Abstract
This article discusses current approaches to the study of institutional change and innovation in the global environment. Although there is convergence in policy innovation as a result of globalization, there is a tendency to emphasize homogenization and leave aside variety and heterogeneity. We examine current explanations of how policy paradigms are diffused and consider how these explanations have been applied to a specific policy domain, namely pension reforms. The case study of Brazils pension reform is presented in summarized form as an empirical illustration of the arguments developed in the theoretical discussion. We find that national responses to the influences of globalization are in fact shaped in crucial ways by domestic institutions and path dependency phenomena.
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