ABSTRACT

This article analyzes the differences of firms in terms of innovation activities, external linkages and innovation modes according to their size and the presence of foreign capital. Using the National Survey of Employment and Innovation, we show that firms with foreign capital participation present a differentiated innovative behavior once they are stratified by firm size. Foreign-owned firms vis-à-vis domestic firms tend to make greater innovation efforts and are characterized by implementing more complex innovation modes, combining DUI and STI modes. However, larger foreign firms make in average relatively less innovation efforts and implement less complex innovation modes. These results revalue the analyses that consider the heterogeneity of foreign firms and show that those of larger relative size are not the ones with the best innovative performance, contrary to what happens with domestic capital firms.

KEYWORDS:
Innovation modes; firm size; foreign capital