Abstract

In the article the importance of micro-, small and medium sized enterprises has been described in the context of influence on economy at national and EU levels. SMEs problems and barriers that they face on their way towards innovation have been presented, as well as factors that influence such situation. The author shows how EU institutions understand the term „innovation”. Furthermore, the level of innovationof Polish SMEs has been assessed and compared with other EU member states. This way main reason of low level of innovation among Polish SMEs and factors responsible for developing the innovations could be identified. It has been proven that government has significant role in this context. The article concludes with recommendations addressed to the government regarding the framework of innovation-oriented actions which should be taken towards enterprises.