Purpose: The fields of competence development and capacity development remain isolated in the scholarship of learning and innovation despite the contemporary focus on innovation systems thinking in agricultural and rural development. This article aims to address whether and how crossing the conventional boundaries of these two fields provide new directions for developing learning and innovation competence in international development. Design/methodology/approach: Using mixed methods research, this article assesses work environments for experiential learning and innovation, and investigates effective ways of enhancing core competence in agricultural research, education, extension and entrepreneurship. Findings: Findings suggest that while the focus on input and output indicators are relevant for technological innovation competence development, outcome indicators, such as measures of changes in cognitive, affective and psychomotor domains of learning and innovation, would better serve the purpose of developing organisational and institutional learning and innovation competence. Practical implications: This research concludes that crossing the conventional boundaries of competence development and capacity development serves as a way to renew the role of education within the innovation systems thinking. However, such an attempt to enhance human capabilities and functionings through education should integrate theory-based, competence-based and experiential learning components as a coherent whole. Originality/value: This article demonstrates the value of crossing the conventional boundaries of the two seemingly unrelated fields--competence development through education and capacity development through extension--to provide new directions to operationalise innovation systems thinking in agricultural education and extension. (Contains 6 notes, 4 tables, and 2 figures.)