In the paper, the main elements of the management of product innovation projects in the field of microprocessor systems for the railway industry are identified. The advantages and drawbacks of methods, tools and techniques used for the management of innovation projects are discussed. Also, their influence on efficiency, quality, safety and effectiveness of the management of this kind of projects is described. Based on the available literature sources, contemporary tools and technology means enabling development of safe (from the functional point of view) microprocessor systems as well as the significance and influence of formal and legal factors on the way of projects execution are presented. The conducted analyses result in recommendations for necessary changes and improvements of the execution phase and identification of key success and threat factors in the management of innovation projects for the railways.