OECD/UN-Habitat Policy Brief on Cultivating Innovation: Activating Food-Tech Ecosystems in Intermediary Cities
SDG 2: Zero Hunger | SDG 9: Industry, Innovation, and Infrastructure | SDG 11: Sustainable Cities and Communities | SDG 13: Climate Action
Ministry of Agriculture & Farmers Welfare | NITI Aayog
The OECD/UN-Habitat Policy Brief (2026) titled ‘Activating food-tech ecosystems in intermediary cities for sustainable food security’ highlights the critical role of intermediary cities—urban areas that bridge rural production and larger urban centers—in achieving the dual global goals of net-zero emissions and zero hunger. With moderate or severe food insecurity rising to 28% globally in 2024, the report positions food-tech as a transformative solution to enhance food security, reduce environmental impacts, and adapt to climate challenges.
Key elements of the food-tech landscape and city-led innovation include:
The Food-Tech Spectrum: Innovation is classified into six areas: food science (e.g., plant-based meat), agtech (AI-monitored irrigation), IoT-food (smart packaging), delivery/retail, food demand apps, and waste management .
Global Hubs: China leads scientific output in food-tech (24%), followed by the EU (19%), the US (11%), and India (9%). Venture capital in the sector surged to $47 billion during 2022-2024.
City-Scale Specialization: Approximately 31% of the world’s food-tech start-ups are located in intermediary cities, a higher concentration than in other sectors.
Local Success Stories: Pilots in cities like Villa María, Argentina (dairy cluster) and Nakuru, Kenya (poultry brooding machines) demonstrate how local partnerships between industry and academia drive sustainable food production.
What are “intermediary cities” in the food system? They are small and medium-sized urban agglomerations—typically under 1 million inhabitants (3 million in India/China)—that connect local agricultural producers with national and global innovation hubs. Because of their physical proximity to production zones, they act as ideal “testing grounds” for deploying technological extension services, smart logistics, and efficient distribution channels that reduce post-harvest food waste.
Policy Relevance
For India, which holds a significant 9% share of global food-tech publications and has a food-tech investment share (11%) that doubles its overall venture capital share, this framework is vital for scaling rural-urban prosperity.
Strategic Impact for India:
Scaling Agtech: The emphasis on intermediary cities aligns with India’s focus on Tier II and III cities as emerging tech hubs, which can support the adoption of AI and IoT in local agriculture.
Reducing Digital Divides: The policy priority of closing digital infrastructure gaps is essential for India to ensure that smallholder farmers can access global food-tech networks.
Seed Sovereignty: The G7-OECD Joint Initiative on Seed Certification in Africa offers a model for India to strengthen its own quality infrastructure and seed exports to other emerging economies.
Institutional Capacity: Building the capacity of local urban bodies (ULBs) to manage food-tech initiatives is crucial for translating national programs like the IndiaAI Mission into local agricultural benefits.
Follow the full report here: Activating food-tech ecosystems in intermediary cities for sustainable food security