strenghtening role of technology and innovation a s driver for economic growth and competitiveness

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Strenghtening Role of Technology and Innovation As Driver for Economic Growth and Competitiveness Rachmawan Budiarto Jurusan Teknik Fisika – FT UGM Magister Teknik Sistem – FT UGM Pusat Studi Energi – UGM Pengembangan UMKM – LPPM UGM rachmawan-sustainability.blogspot.com [email protected]

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Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness. Rachmawan Budiarto Jurusan Teknik Fisika – FT UGM Magister Teknik Sistem – FT UGM Pusat Studi Energi – UGM Pengembangan UMKM – LPPM UGM rachmawan-sustainability.blogspot.com - PowerPoint PPT Presentation

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Page 1: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

StrenghteningRole of Technology and InnovationAs Driver for Economic Growth and

Competitiveness

Rachmawan Budiarto Jurusan Teknik Fisika – FT UGM Magister Teknik Sistem – FT UGMPusat Studi Energi – UGMPengembangan UMKM – LPPM UGM

[email protected]

Page 2: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Table: Share of Employment by Sector Share (%) Percent of Total Employment

Indonesian Statistic Agency (BPS)-Statistics

Page 3: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Spatial distribution of SMI by number of firms in Indonesia, 1996 & 2006

Source: Calculated from BPS (2000; 2009b)

• The figures show that SMI was still geographically concentrated in Java during 1996-2006 (red circle).

• There are no significant changes of spatial distribution during 1996-2006. The yellow circles show that Bengkulu and Central Kalimantan moved to medium level in 2006.

1996

2006

(LPPM UGM, 2009)

Page 4: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Micro, small and medium enterprises account for 99% of all enterprises and employ approximately 79% of the workforce, however small enterprises account for only 41% of GDP and medium enterprises16%.

(Basri dkk,, 2008)

Page 5: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

The macroeconomic environment, poor infrastructure, unfavorable business climate, and corruption have compounded effects on entrepreneurship and small and medium sized enterprise (SME) development.

These external constraints of business development result in SMEs working outside the formal sector further limiting access to finances, markets and participating in value chains.

(Basri dkk,, 2008)

Page 6: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

As a result the SME sector in Indonesia lacks the human capacity, technology inputs, and advanced and efficient production strategies.

SMEs are also increasingly unable to compete with larger firms and SMEs in more advanced economies in Southeast Asia.

(Basri dkk,, 2008)

Page 7: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Sumber: Lampiran KEPMEN No. 111/M/Kp/IX/2004 Sumber: Lampiran KEPMEN No. 111/M/Kp/IX/2004 Visi IPTEK 2025

Global Competitiveness IndexEvaluating countries ability in economic competition in two criterias: Macro: Growth Competitiveness Index and Micro: Business Competitiveness Index

Low rank in Growth Competitiveness Index partly caused by lack of capability in technology area

Year 2009Indonesia: rank 55 from 134 countriesBrunei nomor 39, Thailand 34, Malaysia 21, Singapura 5

Global Competitiveness Index(World Economic Forum)

Page 8: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Development & Transformation of Enterprise

Years

Resource Drive

Investment Drive

(Capital)

Innovation Drive

(Knowledge)

Modified from Taiwan Ministry of Economic Affairs, 2008

Page 9: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness
Page 10: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Years

Resource Drive

Investment Drive

(Capital)

Innovation Drive

(Knowledge)

innovation in SME

Page 11: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Years

Resource Drive

Investment Drive

(Capital)

Innovation Drive

(Knowledge)

innovation in SME

innovation

regional

competiti-veness

national

competiti-veness

better life

economic growth

Page 12: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

TUGAS

Page 13: Strenghtening Role of Technology and Innovation A s Driver for Economic Growth and Competitiveness

Proposal Pengembangan

SWOTStrategi Jangka Pendek

Strategi Jangka

Menengah

Strategi Jangka Panjang

Teknologi

Proposal Pengembangan

SWOTStrategi Jangka Pendek

Strategi Jangka

Menengah

Strategi Jangka Panjang

Teknologi

Teknologi:TujuanCara KerjaPotensi Hambatan Aplikasi

Garis bawahi: INOVASI(bedanya dengan cara selama ini)

TUGAS: 1) Cetak Proposal, 2) Cetak Presentasi 10 slide, 3) CD (Proposal + Presentasi)