ABSTRACT
This study aims to show the influence of central industrial policy on the performance of Small and Medium Industry (SMI). Central policy by the Government of Indonesia since 2007 aims to strengthen the performance of SMI. This research discusses the influence of external collaboration, technology, and research and development on innovation, as supported by the central policy on the performance of SMI. The research analyses two things: (1) literature review of SMI performance research in various countries; and (2) empirical phenomena about SMI policies and Central Industry’s performance in Indonesia. A qualitative model and research hypotheses are also used. The research is conducted at Footwear Central Industry in West Java including Cibaduyut-Bandung, Ciomas-Bogor, and Sukaregang-Garut. The results of this research show the influence of the factors mentioned, recommending the development of SMEs in the Central Industry, especially the Footwear Central Industry in West Java, Indonesia.
