Malfunctioning: Diagnosing why Brazil’s biodiesel innovation system missed its goals
Year: 2026
Type: article
Abstract: Despite the significant growth of Brazil’s biodiesel industry, the targeted technological goals — feedstock diversification, production processes, storage and stability, quality control, and byproducts — have largely not been achieved. This study investigates the underlying causes of this technological stagnation by applying the functions of innovation systems framework. A key contribution of this work is the integration of firm-level data from the Brazilian Innovation Survey (PINTEC), which offers original insights into producers’ innovation behavior, investment patterns, and perceptions. The findings point to a decline in scientific and technological activity in recent years, limited innovation efforts by most biodiesel producers, and a weak connection between firms and knowledge-producing institutions. The study also identifies the underutilization of research networks, the absence of targeted engine development, and the early-stage nature of feedstock diversification as major barriers to innovation. By triangulating indicators based on different sources, this paper provides a comprehensive view of how weaknesses in functioning of the innovation systems have constrained technological progress, even as the industry grew. The analysis suggests that the very mechanisms that secured the industry’s expansion — such as guaranteed demand and market protection — may have reduced competitive pressure and disincentivized innovation. These results offer valuable insights for the redesign of Brazil’s biofuel innovation policies, particularly in light of national decarbonization goals.
Source: Energy Research & Social Science
Author: Laura Soares
Language: English
Domain: Life Sciences
Open Access status: hybrid
Estimated APC paid: $3,450
OpenAlex ID: W7155039253