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

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 (red circle). There are no significant changes of spatial distribution during The yellow circles show that Bengkulu and Central Kalimantan moved to medium level in (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. (Basri dkk,, 2008)

Sumber: Lampiran KEPMEN No. 111/M/Kp/IX/2004 Visi IPTEK 2025 Global Competitiveness Index Evaluating 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 2009 Indonesia: rank 55 from 134 countries Brunei 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

innovation in SME Innovatio n in mass scale regional competiti -veness national competiti -veness better life economic growth

comprehensiv e approach for bussiness incubator Many other tools.

Proposal Pengembangan SWOT Strategi Jangka Pendek Strategi Jangka Menengah Strategi Jangka Panjang Teknologi TUGAS

Teknologi: Tujuan Cara Kerja Potensi Hambatan Aplikasi Garis bawahi: INOVASI (bedanya dengan cara selama ini) TUGAS: 1) Cetak Proposal, 2) Cetak Presentasi 10 slide, 3) CD (Proposal + Presentasi)