This chapter outlines the role of a well-functioning agricultural innovation system in ensuring good use of public funds, and higher responsiveness to the needs of ‘innovation consumers’ through improved collaboration between public and private participants, including across national borders. A well-functioning agricultural innovation system is key to improving the economic, environmental and social performance of the food and agriculture sector.

This chapter analyses the functioning of the Brazilian agricultural innovation system. It discusses the role of the different actors and describes governance mechanisms to define priorities and evaluate performance. It analyses trends in agricultural R&D expenditure and sources of funding, the role of intellectual property protection in fostering knowledge markets, and outlines mechanisms used to facilitate knowledge transfers, including collaboration at the national level and the adoption of innovation at the farm or firm level.

The publication reviews forty years of development experience and concludes that donors and partner countries alike have tended to look at capacity development as mainly a technical process, or as a transfer of knowledge or institutions from North to South.