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The paper aims to recognize whether family firms that introduce the creative ideas of their employees are more innovative than the other family firms, i.e. if they introduce more products, processes, marketing, and organizational innovations. Moreover, it explores the relationship between the innovation of family businesses and their involvement in activities that stimulate innovative thinking by building a trusting workplace climate, driving employees’ development, and supporting team integration. The study is based on the primary research which was conducted in Poland on a sample of 353 family firms. The statistical analysis of the research results shows that family firms that implement the creative solutions of their employees introduce significantly more product innovations than other family businesses. However, there are no differences between these two groups of family firms regarding organizational, process, and marketing innovations. Our analysis also revealed that: (i) supporting employee development is an independent factor influencing the product, process and organizational innovation of family businesses; and that (ii) building team integration by the company is an independent factor that impacts process innovation.