In now-a-days competitive global markets, organizations are required to become more flexible and adaptable in order to survive in the rapidly changing business environment. The ability to innovate is touted to be the key factor for ensuring the continuity and increased competitiveness of organizations. However, many attempts to create and implement innovations in organizations turn out to be unsuccessful due to the fact that organizational culture is unsuitable for the innovation effort. This thesis contributes to the discussion of innovation supportive culture by identifying the most essential aspects of organizational culture related to organizations’ ability to innovate. It is argued, that despite the extensive research on the subject of organizational culture, the terminology and definitions are found to vary greatly within researchers, thus complicating the research subject. Nevertheless, organizational culture, and especially it’s aspects of innovative values, organizational climate and leadership, are identified as crucial components for successful creation and implementation of innovations.