*Isa Kaita College of Education, Dutsin-Ma, Katsina State, Nigeria
**Kampala International University, Uganda
Online published on 7 June, 2014.
Small and medium enterprises (SMEs) play a vital role in the Nigerian economy and are considered as a backbone of industrial development in the country. The objective this study is to justify the level of relationship between innovation and success among SMEs. Determine the level of innovation and level of success among the SMEs and lastly to establish whether there is significance difference between the level of innovation and the level success between SMEs. The study followed a descriptive survey design, given the target population of 108 SMEs in Kano state; a sample size of 85 was selected. The data for the study are collected through use of questionnaires as the main tool. It discover that the independent variable (innovation) significantly influence change in the dependent variable (success). Therefore, it is crucial for SME to invest in R&D and innovation programs to always ensure that they are moving ahead, through the formation of cluster.