The study of influence factors of cyclical fluctuations is of major importance for a country’s economy. In the present context, of the new economy, where the emphasis is on new technologies, and information is the main product and resource of the economy, innovation is one of the most important factors among the ones which influence the economic activity fluctuations.

As part of a larger paper, this study is set to emphasize and explain the influence of innovation on the cyclical fluctuations in Romania between 1995 and 2009.

The following analysis indicators were used: the ‘innovation’ factor is represented by Research & Development expenses and by the number of people with internet access, whereas the economic activity fluctuations are represented by the fluctuations in the real GDP.

The research starts with the conceptual boundaries regarding innovation, with an emphasis on Joseph Schumpeter’s theory, then, the influence of innovation on economic activity fluctuations is underlined through a quantitative analysis of the three indicators mentioned above and through an econometric model.

The results of the research underline Romania’s economic status, the scale on which new technologies have entered the Romanian market and the way in which the fluctuations of the economic activity are closely linked to innovation.