Taken in the paper issues include the ability of SMEs to absorb knowledge and innovation. The research literature has shown that the enterprises of SMEs sector are predisposed to actively participate in the process of diffusion of knowledge and innovation. On the basis of empirical studies it has been shown that small and medium enterprises do not conduct structured innovation management, which significantly impairs their ability to take the system of innovation activity. At the same time they recognize the need for its arrangement and the dependence of the rate of innovation from the methodological solutions applied in the field of innovation management. At the same time the methods cannot suppress the vital characteristics of the firms in this sector.