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The concept of resource-based view (RBV) and dynamic capabilities theory (DCT) and its role in generation of competitive advantage (CA) and securing sustainable competitive advantage (SCA) had been endorsed in literature. In this research, the authors have analysed and mapped Indian MSMEs from the RBV and DCT perspectives for understanding their position for innovation, cluster functionality and cluster activities. Qualitative research was carried by in-depth interview personally administered with MSME owners and senior managers. The data collected was thematically content analysed. The findings of the study reflected on the type of RENT innovation done by Indian MSMEs, state of the MSME cluster layer and its activity types. Further, this research also classified the MSME firms from a RBV typology. This study was carried out in central India. This research confirmed the theoretical footprints of presence …