The study presents an analysis of innovative activity in the micro, small and medium tourism enterprises in the city of Cuenca. The information obtained corresponds to the activities of product, process, organization and marketing innovation, and its effect on the profitability and competitiveness of the enterprises during the years 2011 and 2012. The results of the analysis show that tourism MSMEs have an average degree of innovation, while most innovations correspond to organizational innovation, as well as predominates the introduction of incremental innovations in product, process, organization and marketing. Finally, innovation activities did not generate a positive impact on the profitability.
