The 2008 World Development Report recognised that development through agricultural innovation would be central to reducing poverty in the poorest countries. However, contemporary notions of innovation and innovation capacity, characterised by networks or systems to mobilise knowledge and use it in new ways, not only call into question the main policy instrument for agricultural innovation — research — but also challenge accepted ways of working across the whole agricultural development architecture, particularly arrangements associated with technology transfer. To paraphrase a large debate, often agricultural development does not need agricultural extension services to transfer “modern” technology. Rather, assistance is needed to help farmers to better embed in flexible networks that link them both to market opportunities and sources of information on practices, standards and preferences and sources in inputs, including credit, so that they can make the most of these changing opportunities. This presentation outlines some points for policymakers to consider.

1. Innovation and Entrepreneurship for Poverty Reduction: Policy and Capacity Challenges in Agriculture Andy Hall LINK-United Nations University-MERIT Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

13. Case Studies Country Sector Niche with strong growth Export orientation Traditional sector in transformation Employment potential Bangla- desh Shrimp X X X Food processing X X X India Medicinal plants X X X X Vanilla X X Ghana Pineapple X X Cassava processing X X Colombia Cassava processing X X Cut flowers X X X Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

15. Evolving towards sustainable dynamics Pre-planned phase Foundation phase Emergence phase Pilot phase Stagnation phase Dynamic system of innovation phase Nascent phase Initiating interventions Experimental interventions Interventions to nurture success Remedial interventions Building on success interventions Maintenance interventions Market and other opportunities Rapidly changing threats and opportunities Orchestrated trajectory Opportunity-driven trajectory A continuously evolving subsector delivering economic growth and social development Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation

17. LINK is a specialist network of regional innovation policy studies hubs established by the United Nations University-MERIT (UNU-MERIT) and the Food and Agriculture Organization of the United Nations (FAO) to strengthen the interface between rural innovation studies, policy and practice and to promote North-South and South-South learning on rural innovation. Learning INnovation Knowledge Policy-relevant Resources for Rural Innovation