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Technological innovation is the main factor affecting global competitiveness of the companies. The competitiveness and the profitability of the companies mainly depend on their ability of the technological innovation providing for the firm competitive advantage. This paper mainly investigates the role and importance of technological innovation in the firm level in order to analyse the technological determinants of the competitiveness and the profitability of the companies. The distinguished features of this study is to show that as long as technological innovation environment in the firm level improves, then the competitiveness and profitability of the firm increases.