ABSTRACT
The chapter explores the connections between scientific production and innovation in Brazil and compares it to various countries, with a focus on supply and demand conditions. The chapter explores specifically the discrepancy between Brazilian institutions’ ability to produce good science and the difficulties faced by Brazilian firms to generate and absorb technology. Brazil has a relatively strong science base, producing a significant and impactful scientific output – as in life sciences and agriculture – but at the same time has performed relatively poorly in innovation output as measured, for example, by patents. The chapter outlines some of the supply and demand issues at play including human capital constraints (lack of engineers as well as limiting immigration policies) and protectionist policies that increase the cost of knowledge inputs for firms.
