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Thursday, June 5, 2014

Indonesian Domestic Innovation

A 2014 OECD study on innovation IP in developing countries used both Indonesia and Colombia as case studies.

In Indonesia the study recognized a number of barriers to effectiveness of the IP system – slow progression from low tech industries, low R&D levels limiting IP creation, market and bureaucratic weaknesses mean only large companies benefit from IP, low innovation levels in the rich traditional industries and knowledge and a slowly emerging economy with large income inequalities.

Recommendations included: improving IP system quality (e.g. automation), policy improvements to help IP commercialization succeed, learning from other countries, and a focus on trademarks designs and copyrights (rather than patents, due to the weak technology levels) to benefit more Indonesians.

At a time when Indonesia is breaking into the top 10 global economies, it cannot afford to remain dependent on commodity sales to China. In the near future indigenous businesses will need to take up some of the slack in the economic growth, and that will require domestic innovation and IP. If a reforming president is elected in July that is a possibility. The old ways of governing are simply not working for innovation.

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