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Performance Goal 1.1.2: Science, Technology, and Innovation Cooperation

Performance Goal Statement: By September 30, 2017, expand by 50 percent the number of senior-level science and technology innovation dialogues with key foreign governments using the eight 2013 dialogues as the baseline, and enable one percent of U.S. Global Development Lab innovations/technologies to reach more than five million people and 10 percent to reach more than one million people, using 2013 as the baseline.

Performance Goal Overview

The United States has tremendous expertise and comparative advantage in harnessing the power of science, technology, innovation, and entrepreneurship through world-class universities and research institutions.

Moreover, Science, Technology, Engineering, and Mathematics companies have promoted a culture of

innovation and entrepreneurship that has created new economic sectors and opportunities for growth. Science and technology, coupled with greater connectivity and partnerships, can change the reality of what is possible.

Today the United States has new tools and approaches to achieve progress that was simply not imaginable in the past. Breakthroughs pioneered for the developing world, such as low-cost health diagnostics, can benefit the United States. Over the next forty years, the developing world is expected to be the largest source of product and services growth, which will directly translate to economic growth both in the U.S. and globally.

The Department of State and USAID are integrating new approaches to support innovation and scientific collaboration. These initiatives, such as the U.S. Global Development Lab, are partly in response to

overwhelming requests from many countries to collaborate on science, technology, and innovation with the United States, which enhances the United States’ ability to influence key policies, regulations, and investments of these countries. The Department and USAID also recognize that engaging science and technology will result in more efficacious, faster, cheaper, and sustainable solutions to key global challenges, and will allow the U.S. to better address problems such as food security, energy demands, environmental change, and the spread of infectious diseases.

The initiatives encompass expanding international science and technology partnerships; developing and scaling transformational innovations and technologies; collaborating with universities, private sector businesses, non-governmental organizations, and entrepreneurs; crowdsourcing ideas from around the world; facilitating fair access for U.S. companies and others with cutting edge technology to emerging markets; and fostering the mutually beneficial exchange of goods, services, and ideas while protecting intellectual property rights.

The United States can utilize its unrivaled global science and technology leadership to further the development of foreign partners’ domestic innovation ecosystems to promote knowledge-based economies and support sustainable, inclusive growth. The United States can lead the international community in harnessing the global spread of science and technology and the ability to translate those advances into innovations that improve the efficacy, speed, cost, and sustainability of solutions. Open data, good governance, and partnerships are key to achieving these objectives.

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As the world’s challenges are increasingly shared in a globalized world, these interventions can have a powerful impact on U.S. growth and global prosperity. By helping other countries develop their innovation ecosystems, we are developing potential markets and infrastructures that can benefit the U.S., our entrepreneurs and businesses, while increasing our access to the best ideas, wherever they are, and improving their prospects for success.

Performance Goal Progress Update

Progress towards this performance goal is measured by two dimensions. The first, the number of dialogues headed by an Office Director or more senior official with foreign governments on science and technology innovation, captures how such dialogues increase the opportunities for significant multi-year collaborations between U.S. and foreign institutions. The second, the percent of U.S. Global Development Lab innovations that are reaching millions of people, captures the reach and potential impact of transformative solutions to global challenges and opportunities.

Key Indicator: Number of senior-level science and technology innovation dialogues with key foreign governments

FY 2013

Baseline FY 2014 FY 2015 FY 2016 FY 2017

Target N/A 9 10 13 14

Result 8 10 12

Indicator Analysis

The Department of State’s Bureau of Oceans and International Environmental and Scientific Affairs (OES) notes that the Department exceeded its targets in FY 2015 as a result of increased demand from international partners. The Department anticipates that this positive trend will continue as foreign governments look to better leverage investments in research and development. Targets for FY 2016 and FY 2017 have been increased accordingly. In the FY 2015 Annual Performance Plan, the FY 2016 target was 11 and the FY 2017 target was 12; they have been changed to 13 and 14, respectively.

Indicator Methodology

Data is obtained through an annual review of meetings conducted by senior leadership as outlined in the update section. It should be noted that the recent placement of a Department employee in Silicon Valley may

dramatically increase senior leader engagement in 2016. OES and the Office of the Science and Technology Advisor to the Secretary (E/STAS) will coordinate with the appropriate Bureaus and Offices to capture their data.

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Key Indicator: Percent of U.S. Global Development Lab innovations/technologies that reach more than 1 million people

FY 2014 FY 2015 FY 2016 FY 2017

Target 0% 10% 10% 10%

Result 0% 1%

Indicator Analysis

The U.S. Global Development Lab (the Lab)’s innovation programming aims to increase the adoption of high-impact development solutions that have proven high-impact, widespread adoption, and sustainable financing. The Lab works in close collaboration with Bureaus and Missions across USAID, as well as public and private sector partners, to source and accelerate groundbreaking solutions to the world’s biggest challenges, like maternal and child health, education, and access to water and electricity. The Lab uses two approaches to identify promising innovations, which are then rigorously tested, iterated, and mainstreamed for global impact. Open innovation approaches, like the Development Innovation Ventures (DIV) program, are open to entrepreneurs and solvers from nearly any organization for any sector in any country where USAID operates. With directed innovation approaches, Lab and Agency partners use tools like Grand Challenges for Development (GCD) and Prizes to find solutions to specific challenges, like improving childhood literacy, providing energy for agriculture, and

addressing the Ebola epidemic. The Lab also engages with U.S. and global academic communities to harness the ingenuity and passion of university students, researchers, and faculty to find and apply new science and

technology-based solutions to the world’s most challenging development problems.

Through these and other innovation programs, the Lab has proven successful at sourcing promising solutions from new and local solvers who operate in the markets where the problem exists. In FY 2015, the Lab supported over 400 innovative solutions, three of which are improving the lives of over one million people. One of these, the chlorine dispenser program, is scaling up a proven, low cost approach to improve access to safe drinking water for five million people across East Africa, preventing three million cases of diarrhea and 3,000 child deaths at just 2 percent of the traditional cost. Although the Lab did not reach the indicator target this year,

throughout FY 2015 USAID has been updating the strategic approach and refocusing the portfolio towards the scale of impacts such as these that underpin the foundation of the Lab.

While the Lab has succeeded in bringing in new ideas and finding promising innovations with evidence to support their potential for impact on development, significant hurdles remain to large scale adoption of these innovations. In FY 2016, the Lab is adapting program emphasis to better target and support high-impact solutions. USAID is focusing efforts on the critical elements of high-impact solutions, including strong evidence of impact, significant beneficiary reach, and increasing sustainable, non-donor financing. The Agency is working with innovators to better address the challenges they face, including capacity, capital and market barriers to adoption. USAID will be focusing support specifically on the top twenty-five solutions, working to assess what is needed to accelerate through the pipeline and get to the next level of impact.

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There are a number of promising innovations in the pipeline with the potential to improve the lives of millions around the world. Twenty of these innovative solutions are currently reaching 100,000 or more beneficiaries, and five of those are reaching 500,000 or more beneficiaries. As the Lab works closely with public and private sector partners to learn from what works and adapt our approaches to sourcing and scaling innovations, the expectation to reach the five year target of 10 percent.

Indicator Methodology

Beneficiary reach, among other key criteria of high-impact innovations, is collected by Lab teams working on innovation programming. For each program that contributes to this indicator, the Lab has rigorous monitoring, evaluation and learning systems in place to track the outcomes of innovation support and ensure our programs are evidence-based and iterative. The Lab also builds staged financing into innovation programs; thus support increases only after solutions are tested and demonstrate effectiveness.

Key Indicator: Percent of U.S. Global Development Lab innovations/technologies that reach more than 5 million people

FY 2014 FY 2015 FY 2016 FY 2017

Target 1% 1% 1% 1%

Result 0% 0%

Indicator Analysis

Progress towards this indicator is similar to the above. Lab innovation programs have proven successful at sourcing promising solutions from around the world and are now working with partners to enhance support to accelerate these innovations through the pipeline to impact at scale. This past year, the Lab led efforts to accelerate access to digital financial services, which harness the power of technology to increase financial inclusion and lift populations out of extreme poverty. By catalyzing global alliances, supporting programs in country, and improving the way we do business, USAID is leading industry-wide change to scale this proven solution.

USAID, through the Lab, supports greater access to financial services by signaling demand for electronic

payment (“e-payment”) systems to the market and by encouraging policies and regulations that level the playing field. For example, this past year, the Lab launched a partnership with the Government of India and over twenty public, private, and multilateral actors to expand merchant acceptance networks for a new Government issued account card targeting over 100 million poor customers. This effort is tied to the Government of India’s ambitious effort to provide financial account access to every Indian household, largely through digital means.

USAID also made e-payments the method of payment implementing partners are directed to use wherever possible and reconfirms commitment to the Better than Cash Alliance (BTCA), which advocates for, and facilitates, the transition from cash to e-payments for governments, the private sector, and the development

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community. Initial results show that this shift to more efficient and secure processes is already saving thousands of personnel hours and program dollars that can be re-invested into development assistance.

The Lab is working closely with public and private sector partners to catalyze similar industry-wide changes in other sectors to accelerate innovative solutions that improve the lives of millions. As the Agency learns from what works and adapts approaches to sourcing and scaling innovations, the expectation is to reach the five year target of one percent.

Indicator Methodology

Beneficiary reach, among other key criteria of high-impact innovations, is collected by Lab teams working on innovation programming. For each program that contributes to this indicator, the Lab has rigorous monitoring, evaluation and learning systems in place to track the outcomes of innovation support and ensure programs are evidence-based and iterative. The Lab also builds staged financing into innovation programs, and thus supports increases only after solutions are tested and demonstrate effectiveness.

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Strategic Goal 1: Strengthen America’s Economic Reach And Positive Economic Impact

Strategic Objective 1.2: Promote Inclusive Economic Growth, Reduce Extreme

Outline

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