SMALL AND MEDIUM BUSINESS NEED INNOVATION AND TECHNOLOGY

In the era of globalization and free trade, industrial competiveness in a country is determined by several factors, among others, readiness of the absorption and mastery of technology and the capacity to innovate. Thus, the role of research and development (R&D) is important supporting the industrial development program. The past growing and cutting edge technology must be controlled and disseminated to the public so it can be applied in industry. “That means small and medium business (SMEs) need innovation and technology”, said secretary of the ministry of cooperatives and small and medium enterprises, Agus 

Muharram, in Jakarta on Tuesday (4/23/2013). Ministry of cooperatives and small and medium enterprises, said Agus, is trying to improve the equality and competiveness of products of micro, small, and medium business in Indonesia. The measures, among others, are performed by applying touch of innovation and technology from Japan.  Sometime ago, it visited Japan to establish working relationship with IM-Japan (international manpower development for small medium enterprises of Japan).

Agus said that over the last 20 years, there were approximately 300,000 Indonesian trainees in Japan. He said that the government would encourage the trainees who later returned to the country to develop into superior entrepreneurs armed with the knowledge gained from Japan. Agus said that cooperation to increase product added value and competiveness of SMEs in Indonesia is also performed by the ministry of cooperatives and small and medium enterprises with Enjinia Nusantara. He explained that Enjinia Nusantara is a professional association who once pursued higher education in Japan diploma, bachelor, master, or doctorate and later worked as an industrial professional in Japan.

Agus explained further that innovation is the specific tool of entrepreneurs to exploit change as a different business of service. Innovation can be delivered as a discipline that can be learned and put into practice. According to Agus, innovation is not always a new discovery (invention), meaning that the innovation of a product or service is not always to bring a new invention, innovation can emerge through improved quality of service and products, improving existing system and may also constitute integration of multiple component into a single system.

Agus sees that technology cannot be separated from innovation. By using technology, it will obtain a way or method to give added value to a process, product, and system simplification. In other words, Agus said, there will be no innovation without technological mastery. Arrangement of human resources and technology to spark an innovation is the core of technology-based innovation. According to him, innovation and technology management requires the involvement of academicians to engage in the management system as a provider of educated and skilled personnel, but it also acts as a laboratory for the emergence of innovations to be later applied to industry.

 

In addition, capacity building in SMEs and cooperatives is a necessity, especially, in technology development, organizations operating system and organizational instruments most importantly how cooperative/SMEs can develop the human resources available. Attention to these three factors should be the main focus of cooperative/SMEs to be able to compete with other alternative forms of economic institutions. These will be a strong pillar for cooperative /SMEs to be able to continue to develop business wings that can be run by cooperatives while attempting to contribute to improving the welfare of the society at large.

Business News - July 26, 2013