This study analyses some of the strategic and organizational changes experienced in public firms following privatization in its double facet: sale of companies and deregulation. Specifically, we analyse the process of innovation in terms of products, processes and organization. We also look into the development of new businesses and strategic renewal, which in the end shape the entrepreneurial capacity of a company. A sample of Spanish firms which were privatized between 1985 and 2000 shows that after privatization, these companies have experienced a significant increase in entrepreneurship. These changes are even more appreciable when a high sector competition is added to the ownership shift. Once they join the private sector, their level of product, process and organizational innovation is higher. They also develop new businesses at national level, reinforce their international activity and embark on strategic renewal processes by shedding the lesser profitable businesses and modifying their competitive strategy so as to gain efficiency
