Introduction

Debates on innovation policy—its importance, scope, impacts, etc.—have taken place in the ambit of both developed and developing countries. The BRICS group of countries (Brazil, Russia, India, China and South Africa) stand out within this debate for their social and economic potential and also for the impact such development may have on other countries.

With a view to furthering this debate, this article presents the innovation policy adopted by the Brazilian Federal Government. The focus is on the period ranging from 1990 to 2006 even though some general remarks will be made about state intervention before this period that has influenced the Brazilian national system of innovation. The analysis will be tackled by means of an approach that is explicitly based on a combination of the neo-Schumpeterian and Latin American structuralist frameworks, conceiving innovation as the key element of the capitalist dynamics (Cassiolato & Lastres 2008).

Within this framework, the idea of a National System of Innovation1 understands the innovative process as an integrated and systemic (and not linear) process. Although it focuses on the enterprise, institutions and organisations—and how they interact—are also important elements. Furthermore, context and history are crucial components and all policy elements affect the dynamics of the system. Thus, the analysis that follows covers not only innovation policy but science and technology and industrial policy and, more importantly, the overall economic policy of Brazil during the period.