ABSTRACTThis study aims to analyze innovation diagnostic in micro, small, and medium enterprises in Depok. The measurement of this innovation process refers to the measurement of Innovation Diagnostic Diamond proposed by Mazzarol and Reboud (2006), measuring the innovation capacity of the company in terms of market, innovation, strategy, and resources. The data are collected through questionnaires distributed to Micro, Small, and Medium Enterprises (SMEs). The SMEs selected as samples of this study is 99 SMEs in Depok and 112 SMEs in Solo. The findings of the study show SMEs as an active innovator by presenting the profile of SMEs and the perception of the context of existing innovations. The obstacles in innovation learning are related to human resources, the implementation of technology and the access to capital.
