The dynamics of research and innovation within firms devoted to development of transgenic crops have barely been studied. In the private sector, where profit seeking is crucial, the parameters that define these dynamics are different from those of academia, as firms must take into account strategies, research funding, market conditions, and public opinion, especially in the biotechnology area. The paper aims to characterize modes of innovation and scientific labor division in agro-biotechnology firms that are not dominant by analyzing enterprises in Argentina and France. These firms show that innovation is a dynamic factor, varying according to the context in which innovation takes place. Basic research is conducted either by the public sector alone or with private sector participation. The international division of labor in the innovation field is not explained by a simple North-South model. On the contrary, it relies on the particular conditions of each country and on the firms’ general interests. JEL Codes: O32, L6