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Innovation and Dynamic Productivity Growth in the Indonesian Food and Beverage Industry

Author

Listed:
  • Maman Setiawan

    (Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia)

  • Nury Effendi

    (Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia)

  • Rina Indiastuti

    (Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia)

  • Mohamad Fahmi

    (Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia)

  • Budiono

    (Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia)

Abstract

This paper examines the relationship between innovation and dynamic productivity growth in the Indonesian food and beverage industry. Dynamic productivity growth is calculated using a Luenberger indicator, and innovation is represented by a process innovation. This research uses firm-level data for the period 1980–2015 sourced from the Indonesian Central Bureau of Statistics. This research uses a panel data regression model to estimate the relationship between innovation and dynamic productivity growth. This research finds that innovation is relatively low in the Indonesian food and beverage industry. Dynamic productivity growth declines steadily during the period of estimation. This research also found that innovation positively affected dynamic productivity growth only after the introduction of the competition law in Indonesia.

Suggested Citation

  • Maman Setiawan & Nury Effendi & Rina Indiastuti & Mohamad Fahmi & Budiono, 2022. "Innovation and Dynamic Productivity Growth in the Indonesian Food and Beverage Industry," Resources, MDPI, vol. 11(11), pages 1-13, October.
    • Handle: RePEc:gam:jresou:v:11:y:2022:i:11:p:98-:d:952792
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    References listed on IDEAS

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