Small and medium-sized enterprises (SMEs) are an important driver for job creation and economic growth, and an important source of innovation. Innovation through the activities of research and development is a crucial driver of economic growth. For that reason, in many countries, there is an active policy on encouraging innovation. Innovation capacity of SMEs in Moldova is very low. Subsequently, the innovation impact on national economy is rather small. The current legal framework does not stimulate enough innovation activity. There is no system of well-established direct and indirect tax incentives aiming to favour research and developing activities at the level of enterprises.