For most development organisations and funders, innovation remains a sprawling collection of activities, often energetic, but largely uncoordinated. To a dregree, this has also been the case for Iceland's development co-operation. Iceland, a comparatively small but energetic player in the international development co-operation system, provided the equivalent of 0.28% (roughly 67 million Euro) of it 2021 gross national income towards Official Development Assistance.
They were once the central element in state-funded research, but now the research bodies need to redefine their role as partners in the innovation process, responding more efficiently to the needs of society and businesses. In agriculture, the concept of innovation was dominated in the past by linear knowledge transfer in the form of new technologies that were essentially generated by public research (research institutes or universities), transferred to the agricultural extension services, and hence to the farmers for adoption.
Innovation portfolio management enables not only commercial actors but also public sector organisations to systematically manage and prioritise innovation activities according to concurrent and diverse purposes and priorities. It is a core component of a comprehensive approach to innovation management and a condition to assess the social return of investment across an entire portfolio. The OECD Observatory of Public Sector Innovation (OPSI) has worked in this space for a number of years.