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Strategic Innovation in Economic Development and Defense Industries: Harnessing Technology for Industrial Growth and Security Policy

Strategic Innovation in Economic Development and Defense Industries: Harnessing Technology for Industrial Growth and Security Policy
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Author(s): Dian Damayanti (European Alliance for Innovation, Indonesia)and Cicih Ratnasih (Universitas Borobudur, Indonesia)
Copyright: 2025
Pages: 26
Source title: AI-Powered Leadership: Transforming Organizations in the Digital Age
Source Author(s)/Editor(s): Maria D. Baez (Capitol Technology University, USA)
DOI: 10.4018/979-8-3373-1687-1.ch007

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Abstract

The research method used is descriptive qualitative. The results show that defense economic development can improve the defense industry through several strategies, namely: (1) strengthening the domestic defense industry, (2) increasing investment and international cooperation in defense technology, (3) optimizing the defense budget, and (4) developing a defense innovation system. The implementation of these strategies can encourage the improvement of domestic defense equipment design, production and maintenance capabilities, thereby reducing import dependence. The conclusion of this study is that the development of the defense economy is a strategic solution to improve the independence of defense equipment in Indonesia. The implication of this research is the need for policies and regulations that support the strengthening of the national defense industry and the development of a defense innovation system.

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