This chapter analyses the functioning of the Brazilian agricultural innovation system. It discusses the role of the different actors and describes governance mechanisms to define priorities and evaluate performance. It analyses trends in agricultural R&D expenditure and sources of funding, the role of intellectual property protection in fostering knowledge markets, and outlines mechanisms used to facilitate knowledge transfers, including collaboration at the national level and the adoption of innovation at the farm or firm level. It also outlines efforts to strengthen international R&D co-operation. Finally, it provides evidence on the performance of the agricultural innovation system, including R&D outputs and adoption rates.