Warta Kebijakan Iptek dan Manajemen Litbang
COPING WITH LOW R&D INVESTMENT IN INDONESIA: POLICY INSIGHTS FROM SYSTEM DYNAMICS MODEL
Center for Science and Technology Development Studies, the Indonesian Institute of Sciences
This article will discuss the application of human metaphor in building system dynamics model the so called Economic Dynamic Through Innovation (EDTI). The model was applied to explain the scenario of economic dynamic through innovation in Indonesia. The model has explained the Indonesian experiences in economic growth with negligible investment in R&D as well as its future possibilities namely persistent, moderate and optimist scenarios. The model has generated two policy insights to cope with persistenly low R&D investment suggest that Indonesia needs: (i). to increase “absorptive capacity” in Science, Technology and Innovation (STI); and (ii). to advance “life science research for sustainable development”. The needed policy measures to implement the insigths in the realworld are: (i). flexibility of intellectual capital mobility between intellectual pools (in research institutions, universities) and industrial cluster especially in Low and Medium Technology (LMT) industry; (ii). acceleration of innovative learning in the leading LMT industry; (iii). establishment of conducive innovation ecology; and (iv) a strong support to the development of life science-based R&D for sustainable development would be a leverage point for an optimist scenario in the future.