This paper aims to evaluate the effect of innovation on the efficiency of the activity of the Ukrainian industrial enterprises. The research is focus not only on the estimation of the most important determinant of the innovation but also of the detection of the Ukrainian firms with higher probability to success. Using generalized Tobit model, it was found that exporters andfirms with larger profits and wages are more likely both to innovate and succeed in innovation. Therefore, efficient firms should be supported by government in the first place. The other finding of the modeling results is that the indirect support measures, such as tax relieves within free economic zones, are found to be inefficient and could not be used as the key instrument of the stimulation of the innovative activity of the Ukrainian enterprises.