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Abstract
The purpose of this study is to examine the effect of product innovation on SMEs in the
classroom through competitiveness. The population in this study were employees of SMEs
indo burger which amounted to 150 people, and all samples of research. So this study is
included in the Census study. Data obtained from respondents' perceptions are analyzed
descriptively with structural equation modeling using AMOS application. The result of
research stated that product innovation influence to competitiveness, product innovation
influence to SME class and product innovation influence to SMEs to class through
competitiveness. For further researcher it is suggested to review research related to ukm
up grade by adding inhibiting factors of product competitiveness.
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