Agricultural research and innovation has been a major source of agricultural growth in developing countries. Unlike most research on agricultural research and innovation which concentrated on the role of government research institutes and the international agricultural research centers of the Consultative Group for International Agricultural Research, this paper focuses on private sector research and innovation. It measures private research and innovation in India where agribusiness is making major investments in research and producing innovations that are extremely important to farmers.

Agricultural research continues to be a good investment. The studies show that investments in international and national agricultural research account for almost all of the total factor productivity (TFP) growth in SSA and large shares of agricultural growth globally. The existing agricultural research institutions have, on average, delivered rates of return to public investment above 30-40%, which is much higher than the 5-10% available to other public investments or the 2-5% cost of borrowing public funds.

The evidence base on agri-food systems is growing exponentially. The CoSAI-commissioned study, Mining the Gaps, applied artificial intelligence to mine more than 1.2 million publications for data, creating a clearer picture of what research has been conducted on small-scale farming and post-production systems from 2000 to the present, and where evidence gaps exist.

A range of approaches and financial instruments have been used to stimulate and support innovation in agriculture and resolve interlocking constraints for uptake at scale. These include innovation platforms, results-based payments, value chain approaches, grants and prizes, incubators, participatory work with farmer networks, and many more.

Innovation for sustainable agricultural intensification (SAI) is challenging. Changing agricultural systems at scale normally means working with partners at different levels to make changes in policies and social institutions, along with technical practices. This study extracts lessons for practitioners and investors in innovation in SAI, based on concrete examples, to guide future investment.

A huge increase in investment in innovation for agricultural systems is critical to meet the Sustainable Development Goals and Paris Climate Agreement. Most of this increase needs to come from reorienting existing funding for innovation. However, understanding whether an investment will fully promote environmentally sustainable and equitable agri-food systems can be difficult.

Finance is a key lever for turning agriculture from a potential source of environmental harm and social inequity to a driver of conservation and social inclusiveness. Private and public sector funding for farmers to combat climate change and protect and restore nature (‘Paying for Nature’) is rapidly increasing. Yet this new funding may not reach its aims without drastically improving farm-level reward mechanisms.

By 2050, it is projected that nearly 70% of the global population will live in urban areas – up from 55% today. How can towns and cities be fed sustainably? And what does this urban growth mean for innovation priorities? A study of urban and peri-urban agriculture (UPA), commissioned by CoSAI, addressed these questions.