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

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.