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The analytical focus of research on innovation systems has been shifting recently to functions or processes that should be present in a well functioning innovation system and the dynamics of these systems. Yet, thus far, the conceptual analysis of functional dynamics and existing empirical studies reflect the realities of developed countries. Additional research is necessary to examine empirically the formation of technological innovation systems, specially ‘new-tothe- world’ innovation systems in a late industrialising context, and specifically how the knowledge accumulation function evolves in such systems. This paper is concerned with those issues: the formation of a ‘new-to-the-world’ technological innovation system in a late industrialising context, namely the Brazilian biofuels innovation system. It focuses, in particular, on the evolution of the knowledge accumulation function in the formation of such innovation system from 1975 to the present.
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