Conducted research confirmed that the enterprises which incurred higher expenses on innovations gained higher labour productivity. The level of labour productivity indicator was lower in the enterprises with the lowest and average inputs on innovation than in the group, without innovative activity. The increase of labour productivity in dairy sector was first of all an effect of the change in technical equipment. Technical and organizational improvements affected the labour productivity growth less. Inconsiderable increase of labour productivity in enterprises with the lowest and average inputs on innovative activity resulted from the rationalization of employment. Expenditures on the purchase of fixed assets in this group of enterprises were very low and the technical equipment of labour increased only slightly or there was no change of this indicator