The purpose of this chapter is to understand social innovation in small family firms in Sweden. The study draws on three Swedish small family firms, exemplifying different types of innovation in these firms. Examples range from incremental innovations to social innovations, illustrating the diversity of innovation in small family firms. These innovations are conceptualized as a continuum of innovations, which is depending on the degree of involvement of owner-managers on the one hand and the degree of involvement of employees on the other hand.