To cope and compete in this rapidly-changing world, organisations need to access and apply new knowledge. While explicit knowledge is important, what is often critical is an organisation’s ability to create, access, share and apply the tacit or un-codified knowledge that exists among its members, its network and the wider innovation system of which it is a part. This discussion paper explores the role of tacit knowledge in livestock sector innovation capacity though the case of Visakha Dairy, one of the most progressive producer-owned milk marketing companies in India.

The publication reviews forty years of development experience and concludes that donors and partner countries alike have tended to look at capacity development as mainly a technical process, or as a transfer of knowledge or institutions from North to South.

This paper was prepared to present at the Farmer First Revisited: 20 Years On conference at the Institute of Development Studies, University of Sussex, UK, December, 2007. Its focus is the challenge of strengthening agricultural innovation systems. The paper prefaces this discussion by reflecting on an apparent paradox. While agricultural innovation has never been better studied and understood, many of our ideas about innovation have failed to fundamentally change the institutional and policy setting of public and private investment intended to promote innovation for development.