Agricultural innovation is an essential component in achieving the SDG and accelerating the transition to more sustainable and resilient farming systems across the world. Innovations generally emerge from collective intelligence and action, which requires effective agricultural innovation systems (AIS). An AIS perspective has been widely adopted, but the analysis of AIS, especially at country level, remains a challenge. The need for and potential of a diagnostic tool for AIS analysis is currently receiving attention in the global agricultural policy debate.

The Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project supports the efforts of the GoE to transform the smallholder agriculture sector to a more market-oriented sector. LIVES uses a value chain framework to develop targeted livestock and irrigated agriculture commodities through integrated technical and institutional innovations. Such a framework recognizes that value chain actors add value at different stages of the value chain and that individuals and organizations provide inputs and services to the value chain actors.

The paper, prepared for the "High Level Policy Dialogue on Investment in Agricultural Research for Sustainable Development in Asia and the Pacific" (Bangkok Thailand; 8-9 December 2015), presents the Common Framework on Capacity Development for Agricultural Innovation Systems (CDAIS).The framework is a core component of the Action Plan of the TAP, a G20 Initiative, aiming to increase coherence and effectiveness of capacity development for agricultural innovation that lead to sustainable change and impact at scale.

Ethiopian needs to achieve accelerated agricultural development along a sustainable commercialization path to alleviate poverty and ensure overall national development. In this regard, sustainable commercial of smallholder dairying provides a viable and growing opportunity; with deliberate, appropriate and sustained policy support. A recent empirical analysis concludes however, that Ethiopian smallholder dairy sub-sector has not been able to take-off despite decades of development interventions.