Railway industry competitiveness and productivity growth are based, among other factors, on the capacity of the company to innovate, being railway research a key driver for maintaining Europe at the competitive edge of technical development. In recent years, new business models and commercial strategies are being implemented, offering railway companies new technological possibilities, thus accelerating the innovation (European Commission, 2019). The digital revolution is happening, transforming the way we move and produce. Some sectors such as aerospace or automation have experienced fast and disruptive changes to maintain their competitiveness. However, the railway sector did not experience such fast-disruptive change as other transport modes regarding digitalization, automation and innovation in the whole system. Success in the digital revolution means that the rail industries need to use the best available technologies focusing on people. The managerial and organizational practices adopted by railway entities have considerable significance for Railway's ability to succeed in global competition. One of the challenges for railway entities is to deliver innovative products, offering quickness and flexibility to respond to changing demands from their customers. Non-technological innovations and especially Workplace innovation, have a key role to play in the digitalization and acceleration of technological developments, therefore in the railway sector competitiveness. This draws attention to the importance of innovation climate and employees' commitment aiming at improving staff motivation and working conditions, thereby enhancing labor productivity, organizational performance, innovation capability, reactivity to market change, and consequently business competitiveness. As with any emerging opportunity, there is no established path to follow to activate inclusive growth in railway SMEs to uptake Workplace innovation. To address these issues, RailActivation project develops and tests a research model that covers individual behavior, organizational practices, and process practices of innovation among employees, analyzing the impact of Workplace Innovation on firm performance.