The institutional pathways through which grassroots struggles and initiatives can not only be articulated but also nurtured are crucial for inclusive development. It has been noted earlier that to institutionalize even a small change, multiple interventions are required at different levels and in different systems. The paper is divided in four parts. In part one, the nature of institutions is discussed in the context of economic situation and socio -ecological conditions The nested nature of institutions provides space for different interest groups to negotiate outcomes of collective preferences. These outcomes may not be optimal given the asymmetry in power and negotiating ability. While discussing the policy options for strengthening institutional environment, need for reshaping the structure of governance is stressed. Two particular recommendations pursued through 13th Finance Commission leading to establishment of District Innovation Fund and Centre for Innovations in Public Systems. The management of technological interface is discussed in the context of continuing inertia in society in dealing with longstanding social problems. An example of techpedia.in as well as IGNITE awards of National Innovation Foundation [NIF] as a way of forging new institutional platforms for promoting creativity of technological youth and young school children. Finally, the institutional context of reduction of transaction costs of various actors is described suggesting the need for mass sourcing of ideas to make society creative, collaborative and compassionate.