STI Policy and Management Journal
Vol 11, No 1 (2026): STI Policy and Management

Future of Indonesia’s Industrial R&D using system dynamics

Erman Aminullah (Scopus ID : 55331157100 National Research and Innovation Agency)



Article Info

Publish Date
15 Jul 2026

Abstract

This study attempts to explore the future of Indonesia's industrial R&D intensity based on historical data trends. A systemic approach and system dynamics modelling were used to explain Indonesia's high reliance on public funding for R&D activities. The simulation results show that: i. the policy of increasing industrial R&D investment can be implemented by transferring research outputs from research institutions to the industrial sector, as well as increasing R&D investment in the mission-oriented industrial sector. This is a challenging scenario for the most ambitious future R&D trends by 2045. ii. Limited R&D spending can have a tangible economic impact if public R&D organisations implement researcher performance evaluations based on R&D results' application in industry. Transferring government R&D outputs to the industrial sector will boost future industrial R&D in a moderate scenario by 2045. iii. Prolonged reliance on government R&D funding has the unintended consequence of lock-in dependence on public R&D funding, and further delays in increasing industrial R&D trends are most likely in a BAU scenario by 2045. The long-term policies should be executed integrally in realizing Indonesia’s transition to industrial R&D. This study's scientific contribution is a model of lock-in dependence on public R&D funding based on historical data.

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Journal Info

Abbrev

stipm

Publisher

Subject

Description

The STI (Science, Technology and Innovation) Policy and Management is a scientific journal discussing theoretical and practical issues in science and technology policy for economic competitiveness, research and development management and innovation management. The journal welcomes manuscripts from ...