The major purpose of this paper is to determine the opportunities and challenges relating to successful innovation management in SMEs in German and Slovakia. The research includes SME case studies so that recommendations can be made to SMEs for enhancing innovation management in the firm. In this research secondary data is gathered predominantly from empirical studies on SMEs; since these data sources are permanent the research can be repeated easily and therefore the reliability of the findings is enhanced. In order to answer the research problem, numerical and textual data is gathered but it is analysed in different ways. There are not participants in this study, since secondary data is the only source, hence the major ethical consideration is to ensure that the original author´s intentions are expressed when interpreting the data. This research identified key innovation management success factors for SMES as: innovation management models needed to be adapted to different organisational contexts; culture had a high impact on innovation management focus; social acceptance was a major factor for original new product market success so that customer needs and competitor activities were important information sources; cross cultural and cross functional teamworking. The failure factors identified were skills shortage in the labour market; lack of skills in the company; market uncertainty, imitation by competitors; lack of R&D planning and management. The study made three new findings, which add to the current knowledge: innovation circles were an effective innovation management approach to generating and developing ideas and getting innovation to market quickly; government agencies that encourage firms to collaborate effectively enhance the level and success of innovation; SMEs and large companies have distinctly different rankings of barriers to innovation and small and micro firms are more effective in original product innovation and speed to market than medium sized companies. The limitations of this study are the lack of primary research that was possible. Therefore, recommendations for further include repeating this research but using primary sources of information, a small group of SMEs. The findings would be compared with these secondary outcomes. The surprising finding that micro and small companies were more successful than medium sized companies at new product/service innovation and generating high proportions of their turnover from it, justifies further research into this concept. The validity of the study findings is strong as demonstrated by the convergence of findings with those of the established concepts comprising the Literature Review.