The results were revealed at an event at Grosvenor House Hotel earlier this week, which was hosted by well-known BBC presenter and news anchor Huw Edwards.
Wow Stuff beat ten other finalists to this year’s award, which was presented by VP of Orange and T-Mobile allegiance Everything Everywhere, Martin Stiven.
Entrepreneur Peter Jones and Deputy Prime Minister Nick Clegg attended the ceremony. Prime Minister David Cameron also sent a video message of congratulations to the winners, which was played at the event.
In the five years since its launch, Wow Stuff has achieved a sales increase of 2,000 per cent and is predicting sales of £165m by 2013.
CEO of Wow Stuff, Richard North, said: “We’re absolutely thrilled to have won such an iconic award for simply doing what we love. Like every business, it’s a continuous challenge to find ways to innovate whilst still delivering against commercial objectives.
“A few years ago we were seen as newcomers to the toy market, but our desire to evolve and improve has led to phenomenal growth over the last few years. Wow Stuff's culture lives and breathes innovation.
"Our team was recognised not for one individual piece of innovation but for a raft of new initiatives from technology in retail such as our TXT4VID to 'Wow Factor' toy inventions, some of which will launch in 2011. It was fantastic to have been put in the same arena for selection as so many major corporations - to then win is quite incredible.”
North also said the firm is looking to expand outside the UK in 2011, when it will launch a number of new brands to its portfolio.