Book excerpt: This working paper aims to present the specifics of innovation in the Polish health industry through the prism of the experiences and opinions of a representative group of 42 companies from both the pharmaceutical and medtech sectors. Through analysis of in-depth interviews, it aims to illuminate the legal, economic and social mechanisms and phenomena that determine innovation in this sector. The survey examines which areas of the Polish health sector are most innovative, the understanding of innovation that prevails in the sector, and the characteristics of R&D activities carried out there. Subsequently, the study explores the general impact of intellectual property, and particularly of patent law on innovation, in the Polish health sector. Finally, it surveys the other economic and legal instruments currently stimulating innovation and how legal regulations and governmental policy could be modified to create an optimal pro-innovation environment. The conclusions include short legal and factual background of innovation in the Polish health sector, the summarized results of the conducted analysis and final comments concerning the level and culture of innovation within the examined industry.