The purpose of this study is to analyze the capacities and functions of inclusive innovation in the agricultural development of deprived rural areas. While numerous studies have examined mainstream innovation from various perspectives within the field of agricultural development, a clear gap remains in the literature regarding the analysis of inclusive innovation in this sector. Therefore, research in this area can contribute to the advancement of scientific knowledge, the enhancement of research capacity, and the strengthening of this research approach at the national leve. Conceptual analysis is the main approach of the present study. In this regard, Suddaby’s conceptual analysis methodology has been adopted as the basis of the research. The results of the study indicate that the inclusive innovation process, with a primary focus on four key principles equity (all farmers deserve to engage in the creation and diffusion of innovation through equal relationships), recognition (all farmers should be acknowledged with regard to their innovation-related needs), participation (all individuals should have equal rights to participate in innovation processes), and sustainability (innovation should be designed in a way that preserves natural resources and the environment while ensuring benefits for future generations and the continuity of agricultural production) seeks to steer the agricultural innovation system toward greater inclusiveness, justice, and effectiveness. As a result, all farmers, particularly small-scale and low-income producers, are enabled to play an active and effective role in the creation, application, and utilization of innovations.