The aim of this study was to analyze the reasons affecting the failure of innovative business activities in Sanandaj. The population of this research consisted of 150 managers and experts who did not have innovation in their businesses or had some kind of unsuccessful experience in this field. Mostly, the activities of these businesses were in the field of metal industry, packaging, textile, wood and automotive downstream industries. Among this population a sample of 105 people were chosen by using simple random sampling method. The aim of this study is functional and the data collection was descriptive and correlational. The main tools for collecting data were library resources and standard innovation failure factors questionnaire Wyckoff, and innovation questionnaire, on the basis of Likert scale. Data obtained from the questionnaire were analyzed by using descriptive statistics (mean, percentage, and standard deviation), inferential statistics (Pearson correlation and Structural Equation Modeling (SEM)) and SPSS and AMOS software. Results of the conducted analysis showed that all six factors are effective in the failure of innovative business activities in the city of Sanandaj. The results of Structural Equation Modeling indicated that poor management is more effective than other factors in the failure of activities.
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