The paper analyzes the existing theories and models of leadership and innovation in the organization and raises the question of whether and how the mentioned models can be applied in order to change the level of innovation within the organization. The purpose of the paper is to try to demonstrate the link between leadership style and innovation in the enterprise, starting from the assumptions and problems encountered in encouraging innovation in companies in the Republic of Croatia. The scientific contribution of the research is to stimulate innovation that takes into account the internal and external environment necessary for the realization of innovative entrepreneurship. So far, some topics have been elaborated that affect the ideas of individuals and the innovativeness of organizations. It is based on the basic assumptions of the internal and external environment of an organization that is essential for the development of ideas and creativity within the organization. The paper uses methods of analysis of existing concepts of leadership and innovation and the synthesis of newcomers. This research can be an introductory phase of a larger research as a preparation for the study of the applicability of models of successful companies all around Croatia, which have already been highlighted as innovative enterprises in their current work.