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Industrial Development and the Innovation System of the Ethanol Sector in Brazil

Discussion Papers

No.109

June 2007

ABSTRACT

The purpose of this paper is to analyze innovations and the innovation system and its dynamics in the ethanol sector in the State of São Paulo. More specifically, this paper focuses on the development process in the sector, the public policies taken to promote the sector, and the organizations and key players involved in these policies and their responses to unforeseeable changes in economic, social and technological environments. To this end, this paper takes an historical perspective and reviews data on the cultivation of sugar cane, the production of ethanol, and on sugar cane yields as indicators of the innovations achieved in the sector. The geographical distribution of these indicators is also examined. Next, several cases in Piracicaba and Campinas in the State of São Paulo are presented; these give us a more concrete idea of the processes involved in innovation and technology transfer. Based on these observations, the ethanol cluster and the innovation system of the State of São Paulo are discussed from the viewpoint of the flowchart approach to industrial cluster policy.

Keywords: Industrial Agglomeration, Innovation, Sugar Cane, Sugar, Ethanol, Brazil
JEL classification: Q16, Q42, R12

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Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.