Abstract
This report presents a study of the factors that influence the diffusion of innovation in Bulgarian dairy businesses. Maintaining high innovation activity and positive innovation potential is the result of the effective functioning of the innovation system. The different types, functions and factors, prerequisites and mechanisms for implementing the process of innovation diffusion are explored. It is proved that the efficiency of investment is determined by external factors, primarily by the level of economic concentration of the market of innovative products. As a results the external factors have a relatively greater impact on the economic efficiency of investing in innovation and and hence a significant direct impact on the diffusion of innovation in the dairy industry. The «highest» level of correlation is determined with the factor of economic concentration of the industry and the market of innovation project.
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