P. Eko Prasetyo, Andryan Setyadahrma, Nurjannah Rahayu Kistanti
Human capital and social capital are the main keys in creating new product development in the manufacturing and entrepreneurship industries to drive economic growth and competitiveness. The better the quality of human and social capital, the more variety of new products that can be produced. The purpose of this research is to explain the role of human capital and social capital as the main key to developing new products in driving economic growth and increasing business competitiveness. This study uses exploratory designs and cross-sectional data about engineering and management in the manufacturing and entrepreneurship industries of MSMEs in the provinces of Central Java and DIY in Indonesia. The analytical method used is path analysis in the form of a dual path correlation model. The results show that human capital and social capital both have positive and significant effects in developing new products. In addition, the development of human resources and new products have a stronger influence on economic growth. Meanwhile, social capital and economic growth play a more important role in creating competitiveness. That is, human capital and social capital are the main keys in creating new product development performance, which in turn encourages economic growth and the competitiveness of entrepreneurial businesses in the region. © 2020 IJSTR.
Faculty of Economics, Universitas Negeri Semarang, Indonesia
