The rapidly changing business environment is a forcing destinations to innovate in order to remain competitive. Innovation is increasingly recognized as being important for destination development. In times of economic uncertainty, a comprehensive overview of the factors of mountain destination innovativeness can contribute to the better development of mountain destinations. Research has identified important elements of innovativeness that contribute to mountain destination development and has determined the factors that comprise these elements. The elements of mountain destination innovativeness are tested for their importance in the first part of the analysis. An exploratory factor analysis is then conducted using only the more important elements to form three factors that represent the underlying dimensions of mountain destination innovativeness. The results show that mountain destination innovativeness incorporates the factors of sociocultural sustainability and stakeholder participation, environmental sustainability (natural environment) and proactiveness. Research provides knowledge for researchers as well as for stakeholders in mountain destinations, especially mountain destination managers, who will be able to identify the important factors of mountain destination innovativeness to focus on in order to increase destination development.