The analysis of the scientific literature has revealed that low technology sector has wantonly been left aside in terms of technology adaptation and generated potential for innovation (Santamaria et al., 2009; Hirsch-Kreinsen, Hahn and Jacobson, 2008) . Recent studies emphasise that there is a need to unify the standards of industry classification since the classification provided by the Organization for Economic Co-operation and Development (OECD) seems to be working improperly (Yin, 2011;

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... ch-Kreinsen, 2006) . This discourse in the scientific level is a pretext to analyse the phenomenon of innovation in low-tech sector from the qualitative approach focusing on the challenges that this sector faces while implementing innovations. Considering the broad concept of innovation, many qualitative and quantitative aspects should be disclosed including the most cited innovation dimensions such as process innovation, product innovation, marketing innovation and organisational innovation. The paper aims to explore the peculiarities of innovative activities in low technology sector focusing on the challenges that the companies face during the process of innovation implementation. Low-tech sector in this paper refers to the industrial companies that prefer the usage of traditional technology in the following three branches of manufacturing industry: wood, wood products and paper production; furniture production; textile and the wearing apparel production. The results of the research suggest that the ability to solve the issues of innovation adaptation, to follow a new attitude towards production, to satisfy the dynamic demand and to reach higher productivity level may lead low-tech sector companies to a more innovative performance, and this way could enable them to gain competitive advantage over their rivals.