This paper takes a closer look at innovation systems, including the various actors involved, their interrelationships, and governance mechanisms. Innovation systems operate at different levels, in terms of structure, functioning, and performance at the national level, and from two different angles: as a macrostructure that involves different functions and key organizations working on these functions, and as the composite of different innovation networks comprising individuals and local and national organizations.
The "Technological Innovation Act", promulgated in Brazil in 2004, represents the main legal framework implemented to promote technological innovation and to delineate a favorable scenario for scientific development in Brazil. It regulates specially the relationship between Scientific and Technological Institutions (STI) - such as universities and public research institutes - and private companies in Brazil.