Innovative SMEs are of extreme importance for economic development since they strengthen the competitiveness of the whole country. Their innovation depends on the degree of creativity within the company, and the level of creativity further depends on a variety of other factors. With the aim of examining the impact of all factors of creativity and innovation on the final product of small and medium enterprises in the Republic of Croatia, an integrative organizational model of creativity and innovation (IOMCI) has been created. It is assumed that there exists internal and external support necessary for the development of innovative enterprises. While external support includes the supportive environment of the community, such as the existence of a national strategy that encourages innovation, incentive programs of the European Union as well as the possibility of using EU funds, internal support refers to the factors that depend on the company and includes an innovative organizational culture and climate, strategy for human resource development, individual and team creativity and the leadership ready to change and connect all these elements into a meaningful whole. This paper examines the applicability of the model to small and medium enterprises in Croatia.