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How can we find innovation in the market? By following some actors, I found that the answer is not as simple as market push, or technology push, but a combination of both of them. It is true that consumer influence the production, but only as an aggregate, not as an individual. One theory which explains how an individual or a specific community influences the others is diffusion theory, as I ever post before. In the other side, most of the research and development(R&D) institution such as universities, government research departments, and non-government research departments, don’t have an independent source of fund. These dependencies influence how the scientist works, what themes which prioritized to develop and also the sustainability of the R&D institution.
An exit strategy that proposed to guarantee the R&D institution is by a linkage between R&D and industry. Unfortunately, not like Silicon Valley which initiated by an angel investor, linkage between industry and R&D in Indonesia is barrier by the policy and also venture capital. Big industries prefer to import technology abroad. A good track record and guarantee are a few reason why they choose to import the technology from outside.
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