The paper aims to reveal the approach of Lithuanian companies towards innovations. In order to take into account Conditions, specific to the considered country an, overview of Lithuanian economy with a closer look at demographic and employment tendencies is presented; analysis of statistically, estimated innovation performance and state innovation policy performed. Insight into factors driving innovations into Lithuanian business companies is being made through questioning the randomly chosen 1001 Lithuanian business companies. The performed survey allows us to disclose how companies react to factors fostering and restricting innovations, how they perceive role of state policy in the process of innovative activities. Obtained results provide us, with empirical evidences how business companies react to specific economic Conditions, and if there is a sufficient correspondence between educational system and supply of know-how Susceptible employees demanded by business companies.