The purpose of this paper was to assess the product innovation performance (PIP) in small and medium-sized enterprises (SMEs) in the Malaysian manufacturing sector. The study focused on this sector because of the high percentage of them was involved in product innovation activities. The present study has assessed the actual result and discussed the findings on the most innovative manufacturing industries in Malaysia. The research methodology used includes the research design approach, population and sampling techniques, selection and administration of questionnaires, organizing and analyzing the data. Findings showed that the electrical and electronics (E&E) industry achieved superior PIP. These research findings contribute to the stream of research on innovation particularly in the light of research context and conceptualization. The findings of this research also provide important contributions for practitioners and policy-makers in developing policies and strategies for promoting SMEs.
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