Description: The decision for detailed development and introduction of a certain innovation should be preceded by the evaluation of its potential. The criteria for such evaluation are summarized in the following groups: consumer interest; innovation activity; prospects; realisation; competitiveness; legislative requirements; economic factors; risk and uncertainty. The initial potential of the innovation is determined on the basis of expert assessment for each criterion. Different possible ways of development of the current potential during the market life cycle of the innovation are presented in the paper