Abstract
This article summarizes a recent World Bank study that examined how Brazil can improve its competitiveness in the global economy by strengthening innovation. The study, based on fieldwork undertaken in 2006/2007, found that Brazil has not taken sufficient advantage of knowledge that can be acquired from abroad; that it trails its counterparts in providing a quality education and skills to use and to create knowledge; and that it has relied too heavily on government leadership to foster major innovation, while overlooking the more cost-effective approach of pushing the private sector to undertake incremental innovation and to increase productivity throughout the economy. It details specific steps than need to be undertaken to better prepare workers and firms to innovate and compete
