Innovation Systems to Adapt to Climate Change: Lessons from the Kenyan Coffee and Dairy Sectors

Abstract

Climate change is one of the most widespread anthropogenic challenges affecting agriculture and agricultural production, where its impacts on economic growth in general are still issues in debate. An adjustment to the actual or expected changes in the agricultural sector using different innovative adaptation strategies has to be among priorities in policy decisions. Research on sectoral systems of innovation, however, has paid little attention to adaptation to climate change, notably in agricultural trade and agribusiness. This chapter, therefore, explores the role of systems of innovation in adapting to climate change, which have methodological, conceptual, and policy implications. It focuses on two case studies in Kenyan agriculture, i.e., the coffee and dairy sectors, which differ in terms of stakeholder and institutional setups. In the coffee sector, the actors' system is highly centralized, and the systems of innovation is oriented toward technology development. In contrast, the dairy sector consists of a diversity of actors, and its systems of innovation is based on institutional building and marketing. The capacity to innovate and adapt, therefore, depends on institutional arrangements in addition to technology development, suggesting that the dairy sector in Kenya could be an example for the coffee sector.