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.

Rising global demand for vegetable oil during the last few decades has led to a drastic increase in the land area under oil palm. Especially in South- east Asia, the oil palm boom has contributed to economic growth, but it has also spurred criticism about negative environmental and social effects. Here, we discuss palm oil production and consumption trends and review environmental, economic, and social consequences in different parts of the world. The oil palm expansion has contributed to tropical deforestation and associated losses in biodiversity and ecosystem functions.

Oil palm (Elaeis guineensis) has become the most important oil crop throughout the world. The growing palm oil production was mainly based on the expansion of cultivated area into forest areas, causing serious environmental and social concerns. Increasing yields on existing plantations is a potential pathway to reduce the undesired ecological impacts of oil palm agriculture while enhancing its social benefits. Although oil palm production is still dominated by large private estates, smallholder farmers are increasingly engaging in its cultivation.

The publication reviews forty years of development experience and concludes that donors and partner countries alike have tended to look at capacity development as mainly a technical process, or as a transfer of knowledge or institutions from North to South.