Title: Determinants of Innovation and Business Prospects in Large Medium Enterprises in Indonesia
Author: Rapita Handayani
Affiliations : Master of Economics Program, Faculty of Economics and Business, Universitas Airlangga Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to determine the determinants of innovation in large and medium enterprises (UMB) in Indonesia using the Negative Binomial Regression method. This research also looks at the influence of process innovation, product innovation, marketing innovation, and managerial/organizational innovation variables on company/UMB prospects in the main sectors (sectors C, G, F, and B) in Indonesia. This research processes 318,895 UMB microdata obtained from the 2016 Economic Census-Continuation of Data Collection for Medium Large Enterprises (UMB) and Micro Small Enterprises (UMK). This data collection was carried out by the Central Statistics Agency in 2017. The results of descriptive analysis show that marketing innovation and product innovation are the types of innovation most frequently carried out by UMB in Indonesia. The results of the inferential analysis show that the economic sector model in which all independent variables are significantly positive towards the innovation variable is the K sector model (Finance and Insurance). The variables ownership of copyright/patent rights/intellectual property rights, business development preparation, research and development, and workforce training with a significance level of one percent have a positive effect on the UMB innovation determinant model for all economic sectors (non-agricultural). The partnership variable also has a significant (one percent) positive effect on innovation in all sectors, except sectors D and E. The internet use variable has a positive effect on innovation in all sectors, except sector F. The business scale variable has a positive effect in sectors D, F, and K. The types of innovation that have a positive influence on sector C business prospects are product and managerial innovation. In sector G, all types of innovation have a positive effect on business prospects.
Keywords: Innovation, Prospects, Large Medium Enterprises, Negative Binomial Regression, Log-Binomial Regression
