SUMMARY
Smallandmedium-sizedtechnology-basedcompaniesarerecognizedasessentialfortheeconomyandbusinessactivity.Thepurposeofthisarticle is to study how the technological innovation process occurs in small and medium technology-based companies located in the metropolitan region oftheParaíbaValleyandNorthCoast–Brazil.Thetheoreticalframeworkusediscomposedbysixourmodelsofinnovation:thetechnologypush, the market pull, the coupling innovation process, the functional integration innovation process, the systems integration and networking innovation process and open innovation. It was used in this research the multiple case studies with a qualitative approach. Data were collected through semistructured interviews with owner-managers. The sample consisted of four small and medium technology-based companies of metropolitan region of the Paraíba Valley and North Coast – Brazil. In the data analysis, there was an intra and cross case analysis in order to verify the similarities and differences of the cases studied. As a result of observation of innovation development models adopted by companies, it appears that the model is closer to what was proposed in the chain interactions model. The development of innovation depends on the type of economic activity that is developed by the company and the interactions it has with internal and external environment. It was concluded that the small and medium-sized technology-based companies do not innovate in a systematic way, but intuitively and very focused on the ideas of its founders. They innovate focusing for meeting the requirements of customers and the needs observed in the market. The formation of partnerships is still viewed warily by the leaders and owners.