Connecting innovators and research: The evolution of R&D vouchers in Africa

In collaboration with science and innovation leaders, IDRC has been building a base of evidence and best practices to transform innovation systems in low- and middle-income countries for more than a decade. Part of that work has been focused on supporting small and medium-sized enterprises (SMEs) — the backbone of economic growth around the world.

Recent IDRC-supported research in Africa and Asia has shown that limited financing, weak linkages with public research organizations and a lack of technical capacity constrain the ability of enterprises to innovate and compete. Through collaboration with African impact investors like Villgro Africa and venture capitalists like Haske Ventures (featured here in an interview with CNN), IDRC has been supporting early-stage companies in several African countries to pilot and refine the use of research and development (R&D) impact vouchers to bridge systemic gaps between research and business. These investments are showing tangible results. 

Over the last seven years, the R&D impact vouchers have facilitated regulatory approval for an Ethiopian medical device manufacturer; led to the creation of new food products from traditional grains in West Africa; and helped a business insurance firm provide entrepreneurs with access to services they have historically been excluded from, to name just a few. They have also provided research institutions like universities with the opportunity to apply their expertise to a wider spectrum of real-world solutions.

Economic development and trade

SMEs gain affordable access to research expertise and facilities, helping them to develop new products, test ideas and grow their businesses. Beyond individual partnerships, the wider impact is evident: Yolélé, a West African food startup, is bringing traditional local grains to international markets through new food products. This creates economic opportunities for smallholder farmers while supporting climate-resilient agriculture. Investors across the region are increasingly recognizing the potential of African-led agrifood companies — especially those championing local ingredients and driven by diverse leadership — to drive Africa’s economic development.

Similarly, Logidoo, a logistics platform connecting African markets, used an R&D voucher to optimize its operations and test ways to make intra-African trade faster and more efficient, targeting a 20% reduction in delivery times and a 15% decrease in operational costs.

Social inclusion

The design of the voucher-funded research projects prioritizes women, youth and marginalized groups, ensuring that innovation ecosystems reflect diverse perspectives and needs. This inclusive approach helped SMEs design products and services that reach underserved markets, such as Insurance for All, which developed tailored insurance products for Kenya’s informal sector — a notoriously hard-to-reach population. This inclusive approach also supported enterprises like BenaCare, which delivers affordable home‑based clinical and supportive care to low‑income families in Kenya, reducing healthcare costs by more than 50% while expanding access for patients with chronic and life‑limiting illnesses.

Enriching knowledge systems

Researchers engage in market-relevant projects, using their knowledge to solve practical problems. Partnerships like The Pathology Network and Meru University of Science and Technology in Kenya show how this works in practice: by sharing a vast database of pathology images, the collaboration modernized medical education and created new opportunities for applied research.

Enhanced innovation landscape

The progression from pilot to scale shows the long-term potential for the R&D voucher approach. In today’s knowledge economy, these vouchers represent a crucial additional support to SMEs, beyond the more traditional financial and business development support provided by incubators and investors. By combining public, donor and private funding and embedding vouchers into investor portfolios and national innovation agencies, these initiatives aim to make R&D vouchers a permanent feature of Africa’s innovation system. This would reduce reliance on donor funding and strengthen economic resiliency.