D. One reason for this is a very attractive IP environment for private sector investments. To protect the value generated from publicly funded research, in 2008 South Africa approved the Intellectual Property Rights from Publicly Financed Research and Development Act (IPR Act). IPR Act also established Technology Transfer Offices to assist institutions engaged in technology transfer – attracts commercial partners South Africa has also implemented several agriculture, health, and biotechnology programs to drive forward bioeconomy interventions. The programs channel public sector funding but also provide platforms for stakeholders to collaborate through, thereby mobilizing resources and funding from other parts. In the interest of time, one programmatic example would be the Agricultural Bio-economy Innovation Partnership Programme facilitates, coordinates and funds multi-institutional, multi-stakeholder initiatives in bioproducts, processes and services within crop and animal value chains. The program has funded the commercialization of marula, honeybush, and Cape Aloe - indigenous and underutilized local crops with valuable medicinal and nutritional qualities. In this case, the program co-funded a ZAR15 million (US$1 million) contract for the technological development of marula, resulting in new markets, employment opportunities, and community benefits. Other strategic partnerships and flagship programs have been formed with the grains and oilseeds industries, the red meat industry, and the cotton industry. Plenty more in the report! South Africa’s successes also evident in its contribution to global management of COVID19 pandemic
- Over the last two decades, Uganda has fashioned a robust and forward-looking trajectory to capitalize on the potential of a bioeconomy. It has taken clear steps toward developing a bioeconomy, including drafting a comprehensive bioeconomy strategy. Uganda has become a hub of excellence on agricultural R&D; its National Agricultural Research Organization and universities have become a beacon for advancing food and agricultural biotechnology, in turn earning a position on the coveted African Higher Education Centers of Excellence Project by the World Bank. NARO has invested its funds in building a robust physical infrastructure base and in the development of highly skilled human resources, the combination of which has resulted in the emergence of a vast range of new production technologies, improved crop varieties, and products identified for patents, licenses, and commercialization. Over 2008-2018, research at NARO produced 801 technologies and innovations. Makerere University's (Food Technology and Business Incubation Centre) and Uganda Industrial Research Institute's incubators have been critical in providing a valuable launchpad for bio-enterprises. At Makerere, 20 to 30 firms are hosted at any one time, where they have on-going support to commercialize their improved products. FTBIC has generated more than 70 products and technologies with potential for commercialization, supported over 100 agro-processing enterprises (in-house and virtual), and trained over 2,000 MSME owners across the country who were mainly youth and women. The country has also drafted a comprehensive bioeconomy strategy and approved a green growth strategy which provides a significant platform to intensify the development of a bioeconomy. PHARMBIOTRAC (Pharm-Biotechnology and Traditional Medicine) at Mbarara University has been instrumental in rapidly building a critical mass of skilled human resources to promote the domestication and commercialization of traditional medicines and biopharmaceuticals.
- The Malabo Montpellier Panel has identified a set of actions summarized below that, if brought to scale, provide for a more holistic and comprehensive framework for policymakers and their advisors to develop and advance Africa's bioeconomy today and in the future: Identify gateway sectors through which to initiate the development of transition to a bioeconomy. The development of a bioeconomy can be initiated via selected ‘gateway’ sectors. These sectors can, for example, match those that form the focus of long-term national development plans, align with broader food security and resilience ambitions, provide clear innovation opportunities such as clean cooking fuels, the reduction of plastic pollution, bio-based materials for sustainable construction, and biopharmaceuticals, or which represent a comparative advantage or complementary approach. Working with a shortlist of sectors or challenges allows policymakers to model context-specific approaches prior to mainstreaming a bioeconomy strategy across other sectors. Strengthen links to R&D and markets for new bioproducts and biosolutions. Energizing the national innovation system necessitates investments in education, research, and development. STEM subjects, sustainability education, and indigenous knowledge are critical components of a curriculum that is designed to empower students and young people to participate meaningfully in the development of a bioeconomy. Closer collaboration between higher education, national research institutions, and the private sector can be facilitated via incubators, competitions, and challenges. Enhancing the financial sustainability of national research institutes with hybrid funding models that accommodate private sector services and international development partners can enhance bioeconomy research outcomes and impacts and can further strengthen collaboration across sectors and among stakeholders. Develop demand for bioproducts and biosolutions. Public awareness campaigns, public procurement, and industrialization and trade strategies can facilitate a bioeconomy market and can drive demand for bioproducts and biosolutions. At the same time, the introduction of recycling and biofuel mandates or of bans on single-use plastic products can provide low-hanging fruits with which to kick-start innovation in the bioeconomy. Regulate for sustainability incentives and to manage trade-offs. The use of geographical indications, standards, and certification schemes ensures the realization of maximum benefits and gains from developing a bioeconomy. Policymakers across Africa can customize a vast range of existing (voluntary) guidelines and frameworks; while carefully crafted intellectual property (IP) regimes can protect Africa’s domestic research outputs and indigenous knowledge while creating an attractive and innovation-driven environment for private sector investments in the bioeconomy. Set up independent national advisory boards to inform and guide the development of bioeconomies. Given the complexity and multisectoral nature of the bioeconomy, the central task of the bioeconomy advisory board or council—whose expertise would cover all aspects of the bioeconomy—would be to keep abreast of emerging developments in science, research and innovation and identify those that are relevant to national development