The innovation cluster of ICT start-up companies in developing countries: case of Bandung, Indonesia

Abstract

Innovation is one of critical success factors in determining industrial productivity and competitiveness. In order to foster its national innovation system, Indonesia, as a developing country, has set a goal to introduce innovations in all social and economic sectors for promoting industries in those sectors and then creating a knowledge-based economy. Among widely-recognised approaches to achieve such kind of goal, clustering is one that offers effectiveness and efficiency in promoting competitiveness and economic growth of a region, hence accelerates the economic growth at national level. Of many economic sectors in Indonesia, ICT is arguably a large and rapidly growing sector in the country. The sector is known as a technologically advanced one and is considered as a strategic driver of national as well as regional economic developments. This study aims to explore clusters of innovation in existing ICT start-up companies in Indonesia. Qualitative method is taken as the research method by conducting in-depth interviews with ICT entrepreneurs in Regional IT Center of Excellence (RICE) Bandung, Indonesia. The paper can be referred by further researches which may attempt to investigate innovation clusters in any kind of ICT-based industries.