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There are cities in Brazil which have evolved from their low tech agricultural origins to become important players in the high-tech field, as it is the case of Satildeo Joseacute dos Campos, in the State of Satildeo Paulo. Companies such as Embraer, Petrobraacutes, Johnson & Johnson, Monsanto, and General Motors are installed in the city, as well as R&D institutions, namely the General Command of Aerospace Technology and the Institute of Space Research, and public and private universities, such as the Federal University of Satildeo Paulo, and the University of the Paraiba Valley. During the last decade, local stakeholders have been addressing the strategic challenges facing the city and its neighboring regions, and their impacts on the competitive position already achieved and on its future prosperity. One of the recent measures taken by the city's administration was to establish a technological park, in order to support the further development of the innovation system operating in the region. The paper will discuss the competitive matters facing the city and its innovation system, and it will propose a framework for supporting the political decision making process regarding the initiatives that will be designed to addressing such issues.