The technical and organisational knowledge of the manufacturing methods is recorded in the literature and technical documentation. However, much of the technical knowledge is contained in the practical skills and qualifications resulting from the laborious acquisition of professional experience. Technical progress, as a fundamental factor in the growth of production, is made by inventions, i.e. the discovery of new knowledge and innovation, i.e. the application of new knowledge in the production process. (Begg, 2000, p. 341). This article presents the essence and sources of innovation processes in the company. Five generations?of innovation models have been characterised. The analysis of the qualitative aspect of the inclusion of innovations in the selected competition of sub-measures from the source of financing the innovative economy and the European Union was carried out.