The Role of Innovation in Promoting Regional Economic Growth and Sustainability in Indonesia
DOI:
https://doi.org/10.54518/fid.2.1.2024.1251Keywords:
Digital Transformation, Economic Growth, Innovation, Regional Development, SustainabilityAbstract
Innovation has become a strategic driver of regional economic development by enhancing productivity, competitiveness, and sustainability. This study examines the role of innovation in promoting regional economic growth and sustainable development in Indonesia through a qualitative library research approach. Secondary data were collected from peer-reviewed journal articles, academic books, government reports, and institutional publications related to innovation, regional development, digital transformation, and sustainability. The collected literature was analyzed using qualitative content analysis to identify major themes, compare previous findings, and synthesize empirical evidence. The findings indicate that innovation contributes significantly to regional economic growth by improving productivity, strengthening entrepreneurship, accelerating digital transformation, and enhancing collaboration among governments, industries, universities, and communities. Innovation also supports sustainable development through efficient resource utilization, environmentally responsible production systems, and green economic practices. However, disparities in infrastructure, institutional capacity, human capital, and technological readiness remain major challenges affecting regional innovation performance. Therefore, integrated innovation policies emphasizing collaboration, digital infrastructure, research commercialization, and sustainable governance are essential for achieving inclusive and sustainable regional development throughout Indonesia.
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