Abstract
Although family firms constitute the bulk of economic activity in many world economies, their behavior is still far from understood. This is particularly true when it comes to innovation activities of family firms in efficiency-driven environments with limited indigenous innovation potential, low quality of innovation systems and weak innovation policies. The sample consisting of 293 family firms and we reveal that in such setting internal competencies, collaboration, and public support facilitate innovativeness and diminish the negative effects of firm maturity and innovation barriers among family firms. Tacit R&D knowledge and internal absorptive capacity outweigh the negative effects on innovation of family firms.
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