This article applies a historical analysis of the progressive development and complexity of Malawi’s diary innovation system through phased emphasis on technological, organizational and institutional development to illustrate the centrality of smallholder dairy farmers in the innovation system. A social network analysis is applied to assess the influence of smallholder farmers on other actors. The existence and growth of the diary innovation system in Malawi is founded on the resilience of smallholder dairy farmers to produce milk.
Asian agriculture is faced with major new challenges as a result of globalisation, urbanisation and environmental problems such as climate change. To meet these challenges, Asian agriculture needs to become more knowledge intensive and innovation oriented. This article frames the new Asian challenge in terms of innovation theory, emphasising the importance of the co-evolution of technological and institutional change and linkages between actors in open, interactive innovation processes.