Internationalization of knowledge-driven SMEs: entrepreneurial patterns and evidence from Brazil

Purpose Bridging resource-based view (RBV) and international entrepreneurship (IE) theories, this study aims to explore the role of knowledge as a key driver of competitive advantage and a catalyst for the international insertion of Brazilian SMEs, bringing novel insights on the dynamics observed in an emerging economy. Design/methodology/approach A sample of 2,367 Brazilian knowledge-intensive SMEs was obtained through open-data mining from Brazil’s leading innovation agencies for the period 1997–2020. Logit, Probit and Generalized Estimating Equations econometric techniques were used to understand the association between different features of knowledge intensity and the strength of internationalization observed in these firms (exports, imports and Foreign Direct Investment). Findings The findings reveal the driving effects of knowledge intensity and associated learning mechanisms on the internationalization patterns of SMEs. R&D intensity and patent ownership emerged as strong predictors of export performance, while specialized workforces exerted different levels of influence across the analyzed dimensions of internationalization. Research limitations/implications This study requires contextual interpretation for cross-country comparisons. Two key considerations emerge: i) Brazil’s unique institutional environment may amplify some observed patterns like import-learning effects. Comparative studies should account for such structural moderators when in relation to more liberal emerging markets. ii) Secondly, official secondary data ensures breadth and reliability, but limits insights into firm-level strategic processes. Practical implications This study reveals actionable patterns for enhancing SME internationalization: i) human capital stratification – mid- and high-skill education combined with sustained R&D appears to have a strong association with export performance; ii) knowledge arbitrage – strategic imports and inbound FDI optimize learning spillovers; and iii) IP leverage – patent portfolios strengthen both export competitiveness and FDI attractiveness. Social implications The findings demonstrate that knowledge democratization – via mid-skilled workforce development and sustained R&D – generates dual benefits: firm-level internationalization and inclusive societal growth through employment and innovation spillovers. Policy priorities should emphasize: i) scalable post-secondary education, ii) accessible R&D programs targeting SME needs and iii) skill-building initiatives that bridge labor market gaps. Originality/value This study advances international business research on three fronts: integrating RBV and IE theories to analyze knowledge-intensive SMEs in a context of a transition economy; uncovering paradoxes such as mid-skilled workforces driving internationalization more effectively than high-skilled labor; and revealing the relevance of smart-imports as mechanisms to propel value-added exports. By bridging theory with emerging-market realities, this work unveils how knowledge fuels SMEs internationalization in resource-constrained settings.