INNOVATION PATTERNS IN LOW TECHNOLOGY INDUSTRIES THROUGH A REGIONAL INNOVATION SYSTEM APPROACH IN THE CONTEXT OF REGIONAL DEVELOPMENT (CASE STUDY PEKALONGAN BATIK INDUSTRY

• Main Author: MANINGGAR, NIMAS
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29651
• Institution: Institut Teknologi Bandung

In the last decade, academics and policy makers have increasingly criticized the inclination of regions towards the dominance of high -tech industries for boosting regional economies through innovation. One of the triggers of this critique is the paradigm shift of the meaning and process of creating innovation from a linear model, which focuses on R&D, toward a non-linear model that is achieved through interactive processes. This view implies the existence of a social process that involves cooperation and collaboration among actors in creating innovat ion. In a regional context, industries need support in the form of policies or certain institutional conditions to be able to innovate. The inter -actor relationship is summarized in the concept of the Regional Innovation System (RIS). <br /> <br /> <br /> The application of RIS in a region’s inter-actor relationships in identifying innovation processes is still considered a “black box” because of the lack of empirical evidence, especially in developing countries. In the concept of RIS, low tech industries have an opportunity t o contribute to creating innovation. This concept accommodates the open nature and the interactive process in its creation. Thus, the meaning of innovation is not limited to radical changes originating from the process of R&D but includes incremental chang es such as in the process, organizational structure, and marketing. <br /> <br /> <br /> The developing countries in South East Asia have a competitive advantage in lowtech industries, especially in the textile industry. Indonesia has a traditional batik textile industry with a large market, both foreign and domestically. Pekalongan Municipality is the biggest batik producer in Indonesia. Many studies have tried to describe the batik industry in Pekalongan Municipality and some of the findings points at innovation as one of the aspects underlying the success of the Pekalongan batik industry. Even though Pekalongan uses RIS to grow its regional economy, no research has been conducted concerning the innovation process using a RIS approach. This study seeks to uncover Pekalongan’s innovation patterns by analysing the innovation process based on the actors and their collaboration with the institutions as the elements that form RIS. Moreover, the innovation pattern in Pekalongan will be used as guidance for developing innovation in other regions that have similar regional and industrial characteristics. <br /> <br /> <br /> The study uses qualitative methods with a case study approach using purposive snowball sampling. The sample was taken from five different groups comprising the industry, the university, the government, the financial body, and the social organization. Determining the innovation factor of low-tech industries involved a three-stage analysis consisting of identifying the actors using the variable of organizational thickness; outlining inter-actor collaboration by describing the influence of regional policy on supporting innovation in the batik industry; and analyzing the resulting pattern of collaboration. <br /> <br /> <br /> The study shows that the implementation of an innovation system policy by the local government supports the creation of industrial innovation. The government through its policies is able to create institutional change which drives the inter actor collaboration. In addition, social factors such as the relational proximity are important elements in supporting inter-actor relationships, especially in the process of knowledge transfer. Collaboration supported by policy and socio cultural elements creates two conducive conditions for innovation, i.e., research and learning. This enables Pekalongan Municipality to maintain its position as the biggest batik producer and to benefit its regional economical development. <br /> <br /> Keywords: Regional Innovation System, Low-tech Industry, Innovation, Collaboration, Regional Development <br />