Increasing market competition encourages companies attract and retain customers. To achieve the mentioned objectives company managers have the following tools: marketing and innovation activity of the company. We fi nd it important to explore the innovation activity of SMEs. Determined by their size, creativity and innovation can be the key factors to survive under competition. Th e study deals with the in novation process and factors infl uencingit . Based on theoretical background and

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... results the study presents the factors infl uencing innovation activity of SMEs. Th e research results show that management's attitude, employees' motivation and positive relationship built with suppliers have positive impacts on successful operation of SMEs.