The document discusses challenges in developing regional innovation systems in Indonesia. It identifies several generic and challenging issues, including weaknesses in the legal/regulatory framework, limited funding for innovation, weak collaboration between actors, and a lack of innovation culture. It proposes a common future agenda to address these issues through six initiatives: developing a framework conducive to innovation, strengthening S&T institutions, fostering collaboration, developing an innovation culture, fostering integrated regional initiatives, and developing strategic responses to globalization. It reviews early initiatives in three Indonesian regions and lessons learned from the initial stages.

1. CHALLENGING ISSUES IN INITIATING REGIONAL INNOVATION SYSTEM DEVELOPMENT: THE CASE OF INDONESIA Tatang A. Taufik Agency for the Assessment and Application of Technology (Badan Pengkajian dan Penerapan Teknologi / BPPT) Sub-Committee on S&T Infrastructure and Resources Development (SCIRD). The 7 th ASEAN Science and Technology Week (7th ASTW) 2 nd Science Congress and Sub Committee Conferences Jakarta, August 5 – 7, 2005

23. THE REGIONS 3 1 Tegal Regency Sumedang Regency Barru Regency

24. GENERAL FRAMEWORK FOR COLLABORATION AND COORDINATION PATTERN Thematic and/or Specific Initiatives Framework Conditions Regional Dimensions National Dimensions N A T I O N A L R E G I O N A L

25. TEGAL REGENCY Central Java

30. AN EXAMPLE OF PRACTICAL TOOLS (STAKEHOLDER-FRIENDLY) TO BUILD CONSENSUS ON THE COMMON/COLLABORATIVE AGENDA (AND POLICY INTERVENTION) Starting the Industrial Cluster Development Initiatives (drawing some concepts and/or methodologies, e.g., from Porter’s Four Diamonds, for practical developing practical approaches)

31. Stakeholder Mapping Analysing the Business Environment (The Porter’s Four Diamond) Analysing the Improvement of the Business Environment Prioritizing Goals/Objectives Alternative Strategies Program/Activity Matrix Goal/Objective Trees Agenda Agenda Agenda Agenda Results Hierarchy activities outputs purpose goal + - + - + - + -

32. 7. CONCLUDING REMARKS : SOME LESSONS LEARNT (FROM THE INTIAL STAGE)

34. APPENDICES

36. INNOVATION Innovation Technological Services Organizational Goods Process Product System “ Technocratic” definitions

37. SOME PERSPECTIVE DEVELOPMENTS ON INNOVATION Technology Push: “ Linear-Sequencial” Chains of Capability-driven Forces 1960s – 1970s Basic Research R&D Applied Research Manufacturing/ Production Sales/ Distribution Demand Pull: “ Linear-Sequencial” Chains of Demand-driven Forces 1970s – 1980s “ Demand” Applied Research Basic Research Market Driven: “ Interactive-recursive (and Iterative)” Process and as a Learning Process 1980s – . . . . Manufacturing/ Production R&D Sales/ Distribution

38. THE CHAIN-LINK INNOVATION MODEL Research – Knowledge Creation Potential Market Invent and/or Analytical Design Detailed Design And Test Redesign and Produce Distribute and Market Transfer Processes (various) Source : Adapted from Kline and Rosenberg (1986).

39. NATIONAL RESEARCH AND INNOVATION SYSTEM Source: Erik Arnold & Stefan Kuhlmann, 2001 The potential reach of public policies ... Framework Conditions Financial environment; taxation and incentives; propensity to innovation and entrepreneurship ; mobility ... Education and Research System Professional education and training Higher education and research Public sector research Industrial System Large companies Mature SMEs New, technology- based firms Intermediaries Research institutes Brokers Consumers (final demand) Producers (intermediate demand) Demand Banking, venture capital IPR and information Innovation and business support Standards and norms Infrastructure Political System Government Governance RTD policies

40. THE TRIPLE HELIX MODEL Source : Etzkowitz and Leydesdorff (2000). Government Industry Academia Tri-literal network and Hybrid Organization Linkages/interactionsamongst institutions in the “sphere” as “dynamic and endless transitional processes”

41. NATIONAL AND REGIONAL INNOVATION SYSTEMS : A Perspective on Regional/Local Uniqueness, Competence, and Cross-sectoral Linkages Industrial Cluster 1-A Industrial Cluster 2-C Industrial Cluster 3-B Industrial Cluster 1-Z Industrial Clusters : Industrial Cluster 3 Industrial Cluster 1 Sector I Sector II Sector III Region C Region A RIS RIS The national Innovation System RIS : Regional Innovation System.