The aim of this research paper is an investigation of innovation and heritage entrepreneurship development in the South Wales Valleys. It is particularly concerned with opportunities to develop industrial heritage tourism enterprises in the South Wales Valleys, with special reference to Merthyr Tydfil. The research is based upon eight case study structured interviews and collated data to produce, in combination with the contemporary literature, four key themes to achieve a sustainable regeneration scheme for innovative heritage entrepreneurship development. These key themes are funding challenges, cohesion of the community, a strategic approach, and networking and partnerships. This analysis has shown the growing significance of non-environmental sustainable development and socio-cultural regeneration. Throughout the main themes that have been analysed, the importance of innovation and heritage entrepreneurship development has become particularly apparent. This has proved that they are practically inseparable due to the fact that they need to work together in order to provide a sustainable approach for regeneration to work effectively in the long-term. It has become apparent that a strategic approach is essential, for it is the only way forward that is sustainable in order to develop heritage tourism enterprises for future generations.