HOW DOES NATURE AFFECT COMPETITIVENESS AND INNOVATION?

Abstract The aim is to strengthen the understanding of nature as an attribute of competitiveness and innovation from a regional perspective. A dialectical relationship is used to consider competitiveness, innovation, and nature as interconnected and not separated dimensions. The expansion of the sugarcane frontier in the south of the Brazilian state of Goiás is taken as empirical evidence. The method compares two municipalities, Mineiros and Goiatuba, with similar economic structures but located respectively in unfavorable and favorable environments. While Mineiros is less competitive than Goiatuba, the challenge of producing sugarcane in soils with higher erodibility stimulated investments in knowledge creation.