Research and analysis of agricultural innovation processes and policies over the last 20 years has made a major contribution to scholarship on and the understanding of the nature of innovation. To an important, but much lesser degree this has also led to re-framing practice at the research-innovation interface. Innovation studies (for want of a better word), like many branches of science, finds that it needs to deliver solutions across the full spectrum of discovery (concepts and theories) to application in both policy and practice domains.
This paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurately in order to offer effective insurance cover and ensure financial sustainability of the insurance scheme. We explore farmers' perceptions on drought and spatial climate variability and draw conclusions concerning basis risk with regards to the proposed methodology.
Traditional approaches to innovation systems policymaking and governance often focus exclusively on the central provision of services, regulations, fiscal measures, and subsidies.