STRENGTHENING INNOVATION THROUGH TECHNOLOGY BUSINESS INCUBATOR IN

INDONESIA

Bambang Subiyanto and Syafrizal MaludinCenter for Innovation, Indonesian Institute of

Sciences3rd Floor A Building, LIPI Campus

Jl. Jenderal Gatot Subroto 10Jakarta 1270, Indonesia

2011 APEC – Building A Co-incubation NetworkSeptember 6 – 7, Xian, China

Out Line

• Introduction

• Indonesian Institute Of Sciences

• The Role of Center for Innovation in promoting Adoption of Innovation for SMEs

• National Policy On Innovation and Technology & Business Incubator in Indonesia

• Summary

INTRODUCTION• Learning from develop countries it shown the novel

technology, market, organizational system play an important role in shifting the welfare of people.

• Moreover, incubator and supply chain management plays as tools in enhancing the velocity of technology transfer and is required.

• Many governments have developed specific innovation policies which tended to encourage innovation.

• These include creating new intermediary organization that help build connections between research and business.

INTRODUCTION• In other side, innovation climates in developing

countries are hampered by weaknesses of other key elements of knowledge-based economies, namely, levels of educational attainment, the business environment and the information infrastructure.

• Indonesian Institute of Sciences (LIPI) initiates to develop new Science Park in Cibinong in 2011.

• This Science Park and Technology incubator will be included in one program called Cibinong Science Centre (CSC) or ‘Inopolis’ which stands for Innovation and city.

INTRODUCTIONINTRODUCTION

Major Industries in Indonesia

• Major industries: petroleum and natural gas, textiles, apparel, and mining.

• Major agricultural products : palm oil, rice, tea, coffee, spices, and rubber.

Indonesian Institutes of Sciences Indonesian Institutes of Sciences (LIPI)(LIPI)

ORGANIZATION

TTG Subang

UPT Mineral Lampung

BBPTK Wonogiri

UPT Balai LIN

Kebun Raya Cibodas

Kebun Raya Bedugul

Kebun Raya Purwodadu

Kebun Raya Bogor

UPT P. Pari

UPT Bitung

UPT Mataram

UPT Jampang

UPT Liwa

UPT Tual

UPT Biak

UPT Karangsambung

Bureau forOrganization &

Human Resources

Bureau forPlanning & Finance

Bureau forScience Promotion

& Cooperation

Bureau forPlanning & Finance

Center for Science& TechnologyDevelopment

Inspectorate

Deputy forEarth Sciences

Deputy forScientific Services

Deputy forSocial Sciences

Deputy forEngineering Sciences

Deputy forLife Sciences

Research Center forGeotechnology

Research Center forOceanography

Research Center forLimnology

Research Center forMetalurgy

Research Center forBiotechnology

Research Center forBiology

Center forPlant Conservation

Research Center forPhysics

Research Center forChemistry

Research Center forElectronic &

Communication

Research Center forInformatics &

Computer

Research Center forElectric Power &

Mechatronics

Research Center forPolitics

Research Center forEconomy

Research Center forPopulation

Research Center forCulture & Society

Research Center forRegional Studies

Center for ScientificDocumentation &

Information

Center for Standardand Quality System

Center for Innovation

Center for Instrumentationand Calibration

Principal Secretary

CHAIRMANVice Chairman

UPT Ambon

UPT BIT

UPT LIPI Press

UPT Biomaterial

•5 Deputyships

•22 Research Centres

•20 Technical Implementation Units/Research Station

LOCATION OF RESEARCH CENTERS AND STATIONS

LOCATION OF RESEARCH CENTERS AND STATIONS

Kantor PusatKantor PusatP2Oseanografi, PMB, P2E,P2Oseanografi, PMB, P2E,

P2Kp, P2P, P2MetalurgiP2Kp, P2P, P2Metalurgi

P2B, P2Bt, P2LimnologiP2B, P2Bt, P2LimnologiKBR Bogor, CibodasKBR Bogor, Cibodas

P2Geoteknologi, P3F, P2KP2Geoteknologi, P3F, P2KINKOM, TELIMEK,INKOM, TELIMEK,ELKOM, UPT BIT,ELKOM, UPT BIT,

UPT Balai LINUPT Balai LIN

UPT AmbonUPT Ambon

UPTBitungUPTBitungUPT BiakUPT Biak

UPT TualUPT Tual

UPT LombokUPT Lombok

UPT P. PariUPT P. PariUPT LampungUPT Lampung

UPT JampangUPT Jampang

UPT KarangsambungUPT Karangsambung

K.R.PurwodadiK.R.Purwodadi

K.R.BedugulK.R.Bedugul

UPT TTGUPT TTG

UPT Pengolahan UPT Pengolahan MineralMineral

StasiunStasiunWamenaWamena

UPT BPPTKUPT BPPTK

Indonesian Institutes of Sciences Indonesian Institutes of Sciences (LIPI)(LIPI)

• The Lembaga Ilmu Pengetahuan Indonesia (LIPI, Indonesian Institute of Sciences) was officially established on August 23, 1967.

• Since its establishment in 1967, it has been restructured three times, in 1986, in 2001 and in 2004.

STATUSSTATUS

TASKS

THE ROLE OF CENTER FOR INNOVATION IN PROMOTING ADOPTION OF INNOVATION FOR SMEs

• The Center for Innovation was officially established in June 2001 under the Deputy for Scientific Services of Indonesian Institute of Sciences.

• The main tasks are to carry out policy formulation and development of business guidelines, provision of commercial services and intellectual property management, and facilitation of innovation processes.

THE ROLE OF CENTER FOR INNOVATION IN PROMOTING ADOPTION OF INNOVATION FOR SMEs

• This center is one among 22 centers and 30 technical implementation units in Indonesian Institute of Sciences (LIPI).

• Services offered are:– Technology transfer / Technology commercialization /

Intellectual Property Management/ Technology licensing strategy development

– Technology innovation-based new product development

– Technology business incubation management– Business planning development

THE ROLE OF CENTER FOR INNOVATION IN PROMOTING ADOPTION OF INNOVATION FOR SMEs

• Marketing and financing strategy development of newly technology-based businesses

• Research on management of innovation technology

• Mentoring and consultancy on innovation adoption

• Management of Workshops, Symposium, Conference, Seminars and Training on Intellectual Property, Technology Commercialization, Innovation management, and business planning.

THE ROLE OF CENTER FOR INNOVATION IN PROMOTING ADOPTION OF INNOVATION FOR SMEs

• Center for Innovation have initiate and conducting programs to strengthening our national competitiveness which base on innovation technology.

• This center aim to joint in three contracts with industry and submit fifty technology to Indonesian Patent Office.

• Center for Innovation have created four small businesses in agricultural sector since 2009.

NATIONAL POLICY ON INNOVATION AND TECHNOLOGY & BUSINESS

INCUBATOR IN INDONESIA

• The Indonesian Government was established the National Committee for Innovation (Komite Inovasi Nasional/ KIN).

• This committee is expected to strengthening national innovation capacity, to stimulate innovation in culture to deliberate policy recommendation for government to set priority of national program and develop an action plan which includes the budget and infrastructure.

NATIONAL POLICY ON INNOVATION AND TECHNOLOGY & BUSINESS

INCUBATOR IN INDONESIA• KIN stated that the national innovation

system should cover areas of food security, sustainable energy, biotechnology, manufacturing industry, transportation & defence industry, processing of agricultural product, processing of fishery industry and mitigation management.

Future Plan

•  New momentum for 2010-2014 (National Mid-New momentum for 2010-2014 (National Mid-Term Development Plan)Term Development Plan)– National Innovation System Strengthening one of the National Innovation System Strengthening one of the

development priorities.development priorities.– Higher Education budget for supporting new Higher Education budget for supporting new

entrepreneursentrepreneurs• 20% of national annual budget for education 20% of national annual budget for education

(including R&D and Entrepreneurship program by (including R&D and Entrepreneurship program by educational sectors)educational sectors)

• Indonesian Institute of Sciences (LIPI) has plan Indonesian Institute of Sciences (LIPI) has plan to establish Bio-Hydro incubator technology to establish Bio-Hydro incubator technology

Future strategic industries1)What are the target strategic industries?

Bio-Hydro based industriesBio-Hydro based industries

2) Reason(s) for selecting the target industry• Huge of raw materialHuge of raw material• Many supporting research centers and UniversitiesMany supporting research centers and Universities• High potential marketHigh potential market• Center government policies to develop maritime Center government policies to develop maritime

based economy based economy

3) Plan to promote the target industry• Display Bio-Hydro Technologies from Research Display Bio-Hydro Technologies from Research

centers and Universitiescenters and Universities• Set up match making between companies and Set up match making between companies and

Research centers ProductsResearch centers Products

West Java

JABABEKA JABABEKA Industrial Industrial

ZoneZone

Cibinong Cibinong Incubator Incubator

Technology Technology CenterCenter

RDCs, RDCs, BIT, BIT, PUPU

REGIONAL STATUS:REGIONAL STATUS:Cibinong Science CenterCibinong Science Center

Raiser ikan hiasPartnership zone Fish ornament production

Germ of Life Garden

RDC for Limnolo

gy

RDC for Biology

RDC for Biotechnolo

gy

RDC for Biomaterials Location of Location of

Incubator Incubator TechnologyTechnology

REGIONAL STATUSREGIONAL STATUS

Center of Bio-based Marine R&D

Already existing RDC for Limnology, biology, biotechnology, biomaterial, Oceanography

Excellent man power supply Easy to recruit skilled workers need for knowledge-oriented workforce

Indonesia huge of Natural resources

Indonesia have plenty of biodiversity in land/forest and marine

Needed for commercialization of experiment results

Many of experiment results on bio-hydro ready to commercialize

Cibinong is a region with good R&D infrastructure, universities & Cibinong is a region with good R&D infrastructure, universities & manpower to decades of development bio-based industries.manpower to decades of development bio-based industries.

MARKET OF BIO-HYDRO INCUBATOR TECHNOLOGY IN CIBINONG SCIENCE CENTER

Summary

• Center for Innovation have activities in incubation not in place but spread to each Research Centers

• Bio-Hydro Incubator Technology will establish in 2012

• Want to joint in APEC Co-incubation Network