This study analysis knowledge transfer between businesses is facilitated by
their supply chain relationship. The role of creative industry in making innovation in
their businesses performance. Transfer knowledge in supply chain as a independent
variable consist of creative employment, information from customer, information from
supplier and creative customer. Innovation as dependent variable. Most of creative
industry had used supply chain to get competitive advantage. Sample is collected with
purposive sampling method to creative industry in central java. Total samples are 133
creative industries. The result of study upon creative employment, information from
customer, information from supplier and creative customer variable to the innovation
indicated that only creative employment had level of significant of 5% influencing
innovation. This is indicated that between companies in supply chain not yet open each
others.