This document presents a model for assessing firms' innovation and dynamic capabilities. It defines four core capabilities that all firms possess to some degree: development capability, operations capability, management capability, and transaction capability. These capabilities represent both technological and business drivers of innovation. The model was empirically tested through a survey of over 1,100 Brazilian manufacturing firms. Regression and factor analyses validated the model. The results showed that operations capability has the least influence on innovation and is the least dynamic. This reinforces the idea that operations is an "ordinary capability" while the other capabilities better explain firms' dynamics and innovation performance. The study aims to provide a comprehensive framework for understanding the relationship between dynamic capabilities and innovation.