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The main problem of contemporary business is to align the reproductive cycle of an enterprise and the innovative dynamism of production due to global competition. We must realize that the enterprise is the product of the activities of the entrepreneur (owner), the enterprise as a productive system creates (produces) products (goods and services). Thus, there is a natural conditionality of productive innovation system and its product. If we use the classification of innovation of Professor Valenta (Mikoláš, 2011, page 146), we draw following conclusions. If the enterprise comes with qualitative product innovation of a sixth order (which is change, respectively emergence of a new generation of product) and possibly higher innovative order when it changes the functional and structural conception of the product (possibly changes the means of product concept as a whole, the principle of the technology or the even access to nature, etc.), then it is obvious that the productive system (enterprise) must also be a new generation. Thus, a new generation of enterprise creates innovated product with new technologies and new work organization, etc. However the consequences of this dual qualitative innovation, i.e. entrance of a new generation product and the new generation of the productive system (enterprise) should be recognized. The paper presents the latest theoretical knowledge of the author about the negative and positive effects of product innovation process on the dynamics of reproduction potential of enterprise. The paper builds on the research projects undertaken by the author in the Czech Republic and Poland. Immediate develops the idea of the article Dynamics of development of the productive system and in particular the book Competitive potential of the industrial enterprise.
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