Strategic food-water-centric clusters are concentrated hubs of innovators, industries, public actors and value-chain stakeholders. They are pivotal in scaling-up water-smart agriculture and resilient water systems. By co-locating stakeholders, these clusters enable rapid prototyping of water- saving technologies, shared infrastructure for circular water use, and trust-building partnerships to tackle shared challenges such as aquifer depletion and drought resilience. Cultivate food-water-centric strategic clustersEnabling action #3 Government-led clusters: food-water innovation at scale Public-sector leadership can integrate cross-sector resources to de-risk food-water innovation. For example, China’s Changshu Agri-Tech Park unites research institutes, agri-tech firms and farms to deploy smart water-saving irrigation across 104 hectares and a seed processing facility with an annual capacity of 10 million kilogrammes.51 Meanwhile Saudi Arabia’s NEOM Agri-Food Tech Accelerator connects innovators with corporates and investors. Both models prioritize proximity for real-time feedback and shared incentives such as market access to align environmental and economic goals. Private-sector clusters: sustainable stewardship in value chains Corporations are increasingly adopting cluster models to align suppliers with sustainability targets, leveraging scale to drive systemic change. For example, McDonald’s China Supply Chain Smart Industrial Park co-locates four partners, including Tyson Food, Grupo Bimbo, XH Supply Chain and Zidan Packaging. The park features 25,000 square metres of high-standard automated warehousing, enhancing logistical efficiency by 90% and exploring green practices. For example, Zidan Packaging has reduced sludge moisture content to below 80% by adopting low-temperature heat pump drying technology, cutting annual sludge production by 60% and reducing waste generation. This integration turns fragmented suppliers into a unified green value chain.52 The example of Qingshan Village in China also showcases how multi-stakeholder collaboration — involving NGOs, companies, farmers, villagers, local government and others — can restore watershed functions and build inclusive rural economies (see Box 3). Food-water- centric clusters are concentrated hubs of innovators, industries, public and value-chain stakeholders that are pivotal to water- smart agriculture and resilient water systems. From Scarcity to Solutions: Food-Water Innovation in Asia and the Middle East 37

From Scarcity to Solutions 2025