Innovation is the pre-requisite of survival &success in each generation. Right from the stone age to the digital age of the present day; the human civilization has gone under countless revolutionary changes. Today’s astonishing statusis not reached overnight; nonetheless, it is the result of a very lengthyseries of umpteen subtle changes.Change is an ever-inevitable phenomenon of nature as well as market; which may be in disguise of a challenge or opportunity to every industry and firm.Whether a change is foreseeable or not; its implications and repercussions are affected in a manner, that how that very change is embraced by an organization or industry. An enterprise may be big or small, however the degree of its refinementto accommodate a change is dependent on the consistency and strength of its innovative capacity. This study is a consolidated review, which seeks to substantiate the existence of a certain correlation between the degree of innovative strategies in the people, product and process of various Indian Small and Medium Enterprises;and the prospective potential of its benefits at the firm level innovation of such enterprises. Keywords Innovation, Entrepreneurship, Performance, Competitiveness, Productivity