Abstract. Th e business cycle is an important factor that can often aff ect the decisions to un-dertake or discontinuance of the innovation activity by the industrial enterprise, both in Poland, but also in more developed countries. Th e primary objective of the study is the attempt to search for directions, as well as the impact of economic conditions on the innovation activity of Polish enterprises in the area of the industrial system of the Mazowieckie province. As a result, it is possible to determine the boundary conditions for the regional network of innovations and its model structure. Keywords: innovation, business cycle, region, industry, Poland JEL Classifi cation: O31, E32, R11, L10, L60 INTRODUCTION Th e problem of business cycle on innovation activity of enterprises is not a new phenomena, but still present, what is confi rmed by constantly emerging publications in this fi eld, both on the domestic and for-eign market (Dominiak, Churski 2012; Etzkowitz, Leydesdorff 2000; Archibugi at al. 2013; D’Estea at al. 2012). At the enterprise level, literature in economics shows varied impact of the economic slowdown on the dynamics of innovation expenditures. Th ere exists a broadly described dispute in this regard. Traditionally, investments in new technologies should be treated as the anti-cyclical measure for those operating on the enterprise market, because the limitations found in the slowdown period infl uence the level of their profi t-ability, what generates the imperative of searching for paths to obtain higher productivity. Th erefore, accord-ing to the concept of „creative destruction” of J. Schumpeter, the crisis creates new perspectives for economic entities (Schumpeter 1939). As the result of this, many of them should seek to reorganize structures and to improve the quality of own innovation activity. Th e manifestation of this approach should be the person-nel of research and development sphere, which in the period of crisis is subject the natural phenomenon of