Abstract:
Finding a model for managing MSME innovation for export products from the perspective of business actors and the government is the aim of this research. This study uses a qualitative descriptive method, which means the process of exploring and understanding the meaning of individual and group behavior. Data collection techniques with triangulation, data analysis is inductive or qualitative. The object of research is UKM in Banyuwangi Regency with a total sample of 25 UKM. The results of the study show that the obstacle faced when exporting is the MSME management model, so innovation benchmarking is necessary. The keys to continuous innovation for MSMEs are product uniqueness, quality control, and timely delivery. Innovations in MSMEs that have an impact on sales turnover are mostly based on their own initiative and according to market demand. The local government has provided a platform for promotion for MSMEs but it is
rarely used and a small number of MSMEs have promoted through social media. The government plays a role in strategic policies and technology utilization, strategic policies in the banking sector, and strategic policies on export procedures. The most important thing that needs to be considered by all parties is innovation management.