<![CDATA[Acoustic music instruments, particularly violins, have high market value and export potential; however, the violin industry in Mancasan Village, Sukoharjo, faces sustainability challenges due to limited access to modern production technology, weak business management skills, and low innovation capacity, while craftsmen must balance commercial demands with artistic quality. Despite these constraints, limited research has examined human capital as a strategic intangible asset in strengthening innovation within traditional industries. This study aims to analyze the application of human-capital-based innovation to enhance the competitiveness of the local acoustic violin industry. The research employed a modified Research and Development approach based on the seven steps of the Borg and Gall model, with data analyzed using the Three Box Method to measure changes in knowledge, skills, and entrepreneurial intention following training and mentoring interventions. The results indicate significant improvements in all three aspects, with knowledge increasing by 84.61 percent, skills by 81.37 percent, and entrepreneurial intention by 85.59 percent, all categorized as high. The integrated innovation model combined intellectual capacity development with entrepreneurship training, Android-based financial systems, web commerce, and gallery management, resulting in improved technical competence, structured financial management, digital marketing adoption, and enhanced product competitiveness. In conclusion, human-capital-based incremental innovation effectively strengthens industrial capacity and business sustainability in traditional SMEs, supporting SDG 9 through innovation-driven industrial upgrading and SDG 8 by enhancing productivity and sustainable economic growth within local Small and Medium-sized Enterprises (SMEs).]]>
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