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Purpose: This study aimed to assess processes related to absorptive capacity (AC) dimensions in innovation-generating companies of traditional sectors in the State of Rio Grande do Sul, Brazil.  Originality/value: Companies may establish differential advantages in the market due to how far they apply acquired knowledge and use organizational mechanisms. These mechanisms include intangible elements essential to the development of AC, a capacity that companies do not often recognize as important to generate innovation. Based on previous studies, we established a summary of AC elements and AC within its different dimensions. Then we created an assessment tool for AC analysis and knowledge generation dynamics in innovative micro-processes in organizations of the traditional sectors.  Design/methodology/approach: Data were collected using a semi-structured questionnaire with 47 items to assess potential and realized AC and their dimensions. We assessed two companies on their AC. These companies were participants of a project of the Núcleo de Apoio à Gestão da Inovação (Nagirs) of Instituto Euvaldo Lodi (IEL) in the State of Rio Grande do Sul, Brazil, oriented to enhance innovation in traditional sectors. This study used content analysis and compared the evidence found with findings in the literature.  Findings: The results suggested that, in companies of traditional sectors, AC can be considered explicative to innovation generation and the organizational dynamics orchestrating mechanisms for knowledge renewal. Data reveals that knowledge renewal requires managers and qualified workers’ engagement in search and application of external information that responds to the company’s strategic challenges. The study also contributes to establishing an assessment tool for AC in companies of traditional sectors.

ABSORPTIVE CAPACITY OF INDUSTRIAL COMPANIES IN TRADITIONAL SECTORS IN THE STATE OF RIO GRANDE DO SUL, BRAZIL