Toward Inclusive Development Through Smart Economy in Malang Regency

Abstract

The concept of smart economy is used as an innovation in the economic field based on industry 4.0 and uses a different network system. Bakici et al. (2013) said smart economy includes several points of discussion including the formation of innovation clusters, mutual cooperation between companies, research institutions, and citizens whose role is to develop and promote innovation through the concept of smart economy [1]. Furthermore, the concept of smart economy is used as a form of sustainable economy, by using several definitions and / or other terms such as “Green Economy” and “Green Industry”.They are used to describe effective economics in a more modern way. UNEP defines the Green Economy as an economy that can produce “improved human welfare and social justice, and can significantly reduce the risk of environmental and ecological damage” [2]. The industry’s revolutionary 4.0 Era, which has become a major issue throughout the world, has encouraged Malang Regency to play an active role in regional management using a citizen centric approach. These dimensions are divided into two fundamental considerations, namely the process of innovation, and the ability of competitiveness that is useful for improving the regional economy better and smarter. Based on the issue of economic challenges that occur in Malang Regency, smart economy as a part of smart city element is the focus that will be developed. It consists of 3 (three) important fields including: enterprise and innovation, productivity, then local and interconnectedness.