This paper identifies market failures that limit agricultural R&D for Africa and other resource-poor environments, and proposes a way to complement existing institutions with cash prizes for the dissemination of successful new technologies adopted by low-income farmers. The proposed prize institution would use agronomic experiments and farm surveys to document the value of innovations after their initial diffusion, and offer payments in proportion to estimated social benefits in target regions.
The agricultural innovation system can be strengthened by increasing the learning capacity of research and field organisations. Participatory methods were developed to study three dimensions of the capacity of such organisations in Nicaragua to access and analyse information, highly correlated to learning capacity – the individual routines of their professionals, the formal procedures of the organisation and the organisation's use of collaborative projects to strengthen core operations.