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The aim of the paper was to identify the present situation in innovation policies of small and medium-sized enterprises in the South Moravian and Moravian Silesian regions. In order to achieve the specified objective, quantitative research was carried out in the small and medium-sized enterprises by way of questionnaires. The achieved results imply that the enterprises under investigation apply competitive strategy focusing on top quality of goods on offer. The research manifested that the companies focused markedly on innovations in supplying products on offer with additional functions or features. The research results show that the companies do not conduct changes in production organization frequently, not even following their earlier innovative activities. The results of the research into the innovative activity "change in product design" imply that this activity is not applied frequently in comparison with the above-mentioned activities. Based on the interviewed companies' weak points in human resources, the elementary drawbacks include lack of management's command of foreign languages as well as production staff's expert skills. The results of the research imply that the interviewed companies perceive the sphere of products (improved product quality, extension of a product range), the sphere of new technologies and the sphere of an increase in market potential as the most significant. The questionnaire inquiry shows that innovative and development activities are most frequently financed from companies' own funds, subsidies/grants, bank credits and leases. Mortgages and venture capital are only made used of occasionally.