Innovation is a natural tendency of the human mind to thrive on variety, regardless of the activity involved. All the man-made changes that the world has witnessed are a result of this tendency to look for something different. Over the recent decades, rapid development of various aspects of innovation has been observed. Innovation is understood as the process and outcome of creating something new and valuable. book analyses the role of innovation in increasing competitiveness of different types and in various organizations, business entities or other institutions. It is build on an assumption that innovation and competitiveness are closely related. Our additional aim is to find out where contemporary innovative ideas come from and how they evolve in modern organizations. Another question that is raised touches upon impacts of innovation on an organization’s performance, survival and competitiveness.