Innovation and dynamic capabilities have gained considerable attention in both academia and practice. While one of the oldest inquiries in economic and strategy literature involves understanding the features that drive business success and a firm's perpetuity, the literature still lacks a comprehensive model of innovation and dynamic capabilities. This study presents a model that assesses firms' innovation and dynamic capabilities perspectives based on four essential capabilities: development, operations, management, and transaction capabilities. Data from a survey of 1,107 Brazilian manufacturing firms were used for empirical testing and discussion of the dynamic capabilities framework. Regression and factor analyses validated the model; we discuss the results, contrasting with the dynamic capabilities' framework. Operations Capability is the least dynamic of all capabilities, with the least influence on innovation. This reinforces the notion that operations capabilities as "ordinary capabilities," whereas management, development, and transaction capabilities better explain firms' dynamics and innovation.

New technologies have challenges to overcome when applying it to new products. New products depend on the technological and market novelties. Therefore, the term product innovativeness is defined as the technological and market degree of novelty. For several industries, the nanotechnology has been the latest technology, and it has also been included in Brazilian government strategic agenda. Considering the importance of new technologies and innovation, we describe the paths and challenges of nanotechnology-based cosmetics development to achieve product innovativeness. Opposing the new product development (NPD) mainstream based on efficiency, we used the evolutionary approach by highlighting the novelties. We describe three NPD stages (conception, operationalization, nd launch). For empirical evidence, we chose two Brazilian emblematic cases (suppliers for cosmetics industry) that domain nanotechnology. One case scans more potential market novelties and consequently produces indigenous nanotechnology for international industries such as cosmetics, food, and textile. The second case represents the new technology limited by the application in cosmetics. New technologies are not an innovation guarantee. Market demands must be identified in the early stage of NPD. When the focus is the novelty, the NPD evolutionary approach is useful.