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The Linkage among Technology-Intensive Manufacture Industries in East Java by Input-Output Analysis Approach Sari, Karlina; Arifin, Mohamad
Journal of S&T Policy and R&D Management Vol 12, No 1 (2014): Journal of S&T Policy and R&D Management
Publisher : Pusat Penelitian Perkembangan Iptek, LIPI

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Abstract

The economic crisis in 1998 had caused the decrease in economic growth up to 13% and particularly for industrial sector 11.4%. This shock encouraged local governments, including East Java to actively promote industry by utilizing the available natural resources; processing them into products that have value added. The study intends to see the linkage among technology-intensive industrial sectors before the economic crisis (1994) and after the economic crisis (2006). The analysis method used in the study is input-output (I-0) analysis, using the dispersion power index and the degree of sensitivity index from the multiplier matrix. The classification of manufacturing industry is based on its technology intensity, i.e. high-tech, medium-high-tech, medium-low-tech, and low-tech. The result of the study shows that the seed industry sector in 1994 is the industries with high backward and forward linkages, i.e. the group of basic metal and metal goods industry, and non-pharmaceutical chemical industry. In 2006, however, both industries had only high backward linkage. Furthermore, the industrial group with no potential is the industry with low backward and forward linkages in 1994, i.e. food, beverages, and tobacco industry. Nevertheless in 2006 this low-tech intensity industry became a potential, together with timber and rattan industry, and pharmaceuticals and traditional medicine industry. In 2006, the group with less potentials was the low-tech industry like textile, textile product, leather and footwear industry; and the medium-low-tech industry like oil refining industry; as well as the high-tech industry like, railway, transportation tools and its restoration industry. The shift occurred due to the factors of raw material use (local/import) and capability to produce value added products.
THE DETERMINANT FACTORS OF FRUGAL INNOVATION: THE CASE OF INDIA AND THE PROSPECT FOR INDONESIA Sari, Karlina
Journal of S&T Policy and R&D Management Vol 10, No 2 (2012): Journal of S&T Policy and R&D Management
Publisher : Pusat Penelitian Perkembangan Iptek, LIPI

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Abstract

Tighter competition in global market encourages every firm to innovate to produce high-quality products, but with affordable price for most group of consumers. Some local Indian firms, such as Tata Motor, Tata Chemical; and some foreign subsidiary firms, such as General Electric and Hindustan Unilever Ltd; have been succeeded in conducting innovation, producing technology-based products in more compact size and cheaper price compared to the conventional ones. In academic world, this kind of innovation is known as frugal innovation. Basically, frugal means not only cheap price but also how a product is designed, produced, distributed, and maintained based on its function, in regards with resources constraints. As innovation in Indonesia is often constrained by cost factor, frugal innovation would be appropriate for this country. Macro condition and supporting government policy are highly matters for the implementation of frugal innovation. The objectives of this study are to explore supporting factors of frugal innovation in India and to analyze the prospect of its implementation in Indonesia through comparison of those supporting factors between the two countries. Thus, this study uses comparative analysis. Literature review shows that supporting factors of frugal innovation in India are entrepreneurship, technology-based and innovation-based industry, vast domestic market, dominant low-middle-income population, openness toward foreign direct investment, and government support. Comparing the condition of India and Indonesia, frugal innovation is highly prospective to be implemented in Indonesia if technology and innovation-based industries are strengthened and government provides and implement effective policies.