AN INNOVATION CAPABILITY MODEL TO INCREASE MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) COMPETITIVENESS IN INDONESIA: A CONCEPTUAL MODEL
Keywords:
innovation capability, competitiveness, MSMEs, conceptual modelAbstract
Globalization and the fourth Industrial Revolution have presented various opportunities but also disruption in the economy and social life. Although Indonesia's performance among ASEAN countries is very good, in 2019, Indonesia has experienced a decline in globally competitiveness. One of the low aspects is the innovation capability. As the main driver of the nation's economy, MSMEs must have the innovation capability to create innovation and make valuable contributions to the nation's competitiveness. It is very important to identify the factors that show the innovation capability. This paper present the key constructs of Innovation capability and the developed conceptual model which shows an innovation capability model through a conclusive research. The model identifies three key innovation capability constructs, namely knowledge & technology output, knowledge utilization for product innovation, and innovation fund generation and other important factors to explain the constructs. The first two constructs constitute the technical aspect and the third construct indicate the financial aspect of innovation capability.
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