The article explores how technological advancements and innovation impact the competitiveness of businesses in Northern Greece. It focuses on small and medium-sized manufacturing enterprises in the region, analyzing factors like technological capacity, industrial structures, and human capital. The study shows that businesses that invest in technology and innovation perform better economically compared to those that focus solely on reducing costs. Upgrading technological capacities leads to higher value-added production and stronger competitiveness. The research highlights the importance of dynamic strategies for improving productivity through technological advancements to stay competitive in the global market.