Currently, street vendors face many problems, including the issue of location, lack of empowerment, and skills, even though street vendors contribute to economic growth. Street vendors need competency and innovation capabilities to develop. The research investigates the effect of competence on the innovation ability of street vendors. They conducted this research in the City of Sungai Penuh, Jambi Province, Indonesia, in a group of food vendors with a total sample of 63. Data collection was questionnaires and interviews. The results of the study contributed theoretically and practically. The theoretical contribution explains that competence has a positive influence on innovation ability. The study's results found that 7 (seven) competencies could increase the ability to innovate. The first was the ability to analyze and search for information which led to the ability to adapt products to the needs or tastes of consumers. The second was competence related to communication skills, which led to communication promoting products directly and indirectly. Live through social media. Thirdly, self-confidence leads to the courage to take action to improve product quality. Fourthly building networks leads to building forums or groups to share knowledge. Fifthly, social mobility leads to easy access to information to broaden understanding. Sixth, negotiating skills lead to influencing consumers and compiling planning according to market needs. The seven ability to solve problems leads to knowledge skills that face challenges. The practical contribution is the basis for the government to create empowerment programs to increase the competence of street vendors to generate innovation.