Short answer

When developing new products, especially in nascent industries, consider the entire innovation ecosystem and identify potential systemic bottlenecks that could impact market entry and scalability.

Field
Innovation & Design
Source
STI Policy and Management Journal (2023)
Method
Desk research using secondary sources.
Evidence
Mixed findings

Indonesia faces significant challenges in connecting key elements of its innovation system, impeding the development of a robust electric vehicle (EV) industry. This innovation & design research insight is drawn from a 2023 study published in STI Policy and Management Journal. Using Desk research using secondary sources., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing new products, especially in nascent industries, consider the entire innovation ecosystem and identify potential systemic bottlenecks that could impact market entry and scalability.

Study
Innovation & DesignRecentMixed findings

Sectoral Innovation Systems Hinder Indonesian Electric Vehicle Growth

Indonesia faces significant challenges in connecting key elements of its innovation system, impeding the development of a robust electric vehicle (EV) industry.

STI Policy and Management Journal · 2023

01

Key Findings

  • 01Fiscal programs are ineffective in promoting collaboration between industry, universities, and R&D institutions for EV innovation.
  • 02Local content targets are difficult to achieve due to the unreadiness of local industries for the EV supply chain.
  • 03Domestic R&D quality and standards for EVs are inadequate for commercial scale.
  • 04Investor interest in local EV development is insufficient.
  • 05Lack of accessible charging infrastructure (ECS) is a barrier to the domestic EV market.
02

Application

Design takeaway

When developing new products, especially in nascent industries, consider the entire innovation ecosystem and identify potential systemic bottlenecks that could impact market entry and scalability.

How to apply

Before launching a new product or technology, conduct a thorough analysis of the relevant innovation system to identify potential barriers and opportunities for collaboration.

Project actions

  • 01When researching a new product idea, think about who else needs to be involved (government, other companies, research institutions) and if they are ready to participate.
  • 02Consider if the infrastructure needed for your product to work (like charging stations for EVs) is already in place or needs to be developed.
03

Method & Evidence

AimTo map the challenges in connecting the elements of the Sectoral System of Innovation (SSI) for the development of the electric vehicle industry in Indonesia.
MethodDesk research using secondary sources.
ProcedureThe study analyzed existing statistical data, official documents, and scientific references to identify and categorize challenges within Indonesia's EV innovation ecosystem.
ContextElectric vehicle industry development in Indonesia.

Variables

IV["Effectiveness of fiscal programs","Local industry readiness","Quality and standards of domestic R&D","Investor interest","Accessibility of charging infrastructure"]
DV["Development of the electric vehicle industry"]
CV["Country context (Indonesia)","Sectoral System of Innovation framework"]
04

Strengths & Limitations

Strengths

  • +Provides a comprehensive overview of systemic challenges.
  • +Uses a recognized framework (SSI) for analysis.

Limitations

The study is based on existing information and may not reflect the most current or on-the-ground realities of the Indonesian EV market.

Reliability & validity

The reliability of the findings depends on the quality and comprehensiveness of the secondary sources used. Validity is strengthened by the application of the Sectoral System of Innovation framework.

Think critically

To what extent can a single company or design team overcome these systemic challenges, or is significant government intervention and industry-wide collaboration essential for success?

05

Design Principles

"Ecosystemic Design: Design solutions must account for the interconnectedness of technological, institutional, and market factors."

Understanding these systemic disconnects is crucial for policymakers and industry leaders aiming to foster technological advancement and market adoption. Addressing these challenges can unlock opportunities for sustainable transportation solutions and economic growth.

06

What This Means for Your Design

It's hard to build electric cars in Indonesia because the government's money incentives aren't working well to get companies and universities to work together, local parts aren't ready, the technology isn't good enough yet for mass production, investors aren't interested, and there aren't enough charging stations.

How to use in your project

  • 1.Use this research to justify why certain external factors (like policy or infrastructure) need to be considered in your design process, especially if your project aims for wider adoption.
07

Add to My Project

08

Quick Cite

Paragraph starter

This research highlights the critical importance of a well-integrated Sectoral System of Innovation for the successful development of new industries, such as electric vehicles. The findings indicate that challenges in fiscal policy effectiveness, local industry readiness, R&D quality, investor interest, and infrastructure accessibility significantly impede progress. Therefore, any design project aiming for market introduction in a complex sector must consider and address these broader systemic factors.

09

Source

STI Policy and Management Journal

Challenges in Connecting The Elements of Sectoral System of Innovation for Developing Electric Vehicle Industry in Indonesia

journal · 2023

View source

Questions About This Research

What does the research say about sectoral innovation systems hinder indonesian electric vehicle growth?
When developing new products, especially in nascent industries, consider the entire innovation ecosystem and identify potential systemic bottlenecks that could impact market entry and scalability. Evidence: STI Policy and Management Journal (2023).
Why does "Sectoral Innovation Systems Hinder Indonesian Electric Vehicle Growth" matter for design?
Understanding these systemic disconnects is crucial for policymakers and industry leaders aiming to foster technological advancement and market adoption. Addressing these challenges can unlock opportunities for sustainable transportation solutions and economic growth.
How can designers apply this research?
When developing new products, especially in nascent industries, consider the entire innovation ecosystem and identify potential systemic bottlenecks that could impact market entry and scalability.
What were the main findings?
Fiscal programs are ineffective in promoting collaboration between industry, universities, and R&D institutions for EV innovation.. Local content targets are difficult to achieve due to the unreadiness of local industries for the EV supply chain.. Domestic R&D quality and standards for EVs are inadequate for commercial scale.. Investor interest in local EV development is insufficient.
What research method was used?
Desk research using secondary sources..
How strong is the evidence?
Evidence strength is rated Mixed findings, based on a 2023 journal from STI Policy and Management Journal.
What should I do differently in my next project?
Before launching a new product or technology, conduct a thorough analysis of the relevant innovation system to identify potential barriers and opportunities for collaboration.
What are the limitations?
The study relies solely on secondary data, which may not capture all nuances or real-time developments.