ABSTRACT
This chapter argues that capabilities development happens by interactions between different strategic capabilities and specific portfolios of innovation capabilities emerge following the firm's strategic intentions. The resource-based view (RBV) is concerned with competitive heterogeneity among firms and the way they reach and sustain competitive advantage and therefore determine their performance. The chapter considers that capabilities are basically organizational abilities, composed by routines that are in continuous change, and extends the definition adding these attributes. It uses the literature on technological capabilities (TC) accumulation, as it aims to explain the trajectory that conducts capabilities from performing basic activities to advanced innovative activities. The chapter develops an approach that is not limited to only ensure technical sufficiency, but to start commercialization stages, which do generate value and rents: it attempts to explain the move from being capable to invent to being capable to innovate.
