PENINGKATAN DAYA SAING UMKM BERBASIS INOVASI DAN KREATIVITAS (STRATEGI PENGUATAN PROPERTY RIGHT TERHADAP INOVASI DAN KREATIVITAS)

Abstract

Economy has entered a new phase in which the source of competitive advantage has changed. The advantages of an economy are not only from technology, especially natural resources. Source of the latest competitive advantage is
innovation and creativity. Small and Medium Enterprises (SMEs) as part of the economy also should improve their competitiveness by innovation. Competitive advantage based on innovation and creativity should be preferred because of
its durability and a longer period of time. This study aims to formulate an institutional strategy to encourage innovation and creativity in SMEs. This paper studies the ideas of the book and the SWOT method. Furthermore, this paper does a
comparative strategy of creating strong institutions for the creation of creativity and art that can improve the competitiveness of SMEs from several countries. SMEs problems related to the productivity, among others a lack of
protection of copyright on innovation and creativity. This resulted frequent occurrence of plagiarism on a product to the detriment of SMEs creator of the product. Property rights to the product or product design does not function as a
production incentive. Overlooked property rights create production disincentives. Therefore there needs to be an incentive for creators’ production so that they are still motivated to do innovation and creativity continuously. Step that can be done is appreciation by granting patents to innovative SMEs. This will encourage further creations and produce products with features and designs that attract consumers.

Keywords: institution, property right, innovation, SME