Marta Czyżewska
  The article contains the presentation of the statistical analysis results which enable to confirm the thesis that the economy is driven by innovations. Among the factors having impact for the innovativeness level are private equity investments in early stage innovations. Using the European Innovations Soreboard data relating 34 European countries strong relations between the investments and the level of innovativeness were shown. Empirical evidence shows that the law Poland’s innovativeness level is caused by rare usage of private equity financing by SME sector. As the entrepreneurs do not know the source of finance they do not introduce radical investments which are the most precious ones for the dynamic progress of economies. Unacquaintance with this financial instrument is very serious barrier constraining the development of polish SME sector.