Author: Tambunan, Tulus

Source: South East Asia Research, Volume 15, Number 3, November 2007 , pp. 385-406(22)

Publisher: IP Publishing Ltd

Abstract:

It is evident that levels of productivity are higher in large enterprises (LEs) and foreign-owned enterprises than in small and medium-sized enterprises (SMEs), partly because they have higher levels of technology capacity. But increasing the productivity of SMEs might be facilitated through improved knowledge or technology. The literature on the development of SME clusters in developing countries argues that clusters are an effective means of technology transfer to SMEs, and government can play a major role as the main source of technology transfer to the clusters, especially in regions where production linkages between LEs and SMEs are not yet well developed. This study shows that in Indonesia, government agencies are currently the largest providers of training and similar assistance. However, these programmes are marred by a low level of coverage, a lack of effective evaluation and assessment, and a supply rather than a demand orientation. The case study of the Tegal metalworking industry also shows that the important channels for the transfer of technology to SME clusters are not only government agencies but also subcontracting arrangements with LEs.

Keywords: LABOUR PRODUCTIVITY; TECHNOLOGY TRANSFER; METALWORKING INDUSTRY; SME CLUSTERS; TEGAL; INDONESIA

Document Type: Research article

DOI: http://dx.doi.org/10.5367/000000007782717768

Publication date: 2007-11-01

More about this publication?

• South East Asia Research publishes articles based on original research or fieldwork on all aspects of South East Asia within the disciplines of archaeology, art history, economics, geography, history, language and literature, law, music, political science, social anthropology and religious studies. This peer-reviewed journal is published four times per year by IP Publishing in cooperation with the School of Oriental and African Studies (SOAS). SOAS is the leading centre in this field in Europe and one of the most prestigious centres of South East Asian Studies in the world.

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