The research objective was to understand the main reasons that would impel firms to innovate. The firms analyzed in this study were medium-size firms of the plastic manufacturing sector in Chile. After the analysis of the theory related to technological innovation, a model of the drivers for technological innovation was developed and a set of hypotheses was proposed. A questionnaire was designed covering several factors that could influence the tendency of firms to engage in technological innovation activities. According to the data, the most influential factors that would encourage innovation in the set of firms studied are a high degree of competition in the industry, the availability of qualified workers, and a strategic relationship with customers.