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Purpose

The purpose of this paper is to describe the role of innovation for firm competitiveness from a systemic point of view, and to review recent literature about the interactive innovation model.

Design/methodology/approach

The research question posed in this paper is: what critical innovation factors hinder/promote innovation activity in the individual company? The paper is intentionally closed into a particular field of literature, i.e. the interactive innovation model.

Findings

It was found that the research policy implications of the interactive model will be that the emphasis on research must turn more towards relations between elements generating innovation systems at various system levels. Many methods must be applied in the same research project or research model.

Originality/value

The paper illustrates what critical innovation factors hinder/promote innovation activity in the individual company.

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