The paper analyses process innovators and non-innovators and their characteristics and strategies. The sustainable urban development is dependent on many factors. One of them is the ability of large companies to adapt to changes. The likelihood of engaging continuous process innovation is higher for larger firms in the Czech manufacturing industry. Large companies are important part of region and their instability can negatively affect the whole region. Being part of a business net (part of a group, innovation cooperation activities) is a positive determinant of process but only in certain stages of innovation process. The public policy aimed at regional technological hubs and networks can provide necessary boost for regional development rather than grants and public subsidies for innovation projects.