What Drives a Firm Innovation Success? Insight from Indonesian Firms Experiences

Abstract

He current study investigates determinants of innovation success among Indonesian firms by exploiting Indonesia Innovation Survey (IIS) data. Currently, insights on on different factors that influence innovation success of Indonesian firms is relatively few. Therefore, the current study to shed the lights on such research gap. Using logistic regression, the impact of internal R&D, firm openness decision, government financial support, and appropriability condition on innovation decision is assesed. Subsequently, Tobit regression is employed to assess the effect of the independent variables on innovation success/performance. The study results show that only internal R&D that drives innovation success. Further, internal R&D along with the implementation of open innovation strategy and strategic protection positively influence innovation success new to the market. The study emriches innovation literature in developing countries context (Indonesia) on the broad factors that drive innovation success that previously remain unexplored.