In today's modern age, the words innovation and modern technology are being used more and more often, and yet their meaning is not so well known or completely clear to everyone. The word innovation is often identifies with invention, but it actually represents something new in the market, something innovative that will be of very big benefit to its future customers than the previous products / services they have used. The word modern technology is often associated with robots, spacecraft and something similar, and essentially every human being is surrounded on every day by at least one form of modern technology even though humans are not even aware of it. The development of innovations and technologies create an impact on human life in a way that facilitates everyday activities. In order for someone's business idea to become a successful innovation, every entrepreneur or innovator must be well informed about the market situation, but also about innovations in theory and how they are related to technology. Innovation and technology are nowadays considered a key factor in the growth and development of modern enterprises, and at the same time they are the driving force of today's economy of many countries. In the development of innovations and technology, emphasis is placed on diffusion of innovation and technology and how much it actually affects the success of the final product. Innovation and technology create a competitive advantage in the market. Innovation and technology force the competition to introduce them in order to survive in the market at all. In order to successfully ensure a competitive advantage, it is crucial to get to know innovation strategies and technological development strategies, but also a good knowledge of the environment and market needs. After that, the company defines its strategy of achieving competitive advantage, and the two basic strategies between which the company chooses are low-cost strategy and differentiation strategy.