This chapter explores how Embraer, Latin America’s leading aerospace manufacturer, has built and sustained its innovation capabilities through strategic coupling within Brazil’s evolving institutional and industrial landscape. Drawing on the Innovation Systems from Below (ISFB) framework, the analysis highlights how Embraer combines internal competence-building with external knowledge exploration, leveraging partnerships with global suppliers, government agencies, and scientific knowledge providers (SKPs). The chapter shows how formal R&D collaborations, market and consulting linkages, informal networks, and knowledge spillovers contribute to the firm’s ability to innovate across regional, national, and global scales. Particular attention is paid to the role of risk-sharing partnerships, venture capital initiatives, and engineering culture in shaping the firm’s strategic responses to institutional constraints. The chapter offers an enhanced conceptual lens to understand how developing-country firms address complex innovation environments. The findings demonstrate that Embraer operates primarily within a bounded exploration mode, while also exhibiting features of reframing as it probes future-oriented technological trajectories in global aerospace markets.