RURAL INNOVATION Lessons for the State and Industry

1. 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) Raina, R.S.

2. RURAL INNOVATION • -importance • -meaning • -evidence • -innovation systems • -lessons for intervention Raina, R.S.

3. 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 Raina, R.S.

4. Rural Population % - opportunities to move or create economic opportunities for rural people IDR 2004-2005 Raina, R.S.

5. 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. Raina, R.S.

6. 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) Raina, R.S.

7. 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) Raina, R.S.

8. 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.--) Raina, R.S.

9. 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 Raina, R.S.

10. 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, Raina, R.S.

11. 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 Raina, R.S.

12. 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 Raina, R.S.