Innovation is of utmost significance to modern lines of business growth and development. Entrepreneurship and innovation are two pervasive concepts and there are gaps in the understanding of the interaction between entrepreneurship and innovation.   For businesses innovation has the potential to boost productivity and increase the ability to follow price differentiation and enhance profits. In today’s globalised world, tourism has become an important source of revenue for many countries including India. Innovative entrepreneurship is necessary for overcoming the challenges in various forms of industries including tourism and its outcomes are the different kinds of tailored products and services. Entrepreneurship by the development of new concepts and initiatives to gain a competitive edge is a key strategy as companies realign their brand, vision and uniqueness. The key message of this paper is initiatives on innovative entrepreneurship in tourism. It also shows vital role of entrepreneurship in tourism to address problems of environmental degradation and climate change in the context of globalization. 
KEYWORDS: Innovation, Entrepreneurship, Competitive Edge, Employment, Tourism Entrepreneurs. 
 
Introduction Research in the fields of innovation and entrepreneurship is still in developing stage. Innovation is central to modern lines of business growth and development. Entrepreneurs can contribute to economic development by facilitating the reallocation of resources from less to more productive uses by performing the strategies of ‘cost discovery’, ‘gap filling’ and input completing process. Entrepreneurship and innovation are two of the most pervasive concepts of our time, yet there are gaps in our understanding of the interaction between entrepreneurship and innovation. According to Morrison (1998) ‘entrepreneurship, primarily, involves the process of creating value by bringing together a unique assembly of resources to create or exploit a market opportunity’.  Hence innovative entrepreneurship is necessary for overcoming the challenges in various types of industries and its outcomes are the various forms of innovation.

Entrepreneurial initiatives generally develop new means of production, new products, new markets, new methods of manufacturing or distribution, new sources of material, or new forms of organization according to Schumpeter, 1934.In addition to various economic benefits, entrepreneurship in new forms can also prove hugely beneficial in social upliftments. The tourism industry is a large and varied field and it provides challenging and exciting career opportunities for people. Human resource development is a thrusts area for the tourism industry anywhere in the world as it is a service sector that is largely people driven and the products are experience centric. Trained manpower, the so called ‘human capital’ makes the experience more rich and delightful for tourists. Kerala has made concerted