Transforming MSMEs through Innovation and Technology: Driving Growth and Sustainability in the Digital Age

Abstract

This study aims to analyze the role of innovation and technology in the transformation of MSMEs and provide policy recommendations to support the development of MSMEs. This research uses a descriptive-analytical approach by conducting literature reviews and case studies. Data was collected through secondary sources and analyzed using a qualitative approach. This research identifies that innovation and technology can improve MSMEs' market access, operational efficiency, product development, and productivity. E-commerce, digital marketing, business management software, and cloud computing were identified as essential tools in transforming MSMEs. Policy recommendations include improving access to resources and financing, developing digital infrastructure, digital skills training, and creating a supportive regulatory environment. This research provides a better understanding of the importance of innovation and technology in MSME transformation and can present relevant policy recommendations to support the development of MSMEs.