August 12, 2025

Regional Innovation and Human Development: The Moderating Role of Fiscal Capacity in Indonesia

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Quantitative analysis reveals a positive link between regional innovation and HDI in West Java, highlighting fiscal capacity's moderating role.

Regional innovation significantly improves the Human Development Index (HDI) in West Java.
Higher fiscal capacity strengthens the impact of innovation on HDI; budgetary strength is key.
Analysis employed multiple linear regression on panel data from 27 local governments, 2019-2023.
Findings support the need for innovative policies aligned with fiscal strength to enhance human development.

Akbar et al. (2025) studied this question.

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Quantitative analysis reveals a positive link between regional innovation and HDI in West Java, highlighting fiscal capacity's moderating role.