This article investigates the differences in the mechanisms and strategies conducing to the introduction of new processes and products in Italy and Europe. After a review of the relevant literature, three models are proposed and tested in order to identify the different business strategies and innovation inputs associated to the successful implementation of new products and new processes. The empirical analysis uses innovation surveys (CIS 2-3-4) data at the industry level for 22 manufacturing sectors and 17 services sectors for 8 European countries, with a specific focus on the Italian case. The analysis shows that while the two types of innovation have a strong complementarity and may be present at the same time in a large number of innovative firms, product and process innovations are the results of different innovative inputs and different strategies pursued by firms.