USAID Innovation Lab: Revived & Reimagined

by ethan.brook News Editor

Every great new discovery has to start somewhere.

Penicillin emerged from moldy petri dishes and years of rigorous testing. The Spice Girls began with an open audition, countless rehearsals, and demo tapes circulated with a rebellious spirit. Similarly, a small program called Development Innovation Ventures, or DIV, once fueled groundbreaking discoveries in U.S. foreign aid.

Like much of the U.S. Agency for International Development, DIV – which cost less than 12 cents per American annually – was dismantled within the first few months of a second administration. Crucially, projects like a new low-cost, electricity-free respiratory kit for infants were cut off from funding just as they neared completion, according to Sasha Gallant, who led DIV under USAID.

As global health initiatives struggled to survive, the world lost a vital resource for identifying effective foreign aid strategies. DIV uniquely focused not only on immediate life-saving efforts but also on learning how to save even more lives in the future.

But now, one year later, DIV is back—and reimagined. Former leaders have transformed the program into an independent nonprofit, the DIV Fund. Supported by private philanthropy, including a $45 million grant from Coefficient Giving, the work of building a brighter future continues.

“It was hard to even think about innovation early in the year. It felt like putting out fires,” said Gallant, who co-founded the new fund. “But ultimately, you also have to build better houses. We need better tools to prevent those fires.”

Consider Guatemala, where corn is a dietary staple. A DIV-backed program, Semilla Nueva, is developing maize varieties bred to contain higher levels of zinc, iron, and protein, offering a novel approach to combatting malnutrition. In Uganda, Health Access Connect is deploying motorcycle taxis to deliver healthcare to remote villages, while in Bangladesh, the ARCED Foundation is leveraging data and satellite imagery to address air pollution.

DIV’s approach differs from many NGOs that primarily fund established solutions. DIV prioritizes incubating and rigorously testing new approaches to determine their effectiveness. Only after demonstrating positive results does DIV support scaling up those projects.

This model proved highly successful during DIV’s 15 years at USAID. In 2021, economists, including Gallant and Nobel laureate Michael Kremer, estimated that the $19.2 million DIV invested in its first three years generated $281 million in social benefits—a testament to its impact on improving lives through careful research and development.

“People readily support programs with proven effectiveness,” like investing in teachers, distributing malaria nets, or vaccinating children, said Gallant. “But somebody had to first determine that those interventions worked.”

As an independent nonprofit, the DIV Fund faces funding constraints compared to its time at USAID. This year, the fund will distribute approximately $25 million in grants, less than half of its previous capacity. Support their work by donating here.

However, DIV’s strength has always been its ability to achieve significant impact with limited resources, particularly in translating promising ideas into widespread adoption. Gallant emphasized the fund’s goal of collaborating with partners—philanthropists, governments, and international organizations—to ensure that innovation “meaningfully influences” funding decisions.

Should the U.S. government express interest in re-engaging, Gallant affirmed they would welcome the opportunity. “The doors are entirely open,” she said, “and will remain open to any partner seeking to integrate evidence-driven innovation into large-scale programming.”

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