Liosten Rianna Roosida Ully Tampubolon, Slamet Riyadi, Edy Widayat
Bangkalan coastal style hand-drawn batik is a regional leading creative industry that has experienced difficulties in industrial development during the Covid-19 pandemic. Because marketing relies more on direct interaction with buyers, social distancing policies, Large Scale Social Restrictions (or PSBB), and Enforcement of Restrictions on Community Activities (or PPKM) also impacted the decline in sales volume. To survive, innovation strategies are needed to increase competitive advantage. This study aims to analyze the innovation strategy, including product innovation, marketing, technology, and cooperation, to increase competitive advantage. Data were collected through in-depth interviews, observation, and documentation. The results indicate that innovation strategies can increase competitive advantage, and hand-drawn batik SMEs has enormous development potential. Government intervention affects Small and Medium-sized Enterprises (SMEs), in this case, Bangkalan coastal style hand-drawn batik, to be able to carry out various innovations.