This document discusses innovation in livestock systems to enhance the livelihoods of livestock-dependent poor people. It defines innovation and how ILRI adds value through projects that situate work in broader contexts. It examines changing livestock systems and challenges, the need for enhanced ability to innovate through knowledge use, and characterization of livestock innovation contexts. The document also discusses policy, institutional environments, actors and arrangements that drive innovation, as well as principles, partnerships, management, communication, sustainability, intensification challenges, and ILRI's current portfolio and outcomes.