The study examines the innovativeness of small and medium-sized enterprises (SMEs) in the Wielkopolska region and factors influencing innovation in 2001-2004. The analysis is made against the background of changes in innovativeness and factors determining innovation in 1992-2000. The author used the results of surveys conducted among 163 SMEs in Wielkopolska in 2005. Overall, SME innovativeness did not increase in the analyzed period compared with previous yeas. The innovativeness of enterprises tended to grow with an increase in company size, the level of education of company managers (owners) and the age of the company. Companies using the Internet, especially those using it for sale and purchase transactions, displayed greater innovativeness. Innovation is restrained by scant financial resources, outmoded equipment and machinery, high business risk and the absence of an active pro-innovation policy pursued by the government.