ABSTRACT
This chapter explores the role of innovation in fostering the growth of Brazilian agriculture. On the one hand, the innovation process has promoted a fast-growing expansion in the Brazilian agricultural production, including several cultures. On the other, this process has caused increasing heterogeneity and increasing inequality amongst farmers of different regions. The chapter concerns the enormous growth of agricultural productivity due mainly to the innovative drive sustained by domestic investments in Research and development, in which Embrapa played a key role. The cluster of technological innovations developed domestically was essential for the growth and transformation of Brazilian agriculture. Migration of farmers from the Southern to the Northern also played an important role in the diffusion of knowledge. Although total factor productivity has grown significantly, there is differential growth amongst agricultural regions in Brazil. Public policies should play a crucial role for the reduction of structural heterogeneity in Brazilian agriculture.
