This article describes the results of research undertaken to identify the potential for innovation possessed by companies located in the State of Rio Grande do Sul, Brazil by analyzing internal, external, operational and strategic factors, the organizational structures, the cultural and the organizational values. The methodology used was to develop a structured questionnaire which was then distributed to seventy companies located in different cities and operating in different sectors. The

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... ation obtained from this research was classified and analyzed. The results of the analysis demonstrate that the greater part of the firms researched have only a moderate innovation potential and that it can be concluded that their industrial, commercial and service sectors have the same strong points and face the same difficulties.