Agriculture is crucial for the livelihood of millions of people worldwide and is one of the main drivers of deforestation, biodiversity loss and resource degradation. The contribution of agriculture to these environmental problems has been exacerbated by subsidies, which constitute the dominant public policy to support farmers. At the same time, other economic instruments introducing more sustainable land-use practices and incentivizing better environmental and social outcomes are already being applied worldwide.

The study was designed to answer the following three key questions:

(1) What types of investment instruments have been tested to support innovation in agri-food systems in the Global South, and how can these be categorized into a working typology?

(2) What is the evidence on how well different instruments have supported SAI's multiple objectives (e.g. social equality and environmental) at scale and what contextual and design factors affect their success or failure in achieving these objectives (e.g. type of value chain, who participates)?

What are the patterns of funding in agricultural innovation for the Global South1 ? Who are the key funders in this innovation and who are the key recipients? How doesthis funding split between various topics and value chains? What proportion of these funds support Sustainable Agricultural Intensification (SAI)? And how is SAI innovation funding split across different parts of the agriculture sector funding and innovation canvas?

Increasing investment and spending in agricultural innovation is not enough to meet Sustainable Development Goal (SDG) targets of ending poverty and hunger because the effectiveness of investments in low- and middle-income (LMI) countries is affected by the low quality of infrastructure and services provided, and by different norms and practices that create a considerable gap between financing known technical solutions and achieving the outcomes called for in the SDGs.