The objective of this paper is to indicate and discuss the practical factors that enable small and medium enterprises (SMEs) to be innovative, strengthened and updated. The discussion was based on the experience in the field of eighteen local innovation agents, professionals trained by SEBRAE (Brazilian Support Service for Micro and Small Enterprises), who are also holders of a CNPq (National Council for Scientific and Technological Development) scholarship. The agents monitored an initial total of 784 SMEs in the state of São Paulo, Brazil, over a two-year period. The agents performed management and innovation diagnostics in the participating companies and based on the results of these studies, proposed action plans to improve their competitive capabilities. The implementation of innovations was systematically monitored their evolutions observed in each company. The author of this paper guided the selection and organization of the field data for the elaboration of the agent’s articles. During the orientation process, reflections were stimulated on the main situations that contributed to or hindered the development of innovation in the companies monitored. Also, a questionnaire was applied to measure the agents' empirical experience. Key indicators for the establishment of and maintenance of innovation in SMEs are revealed.