30/3/07 Raina, R.S.

RURAL INNOVATIONLessons for the State and Industry

Seminar on

Trade, Technology and the Impact of Globalization New Dimensions in Indo-Canadian Relations

(30-31 March 2007, IIM Bangalore)

30/3/07 Raina, R.S.

RURAL INNOVATION

-importance -meaning -evidence -innovation systems -lessons for intervention

30/3/07 Raina, R.S.

Why is rural innovation important today? Developing countries (1987-2001)

– doubled share in world trade- increased per capita income by 2/3rd

Indian agriculture (1951-2001)- cultivators decreasing share in rrl ppl- 86% of Indian farms – small/marginal- agricultural labour increasing share - per capita Agrl GDP for rural ppl decreasing steadily- the State-peasantry – stifling interlocking

Rural poverty (2020 – 2030 ----- - Percentage decline marginal– absolute poverty likely to

increase (ADB, 2005; WB, 2006)- - Rural – urban disparities – worst in South Asia – likely to

worsen- - Enhancing capacities -learn and change in rural areas -

crucial

30/3/07 Raina, R.S.

Rural Population % - opportunities to move or create economic opportunities for rural people

IDR 2004-2005

30/3/07 Raina, R.S.

What do we mean by “Rural Innovation”? It is processes that take place when

knowledge, technology or information is made available and is put to use in socially progressive and economically productive ways by a group of linked actors (organizations/individuals) in rural areas.

It demands the capacity to access, adapt and apply knowledge to specific contexts, and to learn and evolve continuously.

30/3/07 Raina, R.S.

Empirical evidence – some case studies of rural innovation Packaging-transport-tomatoes- Himachal Energy efficient devices – Kerala, Karnataka Systems of Rice Intensification- A.P./T.N. Spirulina- T.N. Pomegranate, NRM – Solapur Lac – Jabalpur Mahua – Jabalpur, Bhopal Pineapple processing - Gajapati Small scale fisheries – Kerala Vanilla – Kerala Traditional/herbal health care – Karnataka Mango –processing, export- A.P. Textiles – Pochampalli – A.P. Textiles – traditional weaving- Agor – Assam Fodder systems – M.P.,A.P. Gujarat………+ livestock, horticulture, traditional health care, etc. in East Africa(action research, facilitated capacity development, workshops, seminars, institutional analysis, etc)

30/3/07 Raina, R.S.

Innovation systems framework – for analysis of rural innovation Process of change in rural areas

(not artifacts/technologies)

Involves several sources of knowledge/skills (technology is only one among several…)

Continuous cycles of learning and change(transfer of technology is a myth)

Enabling institutional arrangements(organizations/individuals are not enough)

30/3/07 Raina, R.S.

Operationalising the Innovation Systems framework – --- from analysis to intervention develop sector-based strategies/ interactive policy

research (Mode II) identify missing domains – and actors

(organizations/individuals) in each domain conduct stakeholder dialogues – identify points of

entry/intervention, M&E mechanisms, nodes of learning and change,

assess actor linkages, investment options. (for example for donor agencies (DFID, World Bank) policy

organizations (Planning Commission, DST) specific programmes (CPHP, Schemes of the Govt.), research organizations/consortium (CIMMYT-IRRI (RWC), CGIAR, ILRI) etc.--)

30/3/07 Raina, R.S.

Lessons for the State – for intervention and governance Institutional change – or changes in ways of

working/rules/norms in major actors--Stimulate interactions, communication and convergence among different

Ministries, Departments within, public-private-civil society actors, farmers/farm labour groups, etc.

--Rural/agricultural technology must be nested within wider livelihood options and innovation systems with proven benefits to the rural poor

Policy to work pro-actively with high potential actors

--CSOs --Financial/other intermediary organizations --Private and other local capital --Networks

30/3/07 Raina, R.S.

Lessons for Industry – for investment and sustainable growth Investment – in innovation capacities of producers,

producer organizations, intermediaries--Intermediary domains (banks, local traders, extension services, other service providers, --) are crucial sources of information and can reduce transaction costs

--Enabling scale effects in agriculture – especially through aggregation at the farm level, creation of value addition opportunities in villages/nodes,

--Improving quality, safety and overall product market performance

Pro-poor and rural innovation is not anti-private profits –--Joint financing and governing mechanisms with local Governments – enhancing

trust & transparency,

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CPR CRISP

Critical mass of ‘systems perspectives’ HR Curricula – management of rural innovation Mid-career courses on institutional learning

and change Learning platforms – industry specific or

cross-sectoral – developing country focus

30/3/07 Raina, R.S.

So what ?

Lessons

1. Social reproduction of capacities for rural innovation is necessary

2. Profitable investment options exist and are possible

Willingness to learn and change - MISSING