Local Innovation Research Articles

Assessing Risks in Otop Production: Integrating Sufficiency Economy Philosophy and Sustainable Development Goals (SDGs) for Sustainable Business Practices in Samut Prakan Province

Objectives: This research assesses risks in One Town One Product (OTOP) production in Samut Prakan Province, exploring how the integration of the Sufficiency Economy Philosophy and Sustainable Development Goals (SDGs) can foster sustainable business practices in response to the new normal lifestyle. Theoretical Framework: The study combines the Sufficiency Economy Philosophy, emphasizing self-reliance and moderation, with SDGs—especially Goal 8 (Decent Work and Economic Growth), Goal 9 (Industry, Innovation, and Infrastructure), and Goal 12 (Responsible Consumption and Production)—to create a sustainable OTOP production model. Method: Using an Action Research methodology, the study incorporates qualitative and quantitative methods, including document reviews, field surveys, risk assessments, and interviews with OTOP producers, experts, and government officials. Data were analyzed through descriptive statistics and content analysis. Results and Discussion: Fifteen risks were identified across five categories: moderation, reasonableness, self-immunity, knowledge, and morality risks. Overall, risks were found to be low. The PDCA (Plan-Do-Check-Act) cycle demonstrated the potential of sustainable development strategies, including product innovation using traditional Thai medicine knowledge, which improved product value and market demand. Research Implications: This study provides a risk management framework for OTOP production, offering insights for producers and policymakers to foster sustainability through local knowledge and innovation, aligned with SDGs. Originality/Value: This research integrates the Sufficiency Economy Philosophy with SDGs to assess risks in OTOP production, offering new perspectives on sustainable entrepreneurship and contributing valuable insights for both academia and OTOP stakeholders.

From local innovation to national policy: Cross‐boundary policy entrepreneurship in China's health regulatory reform

From local innovation to national policy: Cross‐boundary policy entrepreneurship in China's health regulatory reform

Acciones de transición agroecológica: perspectiva del Sistema de innovación alimentario local, en la finca Casa Blanca

A proposal for actions in the agroecological transition as a perspective of the Local Food Innovation System (SIAL) on the Casa Blanca farm, has the objective of socializing the actions developed, and based on agroecological principles, with practical - methodological - scientific value, generating an offer in favor of food production. The conception of key areas articulated with the Territorial Social Economic Development Strategy is the novelty of the result. Descriptive explanatory, non-experimental study. Conclusions: The proposal for actions in the agroecological transition was constituted as a perspective of the Local Food Innovation System (SIAL) on the Casa Blanca farm, on the results of the diagnosis, which revealed weaknesses in the relationships/application of agroecological principles, located in the Typology of incipient or initial transition, a situation subject to transformation, through the management of scientific knowledge. The socialization of the proposed actions provides a solution based on science and innovation that will strengthen the agro-productive scenario in favor of the production of agroecological foods, and the transformation of family farming, obtaining improvements from the use of resources own of the Casa Blanca estate.

Fortalecimiento del sistema de innovación alimentario local: diagnóstico agroecológico en la finca Casa Blanca

The strengthening of the Local Food Innovation System: agroecological diagnosis on the Casa Blanca farm, was developed with the objective of presenting the characterization of the current state of agroecological behavior, with the application of the Tool for the Evaluation of Agroecological Performance, in pursuit of strengthening of the relationships that must be achieved in the System, from participatory innovation practices at the Casa Blanca farm. Descriptive, explanatory, non-experimental study, which applied agroecological elements and indices, identifying potentialities and weaknesses in Casa Blanca. Conclusions: The characterization corroborated potentialities: human/social values, productive conditions, youth/female empowerment, animal welfare, respect for local culture/traditions. Weaknesses were identified in knowledge management based on science and innovation. The current state of the behavior of agroecology showed that the SIAL relationships - principles of Agroecology, must be perfected at the starting point of placing the Casa Blanca farm in a Transition Typology that corresponds with the identification of non-agroecological in a transition incipient or initial, a situation that points to decision-making for the formation of capacities in the producer, and in the decision-makers of the productive form to which it belongs.

Models of technological development: The influence of investment structure

The problem of refining Russia’s model of economic development through achieving the technological sovereignty dictates the need for making strategic decisions within the investment policy of economic growth. The paper aims to determine the models of technological modernisation according to the structure of investments in “old – new” technologies and develop an algorithm for identifying these models by assessing the relationship between investment and risk. Methodologically, the study rests on the theory of technological change. The paper employs elements of structural, statistical, regression and econometric analysis, as well as applies taxonomy methods to pinpoint various options for investment and technological modernisation models. T he evidence is the data on the investment in fixed assets and expenditures on tech nological innovations for 2010–2022 coming from the Federal State Statistics Service of the Russian Federation. The result is the identification of a model of technological modernisation in the Russian economy according to the structure of investments in “old – new” technologies and the sensitivity of the general technological intensity to investments. The paper distinguishes four general strategies of technological devel opment by the impact of expenditures on the dynamics of technological intensity, namely “leadership”, “breakthrough”, “giving up”, and “degradation”. Then, accord ing to the impact of investment in new technologies on technological modernisation it justifies the models “blockage”, “rigidity”, “modernisation”, “saturation”, and, in a similar manner, validates the models “degradation”, “backwardness”, “reliance on old technologies”, “reliance on new technologies” according to the impact of investment in old technologies on technological modernisation. The paper constructs a theoreti cal model of the connection between investment and risk, institutional parameters of investment process. The findings reveal that the Russian economy follows the model of backwardness with local technological innovations, which requires a massive in crease in investment in new technologies, mitigation of risks, and modification of institutional conditions.

Implementation and Education of Circular Economy in Community Solid Waste Management: A Systematic Literature Review

This paper aims to offer strategic management recommendations for the incorporation of circular economy principles into municipal solid waste management and to disseminate knowledge regarding the implementation of this concept within local communities. This research combined systematic literature reviews with qualitative methods, utilizing content and descriptive analysis to evaluate the findings. The study indicates that municipal waste management in communities encounters numerous challenges, including insufficient funding, inadequate infrastructure, and noncompliance from the populace, all of which hinder effective municipal garbage management. In addition, a more significant concern is the lack of efficient techniques for recycling and waste segregation. Moreover, as urban populations increase, waste generation escalates, exerting strain on current disposal facilities. Implementing a circular economy strategy in municipal waste management has numerous benefits, including the reduction of landfill trash, the conservation of natural resources, and the generation of employment opportunities through material recycling and repurposing. Circular economy enhances environmental sustainability by reducing pollution and facilitating the transition to a more resilient, resource-efficient system. Moreover, educating people about circular economy principles enhances their understanding of sustainable practices, leads to less waste and resource conservation, and enhances economic prospects by generating green employment and fostering local innovation in waste management techniques.

Does Local Government Debt Affect Corporate Innovation Quality? Evidence from China

This study investigates the impact of local government debt levels on the behavior of individual firms, which is crucial for understanding the systemic risks associated with local government debt and fostering economic vitality. Using data from publicly listed companies on the Shanghai and Shenzhen stock exchanges between 2013 and 2022, this study empirically examines the effect of local government debt on corporate innovation quality. The findings demonstrate that local government debt expansion has a significant negative impact on corporate innovation quality. The negative impact remains robust across endogeneity tests and multiple robustness checks. Channel analysis indicates that as local government debt increases, innovation subsidies and procurement funding led toward firms’ decline, while both tax and non-tax revenue demands indicated firm increases. This resource reallocation contributes to the observed decline in corporate innovation quality. Further heterogeneity analysis reveals that regions with lower levels of government intervention and fiscal pressure exhibit a smaller negative effect of local government debt on innovation quality. Finally, examining the economic outcomes reveals that the decline in innovation quality, resulting from current local debt expansion, significantly reduces total factor productivity and firm value in the subsequent year, posing challenges for sustainable corporate development.

An Exploratory Study on the Artificial Intelligence Practices on the Human Capital Development within Tourism Village Business Sustainability in Indonesia

This exploratory study investigates the role of artificial intelligence (AI) practices in enhancing human capital development and promoting business sustainability within tourism villages in Indonesia. As tourism villages become increasingly significant to Indonesia’s rural economy, the need to foster sustainable business models that can maintain cultural heritage while promoting economic growth has gained attention. AI technologies, including machine learning, data analytics, and automation, present opportunities for improving human capital development by enhancing skill-building, training, and decision-making processes. This study examines how AI tools are being integrated into training programs, recruitment processes, and daily operations of tourism village businesses to support workforce growth, improve service quality, and ensure long-term sustainability. Through qualitative data collected from tourism village stakeholders in Bali and Java, the research explores AI’s impact on local workforce capabilities, productivity, and innovation in tourism-related services. The study finds that AI practices are helping to bridge skill gaps, enhance workforce efficiency, and optimize resource management. However, challenges such as limited access to technology, digital literacy, and the need for infrastructure development hinder broader AI implementation. The paper concludes by proposing recommendations for leveraging AI practices to further strengthen human capital and business sustainability in tourism villages, thus contributing to the sector’s competitive edge in the global market.

Do green foreign direct investments promote environmental innovation in European countries?

Environmental innovation (EI) plays a critical role in helping a country pursue sustainable development, while green foreign direct investment (GFDI) impacts creative local green innovation. However, there is a lack of research on this link. This paper aims to conduct an empirical investigation into how GFDI affects EI. The estimation findings demonstrate that GFDI has had positive effects on EI—by applying multiple econometric methods, including a panel-corrected standard error modelling (PCSE), a feasible generalized least squares model (FGLS), and autoregressive distributed lag (ARDL) model, to a globally representative sample of 15 European countries between 2012 and 2021. To clarify the connection between GFDI and EI, we present examples of the effects of the latter in both the short and long term. The results show that GFDI has an important beneficial impact on the environment for early-stage investments in the short term. Notably, our findings indicate that GFDI’s long-term effects are more likely to be favourable. Furthermore, we analyze interactions between variables representing institutional quality and the impact of GFDI on EI. Our findings suggest that the positive effects of GFDI may be greater in nations with highly developed institutional systems.

Schumpeterian Implications of Government-led Local Innovation: Evidence from China

This study examines the impact of governmental interventions on the performance of local innovation through technological leapfrogging. Local innovation is defined under the framework of Schumpeterian innovation, encompassing the emergence of high-tech de-novo firms. Additionally, we investigate the potential correlation between national R&D investment and the emergence rate of de-novo firms in a specific region. To test this hypothesis, we analysed the effects of a nationwide scheme in China known as the Jingjinji project; the Beijing–Tianjin–Hebei Joint Development Project, on the formation of de-novo firms dedicated to cutting-edge technologies. We employed panel data from 212 locales in Beijing, Tianjin and Hebei to evaluate the policies’ impact on Hebei’s innovation, as well as the role played by government R&D investment. Based on the difference-in-difference results, the Jingjinji project was found to have a statistically significant positive impact on innovation. However, the emergence of de-novo firms had a negative impact on the project’s success due to decreased R&D investment. This study emphasises the significance of government intervention in promoting local innovation, not only in China but also in other nations.

Regional empowerment through tuberose-based MSME product innovation and appropriate technology in Doplang Village

The community service program under the Regional Empowerment (PW) scheme aims to enhance economic capacity and community welfare through local product innovation based on appropriate technology (AT). Doplang Village in Semarang Regency has significant potential in cultivating tuberose, which is integrated into micro, small, and medium enterprises (MSMEs) with the support of AT. This innovation distinguishes local MSME products from existing market offerings through the application of technologies such as Solar Cell Battery Storage Systems, packaging tools, social media branding, and formulations for products like soap and hand sanitizer. The program was implemented through workshops, training sessions, and intensive mentoring, focusing on developing skills in product development, management, and marketing. Pre-test and post-test evaluations showed a significant improvement of over 50 points in participants’ skills and knowledge, particularly in management and product innovation. The program resulted in six main products, including baby oil, perfume, hand sanitizer, and laundry soap, contributing to local economic growth and supporting sustainable tourism through diversification of tuberose-based products and the application of renewable energy.

Navigating the economic tightrope: Exploring governance, public debt, and their influence on South Africa’s capital formation

This paper explores the interconnected dynamics between governance, public debt, and domestic investment (also known as gross fixed capital formation (GFCF) in South Africa). It also highlights domestic investment as a key driver of economic growth, noting a consistent decline in investment since the country’s democratic transition in 1994. Moreover, this downward trend is exacerbated by excessive public debt, poor governance, and increased economic risks, discouraging domestic and foreign investments. The analysis incorporates two theoretical perspectives: endogenous growth theory, which stresses the significance of local capital investment and innovation, and institutional governance theory, which focuses on the role of governance in promoting economic development. The study reveals that poor governance, rising debt, and high economic risks have impeded GFCF and economic stability. By utilizing quantitative data from 1995 to 2023, the research concludes that reducing public debt, improving governance, and minimizing economic risk are critical to revitalizing domestic investment in South Africa. These findings suggest that policy reforms centered on good governance, effective debt management, and economic stabilization can stimulate investment, promote growth, and address the country’s economic challenges. This study offers insights into how governance and fiscal policies shape investment and capital formation in a developing nation, providing valuable guidance for policymakers and stakeholders working towards sustainable economic growth in South Africa.

Implementation of Google Play Billing (GPB) for Indonesian Developers and Consumers based on Law No. 5 of 1999 Concerning Monopoly Practices

This study aims to analyze the Google Play Billing (GPB) policy implemented by Google towards developers and consumers in Indonesia in the context of Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. This policy requires developers to use the Google Play Store internal payment system with a commission rate of 15-30%. This policy is considered to limit the freedom of developers in determining monetization methods and suppress their competitiveness, especially for small developers who have limited resources. The research method used is normative juridical with a statutory approach and case studies. Data were collected from regulations, official documents, and literature reviews. The analysis was carried out on relevant regulations and related legal cases, such as case 03/KPPU-I/2024 which is currently being handled by the KPPU. The results of the study show that the GPB policy has the potential to violate the principles of fair business competition, especially regarding abuse of dominant position and conditional sales practices (tying). This policy also creates barriers to market entry for new developers and limits the choice of payment methods for consumers, which has an impact on high prices for digital services and reduced innovation and diversity of applications. The conclusion of this study confirms the need for strong regulatory intervention to ensure a fairer, more transparent and competitive digital ecosystem. The novelty of this study is an in-depth analysis of the relevance of GPB policies to the legal framework for competition in Indonesia and policy recommendations that support local innovation and consumer protection.

Implementation Of Tourism Implementation Through The Development Of Tourism Villages In Fostering Independence And Empowerment Of The Creative Economy

This research aims to explore the implementation of tourism implementation through the development of tourism villages in fostering independence and empowerment of the creative economy. This study uses a qualitative approach carried out by taking information from successful tourism village communities in Cirebon Regency. Data were collected through in-depth interviews, participatory observations, and document analysis. The results of the study show that the development of tourism villages significantly contributes to the economic independence of local communities through skill improvement, job creation, and strengthening social networks. In addition, the empowerment of the creative economy in tourism villages encourages local product innovation and increases market competitiveness. This implementation is supported by the government, the community, and the private sector, as well as environmental sustainability as the main supporting factor. In conclusion, the development of tourism villages not only increases economic independence, but also strengthens a sustainable creative economy at the local level.

Integrating Generative Artificial Intelligence Into Medical Education: Curriculum, Policy, and Governance Strategies.

The rapid advancement of generative artificial intelligence (GAI) is poised to revolutionize medical education, clinical decision-making, and health care workflow. Despite considerable interest and a surfeit of newly available tools, medical educators largely lack both competencies and guidance on how to incorporate the new and rapidly evolving world of GAI into the core medical school curriculum and experiences of undergraduate medical education. This Scholarly Perspective highlights the need for medical schools to adapt to this new paradigm by implementing policies, governance, and curricula that address the ethical, technical, and pedagogical implications of GAI. The authors recommend creating policies for appropriate GAI use, designed to protect institutional and patient data, and provide students with clarity on the appropriate use of AI for education. The authors suggest that implementing GAI governance at institutions is crucial to create guiding principles on ethical and equitable GAI use and involving students as coinventors of local innovation. The authors argue that providing faculty and learners with tools and training for safe experimentation with GAI and defining competencies for students and faculty are essential. Curricula for GAI should focus on implications of clinical uses. The authors propose a set of new competencies for GAI that build on those already established for AI in general. Given how dynamic the world of GAI is and how quickly new innovations are changing longstanding practices of clinical medicine, it is imperative that the medical education community acts together to share best practices, gather data to assess the impact of GAI education, continuously update the expected competencies of medical students, and help students prepare for a career that will be continually changed by GAI.

Driving Circular Innovation: From Business Model to Industrial Ecosystems

The problems related to environmental sustainability have led to the redefinition of economic processes, in particular from the previous linear model (take-make-dispose) to circular economic models. This implies changing the way and approach to industrial production particularly through innovation. This paper focuses on the question if and in which terms today we can talk about innovative ecosystems as an evolution of the industrial districts and clusters, and in which terms they can be capable of pursuing circularity issues by leveraging the innovation process. The paper aims at tackling the issue by means of a literature review of theories: circularity and business model innovation, spatial diffusion and clusters, innovation ecosystems. From the literature review, we derived an overview of the evolutionary path taken by local production systems from industrial districts and clusters that can lead to circular innovation ecosystems, conceptualizing the possible relationship between local industrial development, innovation and circularity.

Revealing preferential circulation—how the use of places serves localized entrepreneurs’ capabilities

Abstract With the aim of fostering innovation, many cities have promoted places to provide resources for entrepreneurs. Nevertheless, little work has been done to determine how these resources are mobilized by entrepreneurs, and how a collection of places in a given city-region can support their efforts. In this article, we argue that entrepreneurs attend different resource-producing places, and that the pattern thus drawn, called preferential circulation, reveals the ongoing entrepreneurial process. Based on network theory, we offer an original concept to better understand how cities can support entrepreneurial dynamics and suggest new insights for local innovation policy design.

ISOMORPHISM DALAM TRANSFORMASI DIGITAL INOVASI PELAYANAN PUBLIK

This research aims to investigate the patterns of isomorphism in the adoption of digital technologies in Indonesian government agencies, focusing on the variability of implementation and its impact on the harmonization of administrative practices and the efficiency of public services. The research method uses a qualitative approach with in-depth interviews and document analysis to collect data from various government agencies. The results of the analysis show that isomorphism facilitates inter-agency coordination but also presents challenges related to local innovation and adaptation. The implications of this research highlight the need for policies that support technology standardization while considering contextual variations to improve the responsiveness and quality of public services in Indonesia.

Understanding the Link between High-Speed Rail and Economic Growth

This study systematically reviews the literature on high-speed rail (HSR) and its impact on economic growth, revealing significant development potential, but with regional disparities. Larger cities often benefit more than smaller ones, highlighting the need for strategic policies to ensure inclusive growth. Initiatives such as supporting local innovation, retaining talent, and addressing accessibility gaps are essential. Current research uses quantitative methods and focuses on specific countries, suggesting broader qualitative approaches are needed. Effective implementation of HSR requires more than infrastructure; success depends on factors such as high population density, supportive land use regulations, and investment in education. Caution is advised for developing countries that lack national HSR policies or technological innovation. Tailored regulations and localized support are critical to optimize economic benefits and address uneven growth, as the viability of HSR depends on favorable geographical and economic conditions.

AFFIRMATIVE ENFORCEMENT FOR MICRO, SMALL, AND MEDIUM ENTERPRISES IN THE FIELD OF INTELLECTUAL PROPERTY RELATED TO NATURAL COLOURS IN BATIK MAKING

The importance of Intellectual Property Rights protection for Micro, Small and Medium Enterprises is a major highlight in supporting the sustainability and economic competitiveness of this sector. IPR has great potential to add value to the products and services produced by MSMEs, create a competitive advantage, and protect innovations or brands from the threat of infringement. However, various obstacles such as complex administrative procedures, high costs, unsupportive regulations, and limited law enforcement related to IPR violations are significant challenges for MSME actors. Normative legal research in this context aims to identify solutions to these problems, through simplification of the registration process ensuring that IPR registration procedures are simpler and more accessible to MSME actors subsidising registration fees providing relief from IPR registration fees through government subsidies or fiscal incentives for MSMEs that register their IPRs improvement of regulations encourages revision of regulations that pay attention to the needs of MSMEs, such as accelerating the time of the registration process and recognition of IPRs for local or traditional typical products. Increased law enforcement encourages revision of regulations that pay attention to the needs of MSMEs, such as accelerating the time of the registration process and IPR recognition for local or traditional typical products. Socialisation and education are expected to educate MSME players about the strategic benefits of IPR and how to take advantage of the system to support their businesses. Policies that support MSMEs are more optimal in utilising IPR to increase competitiveness, open up opportunities for market expansion, and protect local innovation and creativity. Collaborative efforts between the government, related institutions, and MSME players are the key to the optimal use of IPR. Keywords: MSMEs natural color batik, Affirmative, Intellectual Property