Track: Technology Management

Abstract

The innovation and marketing play a significant impact in achieving company performance according to Drucker (1954). The innovation reflected by the R&D budget while marketing by advertising expenses. This study aims to describe the profile of the industrial sector such as industrials and materials firms listed in the Indonesian Stock Exchange based on the R&D and advertising budget as a percentage of sales in suggesting the policy-making of the Indonesian manufacturing industry in the future. One of the important components of these is R&D and advertising expenses that determining the performance of the concerned firms or industry. This study analyzes the R&D and advertising expenses for the Indonesian manufacturing industry over the period 2014 to 2018 that listed in Indonesia Stock Exchange. The data retrieved from S&P Global Market Intelligence and Compustat. The managerial implications and suggestions will be posted to the Indonesian government.