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RURAL INNOVATION Lessons 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). RURAL INNOVATION. -importance -meaning -evidence -innovation systems -lessons for intervention.

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rural innovation lessons for the state and industry

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.

rural innovation
RURAL INNOVATION
  • -importance
  • -meaning
  • -evidence
  • -innovation systems
  • -lessons for intervention

Raina, R.S.

why is rural innovation important today
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.

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

IDR 2004-2005

Raina, R.S.

what do we mean by rural innovation
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.

empirical evidence some case studies of rural innovation
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.

innovation systems framework for analysis of rural innovation
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.

operationalising the innovation systems framework
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.

lessons for the state for intervention and governance
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.

lessons for industry for investment and sustainable growth
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.

slide11
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.

so what
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.