Enhancement of national productivity by the source of innovation: a study of ASEAN-developing countries

Research and development (R&D) is one source of innovation that delivers wealth to the country. The aim of the research is to investigate the appropriate number for budgeting on R&D in ASEAN developing countries, as well as to explore key index to track budget utilisation performance. To prove the theorem, the research model and hypothesis employed a regression analysis. National productivity is the dependent variable, whereas R&D budgeting per GDP is the independent variable. ASEAN countries of study include Thailand, Malaysia, Indonesia, Cambodia, Laos, Myanmar, the Philippines, and Vietnam. The research results suggested that national productivity is a useful index for measuring and monitoring the performance of budget utilisation. Moreover, the regression model was fitted, and the R-square adj. is 79.42%. Research results suggest that at least 1% of R&D should be reserved as budget for ASEAN's developing countries and conclude that R&D budgeting per GDP increases national productivity.