| dc.description.abstract | Indonesia is the biggest producer of palm oil in the world with 31.5 million tons of Crude Palm Oil (CPO) in 2014 and had export value almost 21 million USD. On the other hand, the economic value of Indonesian palm oil is lower than Malaysia. It happened because the palm oil Industry is less developed and depend on the large area of plantation. However, the development of palm oil industry is not only increasing the economic value but also creating new jobs for Indonesian. But, many problems happen in the developing process, one of them is the lack of Innovation. Therefore, the aim of the study is formulating innovation management for the palm oil industry. The research is using a case study strategy, with an inductive approach and interpretive philosophy. Data collection is using indepth interviews with an expert from Industry, a researcher from University, and a researcher from research institution. The data is analyzed by a triangulation method. The result showed that the innovation management in upstream industry and downstream industry has different stage. The development of innovation in downstream area needs more stage called as a demonstration plant stage. Furthermore, the availability of the market becomes the main factor for enterprises to develop innovation. There are two types of market internal and external. Moreover, before conducting research, the industry categorizes their problems into four sections urgent-direct, urgent-indirect, less urgent-direct, and less urgent-indirect. Based on that, they can prepare a short-term and a longterm strategy. Finally, the industry can develop innovation by their own resources, but the government, research institution and university can help the industry to accelerate the process, by conducting collaboration among them. Key Words : Innovation Management, Palm oil, Industry, Indonesia | en |
