The article compares selected results form the South African Innovation Survey 2005 with those of EU member states from the fourth round of the Community Innovation Survey (CIS4). About 54% of South African industrial enterprises engaged in innovation activities between 2002 and 2004 compared to an average of 42% for European countries. South African enterprises reported that the share of turnover from new or significantly improved products was 10.1% compared to an average of 8.6% for EU countries. The most important reason for both EU and South African enterprises to engage in innovation activities was to improve the quality of goods and services. In general South African firms appear to be engaging in innovation activities and have much in common with EU enterprises, even to the point of sometimes outperforming them.