In contemporary economy innovations by the scientists are seen as a driving force of the economic development. Innovation performance is vital to achieve sustainable country’s competition and to stay in pace with other developed economies (Grossmann 2009).

The paper aims to reveal theoretical aspects of innovation activity, to systemize and analyze the key elements of measurement framework and relationship between the innovative activity and patents, research and development (R&D). The study is devoted to describing the conceptual elements of innovation, assessing if prevailing understanding about innovation performance approves theoretical approaches and reviewing innovation tendencies in Lithuania. Obtained results lead to get the general view about the innovation activity development. The research methodology is based on theoretical approaches’ comparative analysis, academics’ survey examination and generalization.