Innovation and Dynamic Productivity Growth in the Indonesian Food and Beverage Industry

Maman Setiawan (), Nury Effendi, Rina Indiastuti, Mohamad Fahmi and Budiono Budiono
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Maman Setiawan: Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia
Nury Effendi: Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia
Rina Indiastuti: Faculty of Economics and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Indonesia

Resources, 2022, vol. 11, issue 11, 1-13

Abstract: This paper examines the relationship between innovation and dynamic productivity growth in the Indonesian food and beverage industry. Dynamic productivity growth is calculated using a Luenberger indicator, and innovation is represented by a process innovation. This research uses firm-level data for the period 1980–2015 sourced from the Indonesian Central Bureau of Statistics. This research uses a panel data regression model to estimate the relationship between innovation and dynamic productivity growth. This research finds that innovation is relatively low in the Indonesian food and beverage industry. Dynamic productivity growth declines steadily during the period of estimation. This research also found that innovation positively affected dynamic productivity growth only after the introduction of the competition law in Indonesia.

Keywords: dynamic productivity growth; innovation; competition law; food and beverage industry (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2022
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