The role of innovation seems limited . . . but in Economies like Brazil it seems to be the key . . .Spence argues that poor countries grow through two primary mechanisms. First, they acquire knowledge from rich countries. Second, they specialize in producing goods that are demanded by other countries, so that they can sidestep limited domestic purchasing power and the divergence between what locals demand and what the country is good at producing. Put simply, success requires that countries educate their populations and integrate into the global economy.
[Update]: I apologize because I did not include the link to the book review. It is there now.