R & D Dan Inovasi Di Perusahaan Sektor Manufaktur Indonesia

. In this globalized era, innovation has proven to be the key success factor for competition and also company\u27s business development. One of the factors determining the success of innovation is Research & Development (R&D) activities. However, until now, the existence of R & D as a driving factor for the creation of innovation is still being debated. Using statistical test to the survey data in the Indonesia\u27s manufacturing sector, this study attempts to observing the effect of R & D for innovation in the Indonesian manufacturing sector. The result of the study shows that R & D activity has an important role to innovation in Indonesia\u27s manufacturing firms. R & D expenditure level also affects the existence of innovation. Result of this study all at once debate the theory of innovation without R&D which state that there is no significant difference between firms with and without R&D in creating innovation