Ruswan Lapandewa
Faculty of Economy and Business, Universitas Airlangga

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Research and Development (R&D) determinantion in the Indonesian food and beverage industry Ruswan Lapandewa; Martha Ranggi Primanthi
Optimum: Jurnal Ekonomi dan Pembangunan Vol. 16 No. 2 (2026)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/optimum.v16i2.16490

Abstract

The main objective of this study is to examine the influence of industrial concentration, PCM, company size, Lcosts, workforce size, and foreign ownership on research and development (R&D) expenditure in Indonesia’s food and beverage industry from 2017 to 2019. The quantitative investigation employed microdata provided by the Indonesian Central Statistics Agency (BPS). The study applied panel data regression and an instrumental variables approach using Stata 14 software. The findings show that internal firm characteristics, including PCM, company size, and workforce size, positively and significantly influence R&D expenditure. Conversely, Lcosts and foreign ownership negatively affect R&D expenditure, while industrial concentration has no significant influence. These results suggest that the government should maintain competitive market conditions, strengthen human resource quality, and formulate investment policies that promote technology transfer, technological adoption, productivity improvement, and sustainable innovation across firms within the industry.