Abstract

Despite the fact that technological innovation and its role in the economic growth of developed countries have been much studied, but there is only little knowledge about the factors that determine technological innovation in Indonesia. In an effort to fill this gap, this study is conducted with the aim to analyze the factors that affect innovation in the food industry inIndonesia. Analytical methods used to achieve the research objective are regression analysis with 2 SLS (Two Stage Least) method and qualitative analysis. The results showed that there sixteen factors that influence technological innovation in the Indonesian food industry. By usingfurther 2 SLS method, empirical observation, in-depth interviews and discussions with experts, it is obtained the strong of technological innovation determinants to enhance technological innovation in the food industry. The determinants include the style of leadership, human capital,learning orientation, the company's ability to provide incentives / rewards, company relationships with outsiders and corporate location.

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