The Brazilian Multinationals' Approaches to Innovation

Brazilian multinationals, born in a country where the environment is non-conducive to the scientific breakthrough type of innovation so stimulated in other countries, are increasingly expanding in international markets, where innovativeness is an intrinsic component of competitiveness. Aiming to study Brazilian multinationals' approaches to innovation, a new analytical framework was developed assuming that the internationalization process relies on the firm's innovative capability. In turn, innovative capabilities are derived from core competences and competence formation at firm level is influenced by the characteristics of the national environment. A survey involving 61 Brazilian multinationals led to the identification of four approaches to innovation, the competences that enable each one of them and the country-of-origin effects over competence development. That led to the explanation of why firms that do not show the expected strength in R&D, but are able to combine skillfully their organizational competences, manage to develop innovative capabilities which allow them to internationalize successfully. The overall outcome suggests that the dynamic relationships among institutions – competences – innovation – internationalization are setting new grounds for the international expansion of Brazilian firms.