This document discusses integrating an innovation systems perspective and value chains approach for development. It defines key concepts like innovation systems, value chains, and the impact pathway. It argues that considering both innovation systems and value chains allows for a more comprehensive understanding of the actors, knowledge systems, and activities involved in commodity development. Looking at innovation possibilities across an entire value chain, from input supply to production to marketing, can help identify intervention points to enhance productivity, profitability and development outcomes.

1. Innovation Systems Perspective and Value Chains Approach for Development: Concepts and Principles National dairy forum, Addis Ababa, Ethiopia, 23-24 November 2010 Berhanu Gebremedhin, ILRI/IPMS

3. Resources (Staff time, finance, equipment/materials, transportation etc) Activities (Problem identification, research design, implementation, evaluation) Outputs (technologies, institutional/ Organizational/policy recommendations, publications, briefs etc) Outcomes (Research outputs are taken up/adopted by intended users) Impact (economic, social and environ- mental changes ) The Impact pathway

9. Production Post-harvest handling Processing Retailing Consumption Trading Trading Market information and intelligence Financial services Transportation Communications Govt. policy regulation Tech. & business training & assistance Production input supply & Business Support Services Research The Value Chain Transport Input Supply

12. Integration of Value chain and Innovation system perspective Target Group Identification Broad understanding of the Livelihood of the Target Groups (Unit of analysis is the HH) Prioritizing enterprises within the Target Group Identifying and describing the Value chain of priority enterprises National Innovation System- Generic (dealing with science and technology at National Level) Intervention Based Innovation System (Based on the priority problem) Agricultural Innovation System-Generic (dealing with Agricultural S & T) Commodity based Innovation System (dealing with the entire value chain of an enterprise) Prioritizing the key component of the Value chain-1 st level priority setting Prioritizing problems within the priority key component identified Analysis of the priority problems identified Identifying potential Intervention Identifying feasible Intervention Planning, Implementation and Evaluation Screening (Ex-ante assessment) Dissemination, Utilization by end users, and scaling out

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