Special Economic Zones and Innovation-Led Regional Transformation: A Qualitative Case Study of Batam, Indonesia, 2000–2025
DOI:
https://doi.org/10.55927/ijba.v6i4.16925Keywords:
Innovation-Led Growth, Batam, Special Economic Zone, Regional Innovation System, Economic GrowthAbstract
This paper examines how special economic zones can support innovation-led regional transformation, using Batam, Indonesia, as a qualitative case study from 2000 to 2025. While innovation is widely viewed as a driver of SEZ growth, limited attention has been given to how innovation emerges and becomes embedded within regional economies, especially in developing-country contexts. Using process tracing and thematic literature synthesis, this study analyzes the interaction between SEZ governance, institutional capacity, foreign direct investment, manufacturing clusters, human capital development, technology adoption, and regional economic change. The paper argues that innovation-led growth cannot be understood only through R&D spending or patent output, but through broader processes of technology diffusion, workforce learning, local capability building, and governance coordination. By positioning Batam within a wider global discussion on SEZ-led development, this article offers a qualitative explanatory framework for understanding how SEZs can evolve from investment-oriented zones into innovation-oriented regional growth nodes.
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