Long‐range Planning to Foster Innovation in Indonesia

Summary

This paper will assess innovation policy as a process of rational planning. The analysis focuses on the new direction and content of innovation policy, as well as on the conditional factors for a successful long‐term implementation of innovation policy. The rational planning on innovative capability should be motivated by the realization of a knowledge‐based economy. Long‐term forecasting of technology and economic growth should support long‐range planning in Indonesia. Learning from the experience of past policies, the future implication for the success of innovation policy implementation in Indonesia should be determined by i) authority of policy execution, ii) synergy of cross‐sectors policy, and iii) efficacy of policy instruments. The key success factor in conditioning the three factors would depend on favorable public support in the form of political will from the government and innovative entrepreneurial spirit from the private sector.

Keywords:

• innovation system
• rational planning
• innovation policy
• policy implementation
• roadmap

Notes

Most parts of this paper are based on my research report entitled Management of Technology, R&D and Innovation: A Policy Perspective. I am indebted to the Indonesian Forum Foundation (YIF) for providing the research grant and the Centre for Economic Development, the Indonesian Institute of Science (PEP‐LIPI) for publishing the research report (forthcoming). Special thanks go to Dr. Kong Rae Lee and the anonymous referee for their comments and critiques to correct and improve the early version of this article. Lastly, I am also indebted to my colleague in LIPI, Mr. Manaek Simamora, for his correction of this article.