Economic Growth, Increasing Productivity of SMEs, and Open Innovation

Abstract

The empowerment of small and medium economic enterprises will drive economic growth. The purpose of this study is to analyze (1) how economic growth works as a determinant of increasing the productivity of small and medium enterprises; (2) the influence of government policies, business capital support, and the strengthening of human resource capacity on the development of small and medium enterprises (SMEs); and (3) strategies to increase business productivity and the sustainability of SMEs. We used a sequential explanatory design, which is a combination of quantitative and qualitative research, and data were obtained through observation, in-depth interviews, surveys, and documentation. The results of the study indicate that economic growth coupled with technological innovation will boost the productivity of economic enterprises and increase people’s welfare. Government policies, business capital support, and human resource capacity strengthening simultaneously have a positive effect on the development of SMEs, with a determination coefficient of 97.6%. Based on the results of this study, an economic growth strategy based on technological innovation is recommended for government decision making as an effort to increase the productivity of community economic enterprises in Makassar City, Indonesia.

The Role of Open Innovation, and the Performance of European Union Regions

“…Innovation management models are nowadays fundamental aspects, since it is possible to witness permanent changes in organizational contexts, whether in the co-operation between people, either between entities, or even between people of different entities. The performance of European Union regions, in terms of innovation, is intrinsically associated with the adoption of the guiding principles for open innovation by organizations in their respective territories [66,67].…”

“…According to [68] open innovation means that valuable ideas can come from inside or outside the organization and reach the market. The idea of openness supposes a break with a traditional philosophy of not revealing issues of internal knowledge to the outside, recognizing the opportunity to obtain competitive advantages through relationships with professionals and external organizations, sharing resources and knowledge, and establishing alliances and partnerships [66].…”

Economic Evaluation, Use of Renewable Energy, and Sustainable Urban Development Mamminasata Metropolitan, Indonesia

“…The use of renewable energy sources will provide complementary opportunities between energy security, energy access, and climate change mitigation [127]. Sustainable ecosystems, as a community goal, will be related to local wisdom, autonomous, (independent), and according to community needs [128,129]. The use of renewable energy for urban development will require instruments for controlling space use: (1) zoning arrangements for space use, supported by the availability of adequate energy infrastructure, (2) the optimal use of land, in terms of providing energy facilities and infrastructure in a sustainable manner, (3) effective and efficient energy resource use based on changes in community behavior, and (4) use of energy resources effectively and efficiently, followed by government policies toward increasing the productivity of community businesses in a sustainable manner.…”

Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19

“…In the developed countries such as in European Union, SMEs account for a striking 99.8% of all employer firms, 65 % of private sector employment and 54 % of private sector gross output (Gourinchas, Kalemli-Özcan, Penciakova, & Sander, 2020). In developing country like Indonesia, there are 63 million SMEs which contribute 60% of gross domestic product (Surya, Menne, Sabhan, Suriani, Abubakar, & Idris, 2021). These facts indicate that SME plays an important role in the global and national economy.…”