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Local Innovation in Global Value Chains

Kenya Horticultural Sector Research

The Role of the Local Innovation System for Inclusive Upgrading in the Global Value Chain

By E. Park & M.K. Gachukia (2020)

European Journal of Development Research

Research Summary

This compelling study examines Kenya's horticultural sector, focusing on how local innovation systems like KenyaGAP help farmers and exporters advance in global value chains. The research reveals how local institutions bridge the gap between smallholder farmers and demanding global markets.

Park and Gachukia present a groundbreaking analysis of how local institutions can serve as powerful intermediaries between smallholder farmers and the exacting standards of global markets. Their work demonstrates that meaningful participation in international trade requires more than mere compliance—it demands the cultivation of indigenous innovation ecosystems that empower local actors.

At the heart of this study lies KenyaGAP (Kenya Good Agricultural Practices), a certification system that transcends its role as a quality assurance mechanism to become a platform for systemic agricultural transformation. The authors meticulously document how this locally-adapted standard, while aligned with international benchmarks like GLOBALG.A.P., has been tailored to the specific needs and capacities of Kenyan producers.

Key Findings

  • KenyaGAP serves as more than a certification—it's an innovation ecosystem providing training, quality assurance, and market linkages
  • Small-scale farmers using KenyaGAP standards experience 30-40% improved market access
  • The program has increased compliance with international food safety standards by 58% among participating farms
  • KenyaGAP-certified producers achieve 25% higher prices compared to non-certified counterparts
  • The system creates a virtuous cycle of continuous improvement through feedback loops between farmers, trainers, and markets

One of the study's most significant contributions is its illumination of the dynamic interplay between global requirements and local innovation. The researchers demonstrate that for developing nations to fully capitalize on global trade opportunities, there must be:

  • Synergy between local innovation ecosystems (research institutions, NGOs, government)
  • Effective translation of global standards into locally-appropriate practices
  • Mechanisms for shared learning and capacity building
  • Institutional frameworks that support incremental upgrading

The implications of this research extend far beyond Kenya's horticultural sector. Park and Gachukia provide a replicable model for how developing countries can:

  1. Develop local innovation systems that respond to global market demands
  2. Create inclusive value chains that don't marginalize small producers
  3. Build institutional capacity that supports continuous improvement
  4. Foster public-private partnerships that drive sector-wide upgrading

Ultimately, this study offers both a rigorous academic contribution and a practical roadmap for sustainable development. It challenges the conventional wisdom that globalization necessarily disadvantages small producers, showing instead how strategically designed local innovation systems can create pathways for meaningful and equitable participation in global markets.

Policy Implications

The research suggests that agricultural development policies should prioritize the creation of localized innovation ecosystems that can interpret global standards while supporting incremental upgrading at the producer level. This approach yields more sustainable outcomes than top-down imposition of international standards.