Inclusive innovation for the development ofcompetitive advantages in the value chain of potato in the Andean zone

Abstract

Despite of the increasing use of innovation systems and the development approaches based on value chains to stimulate the growth of rural incomes, poverty reduction and greater gender equality, there is little systematic knowledge about how to operationalise the value chain approaches in different contexts, and how to extend their benefits. This article considers the development of the value chain
in competitive terms, as a type of intervention that promotes the development of competitive advantages and contributes to the reduction of poverty, by improving the links between small farmers, merchants, processors and consumers in a value chain. Participatory Market Chain Approach (PMCA) is described as a flexible approach involving value chain actors, researchers and other service providers in a collective process that explores the potential business opportunities for the benefit of small farmers and other actors in the chain. This approach was initially developed and applied in Peru, and then through knowledge exchange, validated by the International Potato Center (CIP) and local organizations in Bolivia and Ecuador in the Andean region. Experiences about the implementation and adjustment of the approach in these contexts are described here as well as the
conditions that have allowed the promotion of innovations as a basis to develop competitive advantages. The document concludes with lessons on the implementation that contributes to improve the design of the interventions and the promotion of value chain approaches in different contexts.