Impact of Innovation on the Firm's Performance with reference to MSMEs in the Coastal Districts of Andhra Pradesh, India

Abstract: Businesses that innovate on a regular basis have a long-term competitive advantage over rivals in their industry that do not innovate. This is due to the fact that innovation ultimately results in better profitability than non-innovators, as it leads to improvements in both products and processes, and enables faster growth. In the context of Micro, Small, and Medium Enterprises along the Coastal regions of Andhra Pradesh, the primary purpose of this research was to investigate the relationship between innovation and firm’s business performance. The results indicated that innovation and the firm’s performance were significantly correlated with each other. Keywords: Product Innovation, Firm’s Performance, MSMEs, Product Quality JEL Classification Number: D81, O3