Improving Performance and Competitive Advantage through Innovation and Design of UMKM Products

Abstract

Business competition continues to increase, so that MSMEs must continue to have a competitive advantage and performance. The advantages of an economy are not only derived from technology, let alone natural resources. The latest sources of competitive advantage are product innovation and design. Micro, Small and Medium Enterprises (MSMEs) as part of the economy must also increase their competitiveness by making innovations. Competitive advantage based on innovation and product design should be prioritized because it has durability and a longer period of time. Likewise, the MSME group in West Sumatra tries to preserve local wisdom with various regional characteristics, but still has many limitations including facilities and ideas for business development. The group of wisdom preservation craftsmen is one part of the creative industry sub-sector in the form of the craft creative industry which can be integrated through micro, small, or medium enterprises (MSMEs). This is also directly proportional to the existence of Presidential Regulation Number 28 of 2008 concerning National Industrial Policy which is also regulates the creative industry for the development and determination of the guideline map. Therefore this research aims to improve the performance and competitive advantage of MSMEs through innovation and product design. This research is included in TKT 2, namely formulating the concept of technology and its application to the object of UMKM