Proceedings of 7th Asia-Pacific Business Research Conference 25 - 26 August 2014, Bayview Hotel, Singapore ISBN: 978-1-922069-58-0 The Key Success of Product Innovation in Four to Five Star of the local entrepreneur, One Tambon (Sub-District) One Product (OTOP) in the Northern of Thailand Raumporn Mala* and Boonthawan Wingwon** This research objectives were: 1) to explore the product innovation in four to five star of One Tambon One Product (OTOP) , which was the locally made and marketed products of each Thai Tambon, i.e. sub-district, entrepreneurs in the Northern region of Thailand; 2) to investigate the key success antecedent factors to build up the innovative products of four and five star of OTOP entrepreneurs and lastly 3) to verify antecedent variables comparison as a key success of four and five star of OTOP innovation. The samples of this study were entrepreneur leaders, group clusters, other relative group clusters and OTOP customers. The research methodology was Participating Action Research, i.e. PAR. The research data was collected using the observation, in-depth interview, focus group discussion, sub-group meeting and workshop. The data was briefly analyzed and synthesized by using descriptive statistics data for the quantitative data, while the qualitative data was analyzed by using the data synthesis and triangulation. The research results revealed that the product innovation in four to five star of OTOP entrepreneurs was the incremental innovation in all a large array of OTOP, namely traditional handicrafts, cotton and silk garments, pottery, fashion accessories, household items and processed foods from old products to created new products. The additional innovative product from the existing craft product was to raise sales and profitability from the product attraction innovation. The adoptive and adaptive innovation from the variations on trend of product ideas, knowledge, devices and artifacts were to meet the trend of global brand innovation. The open innovation with the targeted research and development collaboration such as the government co-financed development organization, university partnerships, and Non Governmental Organizations. The finding on the antecedent factors to construct four and five star of OTOP product innovation were consisted of two dimensions from internal and external entrepreneur factors with four components, i.e. knowledge ability, marketing strategy, technology sourcing, network alliance and budgeting investment. In the final research result showed that when comparing between four and five star OTOP, the antecedent key success factors of product innovation were the mixed innovation factors, application of technologies and knowledge data which were varied on both scale and level between these four and five star entrepreneurs. Key words: Product Innovation, Entrepreneur, Key success factor _______________________________________________ Raumporn Mala* and Assoc. Prof. Boonthawan Wingwon** Faculty of Management Sciences Ph.D. Program Lampang Rajabhat University, Thailand *Corresponding author. E-mail: rareerak@yahoo.com