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Title of Presentation. Innovative Innovation in: Indonesia STI Days, Bangkok, 21 Jan 2014 Session: Innovation in ASEAN Dr. Rudie Trienes (KNAW-The Netherlands ) Florian Gruber (ZSI-Austria ) Ms. Tri Sundari (RISTEK-Indonesia) Ms. Herlina Hadisetiawati (RISTEK-Indonesia).

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  1. Title of Presentation Innovative Innovation in: Indonesia STI Days, Bangkok, 21 Jan 2014 Session: Innovation in ASEAN Dr. RudieTrienes(KNAW-The Netherlands) Florian Gruber (ZSI-Austria) Ms. Tri Sundari(RISTEK-Indonesia) Ms. HerlinaHadisetiawati(RISTEK-Indonesia) Subtitle/otherinformation EU-ASEAN S&T cooperation to jointly tackle societal challenges

  2. Agenda • Context • Key Indicators • Key Players • Legal Framework • Indonesia S&T Development Framework • Regional Innovation Clusters in 6 Economic Growth Centers • II. Innovative Innovation Support • - Best practices of funding scheme • - Strengths and Weaknesses • III. Conclusion

  3. I. Context (Key Indicator) Indonesia, the only ASEAN country to be selected as member of the G20 R&D Expenditure counts about 0.08% of GDP Ranks 38th on the Global Competitiveness Index in 2013-2014 Ranks the 4th most populous country in the world 5. Demographic bonus

  4. I. Context (Who is the key players) Ministry of Finance The National Development Planning Agency National Innovation Committee (KIN) The Indonesian Academy of Science (AIPI)

  5. I. Context (Legal Framework)

  6. Indonesian S&T Development Framework

  7. Regional Innovation Clusters in 6 Economic Growth Centers • According to The Presidential Working Unit for Supervision and Management of Development (UKP4): ‘the focus has to be on gradual, incremental innovation to ensure that the local end-users will have access to appropriate innovations, i.e. local SMEs using existing technology and adapting this to local conditions’.

  8. II. Innovative innovation support The dominant mode of STI funding in Indonesia is institution rather than programme-based. Funding is usually provided in the form of direct institutional funding rather than funding allocated via competitive programmes. INSTRUMENTS Strengthening NIS through strengthening: 1. S&T Institution; 2. S&T Resources; 3. S&T Networking • Research funding • Capacity building program (degree • & non- degree) • Entrepreneurship Programme for • Students in Universities • Co-operative Academic Education • (Co-op) with SMEs • IPR Support Programme • Dissemination Programme • Triple Helix Examples of Innovation • Clusters, Incubators, Centres of • Excellence • International cooperation Supported by: Ministries; Universities; Industries; Regional Governments; SMEs; Financial Agencies From basic research to commercialization

  9. Best Practices of Funding Scheme Consortium Research (Universities; R&D Institutes; Industries) - Vaccine Development - Defense Technology - Information and Communication Technology (CBI) International Cooperation (private sector leaders, and research partners internationally) - Indonesia International Institute for Life-Sciences(I3L), research-based educational institutions bioscience innovation (life sciences). 3. Corporate Social Responsibility - Mandiri Young Technopreneur Awards (Mandiri Bank)

  10. Strengths and Weaknesses Strengths: Indonesia has many potential natural resources. Strong domestic market. Having sufficient institution that role as key player of innovation. Universities receive big support from the government on research activities. There is impression to having widely collaborative research. Indonesia’s government acknowledges the need both to strengthen the private business sector and state-owned enterprises by implementing incentive systems that reflect industrial needs.

  11. Strengths and Weaknesses Weaknesses: Need to align regulations and policies conducive to the whole chain involved in innovation (S&T, finance and tax systems, higher education, trade, social welfare) in a coherent, transparent fashion. 2. Lack of coordination among ministries, universities under the authority of the Ministry of Education, Non-departmental Government Institutes under the Ministry of Research and Technology, Provincial R&D Agencies under the authority of the Ministry of Internal affairs, etc. 3. R&D activities fail to be regarded as commercially viable proposals. 4. Royalty sharing procedure is not yet in place.

  12. III. Conclusions • Indonesia needs to address a number of major challenges in setting up a National Innovation System on the route to an innovation-driven national economy. • Consortium scheme is considered as an effective way to improve the • collaboration between researches in universities, R&D institutes and industries. • Indonesia’s government also acknowledges the need both to strengthen the • private business sector and state-owned enterprises by implementing incentive • systems that reflect industrial needs, and to strengthen small and medium • innovative enterprises and start-ups by developing new products and providing • customized innovated technologies. • Indonesia’s government feels the need of a coherent, independent funding • mechanism. • More challenges in facing the ASEAN Community 2015.

  13. Contact Thank you! The final study will be available at: www.sea-eu.net in June 2014 • Dr. RudieTrienes(KNAW-The Netherlands) - rudie.trienes@knaw.nl • Florian Gruber (ZSI-Austria) - gruber@zsi.at • Ms. Tri Sundari(RISTEK-Indonesia) – trisundari@ristek.go.id • Ms. HerlinaHadisetiawati(RISTEK-Indonesia) – herlina_hadi@ristek.go.id

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