In The Framework of ‘Local Productive and Innovation Systems’ and Its Influence on STI Policy in Brazil, José Eduardo Cassiolato and Helena Maria Martins Lastres examine the origins, evolution, and policy impact of the Local Productive and Innovation Systems (LPIS) framework. Developed over several decades, this approach has become one of Brazil’s most influential contributions to innovation studies, offering a comprehensive perspective on how local capabilities, institutions, and collaborative networks drive economic development.
The authors explain that the LPIS framework emerged as an alternative to traditional development models that focused primarily on individual firms or isolated technological investments. Instead, it emphasizes that innovation is a collective process shaped by interactions among companies, universities, research institutes, governments, financial institutions, and civil society. By recognizing the importance of local knowledge, historical trajectories, and institutional diversity, the framework provides a richer understanding of how innovation takes place in different territorial contexts.
A central contribution of the article is its analysis of how the LPIS approach has influenced science, technology, and innovation (STI) policy in Brazil. Rather than promoting uniform national policies, the framework encourages place-based strategies that strengthen local productive capabilities and support collaboration among regional actors. This perspective has guided numerous public policies aimed at fostering innovation clusters, improving industrial competitiveness, supporting small and medium-sized enterprises, and reducing regional inequalities through knowledge-based development.
The paper also discusses the theoretical foundations of the LPIS framework, highlighting its connections with evolutionary economics, innovation systems theory, and development studies. Cassiolato and Lastres argue that innovation cannot be separated from broader economic and social processes. Effective innovation policies therefore require an understanding of institutions, governance structures, learning processes, and the specific characteristics of local economies. This systemic perspective has influenced not only Brazilian policymaking but also research and policy debates across Latin America and other developing regions.
Another important message of the article is the continuing relevance of the LPIS framework in addressing contemporary challenges. As countries confront digital transformation, environmental sustainability, global value chain restructuring, and increasing economic uncertainty, place-based innovation policies remain essential for building resilient and inclusive economies. The authors suggest that strengthening local innovation ecosystems can help regions adapt to changing technological opportunities while promoting more equitable patterns of development.
Overall, the article demonstrates how the Local Productive and Innovation Systems framework has shaped both academic research and public policy over the past several decades. By emphasizing collaboration, institutional learning, and territorial development, Cassiolato and Lastres provide an enduring model for understanding innovation as a socially embedded process that contributes to sustainable and inclusive economic transformation.
