Innovation Ecosystem for SMEs in the Creative Industry

Knowledge is an important factor in creating innovation. To obtain knowledge, SMEs should collaborate with community networks, universities, and the government, which is referred to as an innovation ecosystem. Most of the creative industry players in Indonesia are SMEs. The objective of this study is to analyze the effect of learning orientation toward networking capability and collaboration with universities, and the role of government support in developing an innovation capability. The respondents consisted of 156 owners/managers of SMEs in the creative industry in Bandung. To test the hypotheses, structural equation modelling was used. The results show that learning orientation has a significant effect toward networking capability and collaboration with universities in developing an innovation capability. However, government support has no significant effect in moderating the influence of networking capability and collaboration with universities toward innovation capability. The most important implication of the research is that SMEs in the creative industry should strengthen their networking capability to improve their innovation capability.