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The main idea is that - everything that has its T2 counterpart (whether there is a T2 variant of an item can be seen in its «Info -> Variations» ), and if you have a BPC (BluePrint Copy - a copy of the drawing) of it, can be «invented». As a result of certain actions it is possible to get a T2 BPC from the initial drawing. Naturally, this requires special skills, materials, and of course, a production line — a line for Invention at some station or POS.
What specific materials and items are necessary - are all seen in the BPO's (BPC's) Bill of Materials — under the Invention tab. Also, a Decryptor and a sample of the prototype would be very useful. There are 4 different parameters important for inventing - the chance of successful completion of the procedure, the number of Runs (uses) for the finished T2 drawing, ME (Material efficiency) and PE (Productivity efficiency) of the finished BPC. The latter 2 parameters affect the amount of waste in the production and the rate of production of the desired T2 object. These parameters differ for the ships and modules. But the most important, of course, is the chance to succeed in obtaining the desired T2 BPC. In general, all these parameters are affected by the decryptor, and for the number of Runs, the Runs of the source drawing are important. For the chance of success, important are the levels of skills needed for Invention, and the so-called Meta level.
Meta level is a pretty tricky parameter, different for different modules (and for the ships it cannot be viewed and is considered equal to either 0 or 1). It can be viewed in the Info - Attributes of a module, or in Info - Variations - Compare. There are also some limitations realated to the Meta Level — it makes sense to invent only the items with Meta Level from 0 to 5.
There are also implants to increase the efficiency of inventing, but still, a major role here play the skills and decryptor.