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
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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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
Table: Share of Employment by Sector Share (%) Percent of Total Employment
Indonesian Statistic Agency (BPS)-Statistics
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)
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)
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)
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.
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)
Development & Transformation of Enterprise
Years
Resource Drive
Investment Drive
(Capital)
Innovation Drive
(Knowledge)
Modified from Taiwan Ministry of Economic Affairs, 2008