With new competitive environments, innovation is more necessary to survive severe competitions than ever. However, most Small and Medium(SM) businesses are used to be short of professional staffs, money and equipments for performing various innovations(ie., technological or administrative innovation, product development or Process development, and radical or incremental innovation). Many students have suggested that incremental innovation is more adequate than radical innovation in SM business. The purpose of this paper is to find antecedent factors In promote employees' Incremental Innovation Activities(IIA), In analyse moderating effects of ability and attitudes, and to test the difference of IIA-level by ability(or attitudes) and 11 independent factors. Each IIA-level by 5 variables of 11 independent variables-job variety, importance, identity, communication, performance dependency-is found to be significantly different in high-ability group affirmative-attitude group.