LOCAL INNOVATION ON PUBLIC SECTORS IN INDONESIA: DELIVERING PUBLIC SERVICES AND INCREASING ECONOMY GROWTH

Abstraksi

Innovation is widely acknowledged around the world to improve economy growth in a region. Conceptually, innovation is not only result of research and development (R&D) activities, but it is also generated from creation of new ideas, imitation of products, and learning process from other organizations or activities. Innovation occurs commonly in private sector, but it is awkward in public sector. Case of Indonesia, innovation is a new way to make better bureaucracy, eventhough it is not easy and simple at practice. For local governments, innovation is popular since Regency of Jembrana, in Bali Province, introduced newness in delivering public services in early 2005. Recently, many local leaders both in municipality and regency adopt innovation in delivering public and in increasing economy growth at local level, for instances, Regency of Banyuwangi in East Jawa Province and Regency of Bantaeng in South Celebes Province. Through local innovation, local leaders increase local resources potential from comparative advantage to be competitive advantage. It means that local resources are new economy sources which can increase local income for both local government and local people. This study is a qualitative method by yielding descriptive data to explain why local innovation can occur and support local developement in an area. This study finding is that local innovation is a feasible way to each local governments to increase quality of public services and to improve economy growth in an area, but it is not built in a systemic path so sustainbility of local innovation is questionable.