The International Fund for Agricultural Development (IFAD) financed the second Cordillera Highland Agricultural Resource Management Project (CHARMP2), in areas where poverty is most severe among indigenous peoples in the highlands of the Cordillera Region in northern Philippines. The aim is to reduce poverty and improve the livelihoods of indigenous peoples living in farming communities in the mountainous project area. The indigenous peoples consist of many tribes whose main economic activity is agriculture.

This book chapter reviews the literature on agricultural innovation, with the threefold goal of (1) sketching the evolution of systemic approaches to agricultural innovation and unravelling the different interpretations; (2) assessing key factors for innovation system performance and demonstrating the use of system thinking in the facilitation of processes of agricultural innovation by means of innovation brokers and reflexive process monitoring; and (3) formulating an agenda for future research.

This thematic note discusses the role of innovation brokers in bridging communication gaps between various actors of innovation systems. On the basis of recent experience in the Netherlands, it outlines the success of brokers in finding solutions adapted to the needs of farmers and industry, and thus their positive impact on innovation adoption. This section also examines some issues on how brokers function, particularly with regard to balancing interests, funding their activities, and the role of government.

The process of knowledge brokering in the agricultural sector, where it is generally called agricultural extension, has been studied since the 1950s. While agricultural extension initially employed research push models, it gradually moved towards research pull and collaborative research models. The current agricultural innovation systems perspective goes beyond seeing research as the main input to change and innovation, and recognises that innovation emerges from the complex interactions among multiple actors and is about fostering combined technical, social and institutional change.

The privatization of agricultural research and extension establishments worldwide has led to the development of a market for services designed to support agricultural innovation. However, due to market and systemic failures, both supply side and demand side parties in this market have experienced constraints in effecting transactions and establishing the necessary relationships to engage in demand-driven innovation processes.