Abstract: This research examined the impacts of intellectual capital on innovation capability leading to sustain competitive advantage in the context of Thailand industrials. Using the resource-based view of the firms, interconnections of the intellectual capital components and innovation capability were created as ways of understanding sustain competitive advantage. The model was tested using data collected from survey of 62 across different Thailand industrials and statistics based on regression analysis. The variables in model were measured by a number of scale items. Both reliability and validity were demonstrated. Regression analysis showed that components of intellectual capitals (human, structural and relational capital) have positive impacts on innovation capability and innovation capability positively affects sustain competitive advantage. These findings will help managers to design and manage intellectual capitals to enhance the innovation capability in the organization and to increase sustain competitive advantage.