Micro small medium enterprises (MSME) are the backbone of the Indonesian economy,and even the world. The purposed of this study was to test empirically the effect ofinnovation on the competitive advantages of MSME sector food and beverage industry inBandung Raya. The research used explanatory research to clarify the relationshipbetween the study variables and test hypotheses. The sampling technique used is randomsampling proportionate area. The sample used in the study amounted to 152 owners ofMSME. The results of the study are significant effect on the competitive advantage ofinnovationKeywords: innovation, competitive advantage, Micro small medium enterprises
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