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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
2.1 Statistical evidences
Viewed from statistical evidences, Indonesia has practiced to keep on
low
RD intensity in the last 30 years. The stagnant expenditure on RD in Indonesian economy was shown by national RD intensity
that continued to fall steadily from 0.54 in 1982 to around 0.08 of GDP in 2010. The industrial RD was only around 0.013 of GDP that contributed to around 20 of national RD in 2010. While, the
government RD expenditure not include RD expenditure in higher education was around 0.067 of GDP, althogh it covered to 80 of national RD activity, how ever it has little or almost no meaning due
to rarely produced commercial innovation. The Indonesian economy continued to growth despite its national RD intensity continued to decline. For the period of 1990-2010, GDP rose 30 fold at nominal value and
grew constanly 7 before the crisis then 5 after the crisis of 1997. On the other hand, national RD expenditure rose 16 fold, but RD intensity declined from 0.13 in 1990 to 0.08 of GDP in 2010.
Pappiptek-LIPI, 2011 See Graph 3.
Graph 2
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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
Trends of RD activities in Indonesia 1969-2013
Time o
f G
D P
National Gov _sector
Gov _institution Higher institution
Industrial sector
1970 1974
1978 1982
1986 1990
1994 1998
2002 2006
2012 0,0
0,1 0,2
0,3 0,4
0,5
Source: data and estimation based on Indonesian science and technology indicators, P appiptek-LIPI 2013, 2011, 2007,2006 Time
P e
rc e
n t
Gov_share Ind_share
1970 1980
1990 2000
2010 10
20 30
40 50
60 70
80 90
100
There are three situations that related to low RD intensity in Indonesia, namely: i. large portion of Low and Medium Technology LMT industry, ii. lack of the government attention, and iii. share of private
RD intensity is very low. Such a low RD intensity have kept Indonesia defending to produced low end products in the economy, as shown by large portion LMT industry in industrial sectors. Aminullah, 2011,
2012
First,
Indonesian industrial sector is generally dominated by LMT industry. The industry produces low technology products that does not require RD facility. In the period of 1998-2007, approximately 60-
65 of industries produced low technology products, such as food products, beverages, shoes, textile products and articles of textiles, leather and leather articles, wood and paper products, rubber and plastic
articles, metal and metal goods. Around 20-25 of industries produced medium technology products, only small portion of them performed RD activity with low intensity. Even in the medium technology industry
such as component of automotive industry did not do their own RD as the source of innovation, because their RD activities were generally performed by its parent company abroad.
Second,
the government attention towards the development of ST has constantly decreased since 1990s. In the 1980s, ST budget was about 2.5 of total government budget, furthermore in the 1990s it
dropped to around 0.5, and then ST budget remained approximately 0.5 of total government budget in the 2000s. The continuous decline in the ever low ST budget parallel with positive economic growth
seems to be a typical phenomenon of Indonesia. For the comparison, high attention on ST has paired with high economic growth in China, with ST budget amount to 4-5 of total government budget over last 30
years. Zong-lay, 2010
Third,
private sector is generally less interested in reinvesting their production yields into RD activity. Aminullah 2012 shown that, in the period of 1990-2013 the increase of production did not effect
to the increase of RD intensity. The objective of investment in private sector normally for productivity improvement through capacity enhancement, business expansion, distribution network and sales promotion
those are less requirement, even without, the support of RD facility. In 2010, industrial RD expenditure was very small, only 0.013 of GDP or it was about US 90 million of the Indonesian GDP amount to US
700 billion. Pappiptek-LIPI, 2011
Graph 3
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Forum Tahunan Pengembangan Iptek dan Inovasi Nasional V, Tahun 2015
2.2 Cases study evidences
