An Innovative Approach to New Product Development in Textile and Diamond SMEs of Surat

The emergence of innovative SMEs has been a distinct feature of Industry in the developing countries. Many of the emerging firms are small and medium enterprises (SME). The Indian Textile SMEs, in particular, have been at the significant of making investment. Thisresearch empirically studied the impact of marketing factorsof the NPD of SMEs. The paper also explores the effect of size of the firm and importance of marketing factors. Based on 532 Textile SMEs of Surat, the paper conclude that all the factors are not equally important in all three stage of new product development by using Small and Medium Size Enterprise (Investment in Plant and Machinery), except the product has competitive advantage, and there is potential marketing channel plans shows importance in all three stages.