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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) EU-ASEAN S&T cooperation to jointly tackle societal challenges Subtitle/other information

2 Agenda Context II. Innovative Innovation Support III. Conclusion
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 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)
The National Long Term development Plan sets the R&D priorities for The medium-term five-year plans (RPJMNs) National Research Agendas (NRAs) National Strategic Policy on Science and Technology Masterplan Accelaration and Expansion of Indonesia Economic Development (MP3EI)

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
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
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 Dr. Rudie Trienes (KNAW-The Netherlands) - Florian Gruber (ZSI-Austria) - Ms. Tri Sundari (RISTEK-Indonesia) – Ms. Herlina Hadisetiawati (RISTEK-Indonesia) – Thank you! The final study will be available at: in June 2014

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