Innovation Challenges in Infrastructure Cluster State-Owned Enterprises in Indonesia

Objective – In accordance with the direction of the Ministry of State-Owned Enterprises (MSOE), the Indonesia Infrastructure Research & Innovation Institute (I2RI), which has 10 BUMN members, has collaborated in developing research in the infrastructure sector. With different strategies and industrial backgrounds, they have opportunities and challenges to develop research that is beneficial to the common interest. Knowledge of existing challenges is required, using the gap analysis method of business size, management commitment, research & funding schemes, and research and innovation progress and achievements. Methodology – Identification of gaps is carried out by collecting and comparing data on revenue, assets, management commitment documents, research schemes, and funding, research units, business processes, core competencies, joint research programs, as well as technology adoption that each I2RI member has carried out, and also data on infrastructure market potential. Findings—It was found that all I2RI member companies still have gaps in terms of business size (revenue and assets), management commitment, technology mastery, and research and innovation capabilities. Apart from gaps, opportunities were also found in the supply chain circle and national infrastructure market that they could exploit. Novelty – This gap can be closed by being led by members who have financial stability and mature research collaboration & funding experience. Increased commitment is also needed to share knowledge and technology to equalize the understanding and maturity of all members. Type of Paper: Empirical JEL Classification: O31, H79, P13 Keywords: Gap Analysis; Research; Innovation; Collaboration; Challenges; Infrastructure. Reference to this paper should be made as follows: Wibawa, E.D; Sentosa, G.A; Saputra, R.A. (2024). Innovation Challenges in Infrastructure Cluster State-Owned Enterprises in Indonesia, J. Bus. Econ. Review, 8(4), 11–24. https://doi.org/10.35609/jber.2024.8.4(2)