<p>Innovation capability (IC) is widely recognized as a key factor in competitiveness, and its development plays a fundamental role in the growth of Small and Medium Enterprises (SMEs). However, the literature on its internal determinants remains conceptually fragmented or focuses only partially on their influence. The objective of this study is to identify and classify the internal factors that influence the innovation capability of SMEs. To this end, a systematic literature review was conducted, supplemented by a bibliometric co-occurrence analysis. Based on 46 selected articles, a coding and harmonization process identified 30 internal determinants of innovation capability in SMEs, classified into organizational and managerial factors. Among the most relevant from the perspective of empirical validation are those related to digitalization and technological infrastructure, human and intellectual capital, organizational culture, leadership, knowledge sharing and knowledge management system. The results suggest that innovation capability develops through the interaction between organizational conditions that build the internal knowledge base and managerial factors that integrate and apply knowledge. This study contributes to the literature by offering an integrative taxonomy and a framework that connects internal knowledge assets and managerial factors to IC development. It also provides managers of SMEs with a practical perspective on how to strengthen innovation capability through the combined development of internal resources, organizational conditions, and managerial practices.</p>