According to DIV officials, the program does not outline specific problems  to be solved or propose specific solutions but is intentionally open-ended,  funding grants on the basis of three core principles:
Evidence: rigorous evaluation of what works and what does not,  scaling up only those solutions proven to produce demonstrable  impact
Cost-effectiveness: potential to deliver greater development impacts  per dollar than traditional development assistance
Potential to scale up: a plan to deliver and maintain widespread  impact by increasing the geographic scope of operations and reaching  financial sustainability beyond DIV’s support through private or public  funding  Managed at USAID headquarters, DIV takes a venture capital approach  to investing in innovations, by awarding grants through a three-stage  funding model. DIV Has Funded Innovation Projects across Nine Sectors and Has Concentrated Funding Largely in Two Countries and among Four Grantees

In fiscal years 2010 through 2015, DIV obligated approximately $72.5  million for innovation projects across nine sectors, including energy,  economic growth, health, and education. 1). Lack of DIV Performance Targets Makes It Difficult to Determine Progress

DIV has developed and is collecting data for several program-level  performance measures, which show some positive outcomes, but has not  established specific targets for these measures, making it difficult to  assess DIV’s progress. For example, applications that DIV funded in India generally  met the program’s evidence requirements, such as including evaluation  plans. DIV also has recently taken action to ensure that the final  reports and evaluations of its projects are publicly disseminated, as  generally required by USAID policy. DIV Grantees in India Provided Final Reports and Evaluations That Generally Met DIV’s Requirements

Based on our review of DIV documents, we found that most DIV grantees  in India provided final reports and evaluations that met DIV’s  requirements. DIV’s Limited Collaboration with Similar Innovation Programs in India Has Contributed to Missed Opportunities to Share Information and Leverage Resources

DIV and other U.S.-funded innovation programs in India support similar  objectives and beneficiaries, and in several cases these programs have  funded the same types of innovations. Without such an  approach, USAID may not be capitalizing on opportunities to gain  efficiencies and maximize the impact of its innovation programs. According to these officials, there is a vast need for innovations, such as  clean energy and off-grid electricity, which improve the lives of the poor in  that country. Although USAID’s mission in India prioritized  innovation and modeled one of its programs after DIV, DIV and the  mission collaborated to a limited extent during the implementation of  DIV’s projects. Establish performance targets that will allow periodic assessment of  DIV’s progress toward achieving its goal. 2. Establish a joint approach to collaboration reflecting agreement with  the USAID mission in India and with other related U.S. agency  programs in India, and consider where such a joint approach would be  beneficial in other countries. USAID also discussed steps it is  taking to respond to the recommendations. Appendix I: Objectives, Scope, and Methodology

We were asked to review the U.S. Agency for International  Development’s (USAID) Development Innovation Ventures (DIV)  program. In this report, we examine the DIV program’s (1) distribution of  funding and (2) efforts to measure progress toward achieving its goals,  and for DIV’s activities in India, we examine (3) the extent to which DIV  uses evidence to make funding decisions and assess results and (4)  DIV’s collaboration with other similar U.S. development assistance  innovation programs. To examine the distribution of DIV funding, we obtained and analyzed  funding data for projects from fiscal years 2010 to 2015. Based on our analysis of USAID project data, we selected India as a  nongeneralizable case study for two objectives.
Why GAO Did This Study

USAID established the DIV program in 2010 with a goal of creating a portfolio of innovations that contribute to reducing global poverty. Borrowing from the venture capital model, DIV seeks to identify and test innovative development solutions based on three core principles: rigorous evidence, cost-effectiveness, and potential to scale up. As of 2014, India was the largest recipient of DIV funding, representing approximately one-third of the program's portfolio.
In this report, GAO examines the DIV program's (1) distribution of funding and (2) efforts to measure progress toward achieving its goals, and for DIV's activities in India, GAO examines (3) the extent to which DIV uses evidence to make funding decisions and assess results and (4) DIV's collaboration with similar U.S. development assistance innovation programs. GAO reviewed and analyzed DIV documents and data for fiscal year 2010 to 2015, and interviewed agency officials and grant recipients. GAO selected India as a nongeneralizable case study and conducted fieldwork in that country.

What GAO Found

From fiscal years 2010 to 2015, the U.S. Agency for International Development's (USAID) Development Innovation Ventures (DIV) program obligated approximately $72.5 million for innovation projects to reduce poverty across a range of sectors, including energy, health, and education. In India, for example, DIV funded intensive learning camps that group children by reading and math abilities rather than by grade level, and a solar micro-grid service providing lighting to off-grid customers for approximately $0.27 per week. While DIV has a global focus and is open to applications regardless of source, approximately 52 percent of its funding is concentrated in two countries, India and Kenya, and 40 percent of its funding is concentrated with four grantees.
DIV is collecting data for several program-level performance measures, which show some positive outcomes, but has not established targets for these measures, making it difficult to assess DIV's progress. GAO's review of DIV's draft framework indicates that it does not include performance targets.
DIV has applied evidence-based requirements for awarding grants and assessing results, emphasizing rigorous evaluations. Specifically, applications that DIV funded in India have generally met the program's evidence requirements, such as including evaluation plans. DIV grantees in India have also provided final reports and evaluations that generally met DIV's requirements. In addition, DIV recently has taken action to ensure that the final reports and evaluations of its projects are publicly disseminated, as generally required by USAID policy.
DIV's limited collaboration with similar U.S.-funded innovation programs in India has contributed to missed opportunities to share information and leverage resources. DIV and several other U.S.-funded programs in India support similar objectives and beneficiaries. For example, the strategy of the USAID mission in India focuses, in part, on innovation and modeled its Millennium Alliance program after DIV. Such programs have funded some similar innovations, such as “clean” cook stoves and low-cost eyewear. Although DIV has begun implementing a plan to improve collaboration, it does not yet reflect a joint approach among similar programs, including those of other agencies. Without such an approach, DIV may not be capitalizing on opportunities to gain efficiencies and maximize the impact of its innovation programs.

What GAO Recommends

GAO recommends that USAID establish (1) performance targets to assess DIV's progress toward its goal and (2) a joint approach to collaboration for similar programs in India, while considering such an approach in other countries, as appropriate. USAID agreed with these recommendations and noted steps it is taking to implement them.