Increase in consumption of conventional plastics lead to environmental problems. Therefore, some efforts are needed to overcome it, one of them by using bioplastics. However, in Indonesia, companies engaged in bioplastics sector are still rarely found. Without the readiness of the bioplastics industry in Indonesia, development of bioplastics which ends to solve environmental problems cannot be realized. Through Socio-Technical Systems (STS) approach with Multi Level Perspective framework, this Papper analyze the dynamics of the transition of bioplastics in Indonesia. The results show the presence of pressure from landscape to underdeveloped niche, regime actors would give respond by modifying path development from its innovation activities. In other words, bioplastics in Indonesia has not yet experiencing a transition to replace conventional plastics. Precisely, technology in regime level experiencing change by developing additive plastic. However, there are several things that hinder further development of the niche, which include the high price of bioplastics and implementation of regulations related with incentives and disincentives and there is no coordination and shared vision between actor in niche level.
<p>The objective of this study is to have deep understanding on why and how firms engaging in innovation without formal R&D. Three cases of firms in machinery and food processing sectors were studied. The cross cases analysis found that types and sources of innovation vary according to business areas, technology field, and technological capability level of each firms. Firms innovate without formal R&D through it’s particular ways, and it is driven by firm’s specific resources namely management vision and leadership, integrated business system, and entrepreneurship and networking. The conceptual contribution of this study is an enrichment to “learning by using” with a new variant the so called “mastering from using”. Nevertheless, innovation without formal R&D is deficient in absorptive capacity (AC), it implies that non-R&D and informal R&D firms should invest in R&D to develop AC and increase technology adoption. Goverment policy by using R&D financing support and tax incentives should be directed at the innovative low-tech (LT) as well as low and medium-tech (LMT) industries, which will have produced higher results through innovation with informal and/or non R&D actvities. <strong></strong></p><p class="Default">Keywords: <em>innovation drivers, innovation types, innovation sources, non-R&D, informal R&D</em></p>
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