This book looks at Brazil’s recent experience in using knowledge for development. It examines the major barriers confronting the country in its transition towards a knowledge-based economy, and presents elements of a viable strategy which would allow it to step confidently into the future. However, while Brazil has tremendous strengths and the ability to take immense strides forward in the medium term, there are formidable challenges which need to be faced. The country continues to be plagued by a number of weaknesses, hampering its potential for economic, technological and social development. The report argues that Brazil needs to put in place a more comprehensive policy framework for the broad diffusion of knowledge.The Brazilian innovation system and the productivity of research need to be strengthened, while the policy frameworks which are key for disseminating the outcomes of research throughout society as a whole need reinforcing. These reforms should be carried out in such a way that they help build effective links to industrial activity and lead to the creation of marketable products.