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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
The LRDCs urgently need massive own science and technology ST capabilities for creating and shaping their own knowledge and technologies, where ‘systemic’ changes in ST management,
organization and policy as well as broader economic and political structures should be implemented. Elly, 2009 Moreover in coping with the problem of innovation, the government of former developing countries
took active part for the promotion of science, technology and innovation STI. The Korean government took a leading role in RD infrastructure for technology development. Korea built integrated RD estates
for developing technologies at regional levels in 1980s. Lee, 1988 The Turkey government spent significantly to increase public RD expenditure that affected the increase of private RD investment.
Ozcelik, 2008 Then, promoting innovation through techno-park has been becoming the mainstream program of current Indonesian administration.
In case of Indonesia, innovation in the manufacturing sectors generally as the results of learning through “informal experiences” and not through “formal scientific activity or RD intensity” Aminullah
2012, 2014. Modes of learning include: i. learning through working in the production floor as the learning by doing, ii. learning through the use of machinery equipment and production systems as the learning by
using; iii. learning through interaction with users, suppliers, parent companies in the design and modification of product and production process as the learning by interacting; iv. and learning from the
succesfull of past experience as a role model for the future as the learning by modelling. About learning by DUI doing, using, and interacting see also Lundvall 2009
A state of the art in learning was constructed by Kodama that the modes of learning shifted beyond the simple mode of learning by doing toward learning by porting, via learning by using and learning by
integration. In the past, Japan went beyond simple learning by doing toward learning by using in steel making technology, so as to Japan surpassed Germany and the US. Korea went beyond learning by using
toward learning by integration in steel making to catch up Japan in 1990s. In ICT Japan went towards learning by integration in the production of LCD technology then moved towards learning by porting in
numerical control NC technology. A shift from simple learning by doing to learning by using, integration and porting are the results of learning through RD activities conducted by competent researcher in RD.
Kodama, 2014
1.3 Way of understanding the complex problems
The problems containing complex interrelations among infrastructure, innovation and RD need a systemic approach. The creation of innovative product and service through RD in line with inefficient
infrastructure will be less competitive due to high cost of economy. The delivery of efficient infrastructures such as low cost of electricity, rapid handling of custom and port, and smooth transportation, those will
stimulate industry and firm to place the best product and service in supplying the global market. Moreover the best infrastructure will ignite active innovation through RD. Countries with sophisticated
infrastructures tend to have higher RD expenditure, while countries with inefficient infrastructure tend to have less RD expenditure as well as less innovation activities. See Graph 1.
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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
The dynamics of growth and investment in infrastructure and RD was firstly introduced by Senge 1990, it is the state of mutually reinforcing dynamics between economic growth and economic
capacity to grow, where the growth is limited by the internal dynamics of balancing elements inside the system. Mutually reinforcing dynamics is the higher the growth, the larger capacity to grow, then pushes the
growth to be higher. Economy growth is also constrained by balancing dynamics of investment that has its own dynamics. The increase of investment on physical capital takes time to have an effect on growth, but
the increase of investment on RD takes even longer time to have an impact on growth. Therefore, the delay in the outcome of capital and RD intensity will effect on slow growth. Conversely, an increase in
economic growth can occur under the lack of investment in infrastructure and RD, where the growth is actually driven by past investment. The symptoms of growth recovery and lack of investment has appeared
in Indonesia since the 1997 crisis, where growth went hand in hand with problematic infrastructure and low RD intensity in supporting the productivity of manufacturing sectors.
Graph 2 represent the dynamics of economic growth, RD and infrastructure we call here as “EGRI
model” that works as follows:
first
, high economic growth will be achieved by sufficient investment to increase economic activity. An increase in economic activity will generate strong financing power.
However, the more expansive the economic activities, the more intense the economic competition to evolve in a free market, the larger the expenditure for financing the investment, the weaker the financing power for
capital investment then back to lower the economic activity.
Second
, a large economic capacity with sufficient capital investment on infrastucture development could effect on generating an unstable growth if
the economy loose in coping with the pressure of free market competition, due to low competitiveness of product and service in economy.
Third
, instability in economic growth can be prevented by the sufficient innovation with RD intensity together with the availability of large economic capacity. The larger the
economic capacity, the bigger the fund to finance RD intensity, the more innovative product and service emerge, the more competitive the economy, again the larger economic activities and its feedback to enhance
the capital investment.
Fourth
, balancing the capital investment and RD invetsment create a stably high capital efficiency. The stable economic growth is achieved by creating a positive feedback between
economic activity and RD intensity, where technology innovation is driven by reinvesting the yields of economic activity into RD intensity for creating competitive product and service in the economy.
Fifth
, the more competitive product and service will push the private sector to race in conducting innovation with
RD intensity.
Graph 1
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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
For methodological explanation about the system, elements, variables, measurements, data, model
simulation are technically represented by the results of validation as shown in the Appendix 1. This paper is organized in the following order: i introduction, ii learning with low and without RD activity, iii RD
intensity and economic propserity, iv infrastructure quality and RD intensity, v researcher in RD and science policy, and vii conclusion and policy implications.
2. Learning with low and without RD activity
