This study is an investigation of the relationship between selected structural characteristics of the community and innovation among cities. Four major Structural characteristics were chosen to serve as independent variables. These independent variables were community differentiation, community poverty, community maturity and type of local government. Innovation, as measured by applicant status to the federal Urban Development Action Grant Program, served as the dependent variable. Analysis of the data indicated support for several of the postulated hypotheses. The structural characteristic community differentiation was found to be significantly related to applicant status. For the structural characteristic community poverty no significant relationship to applicant status was observed. Community maturity revealed a significant relationship to applicant status. Finally, for the structural characteristic local form of government a significant relationship with applicant status was observed. Based on the interpretation of the findings, an original typology of innovation was developed. This typology included planned revitalizing innovation, social enhancing innovation, entrepreneurial stimulating innovation, and needs inducing innovation.