Eco-Innovation for Strengthening Global Competitiveness and Building Capacity in Shipbuilding Industry in East Java to Support MP3EI Program Corridor Economic Java

In mapping the Ministry of Industry, the shipbuilding industry has been defined as a core competency Jatim industrial world. Ministry of Industry data show that there are at least 27 shipbuilding companies in East Java, or 10.5 percent of the total national shipbuilding company. In Java there are at least 21 large companies that use the ship in the main activity of the business. In addition, there are 39 units’ shipbuilding business people. Large shipbuilding companies, small and medium enterprises (SMEs) are at the core of the economy of East Java. The company-Vendor absorbs most of the labor force and is in the center of the development. Shipbuilding is also a major economic activity in Java Economic Corridor for MP3EI program. With the aim of supporting MP3EI program in Java economic corridor and in accordance with the new paradigm for international competitiveness, this study aims to develop Green Business Model Innovation in the shipbuilding industry in East Java to reduce the inefficiency of resources and capacity building shipyards, through the green platform. In this study, also carried out the development of specific tools package to allow the involvement of SMEs in eco - innovation in the shipbuilding industry in East Java.This study uses a systematic, integrated, and involve a lot of tools in accordance with the method introduced by (OECD, 2010). With referred on eco-innovation methods of the Organization for Economic Co-operation and Development (OECD) this study is expected to produce output as: 1) End-of-pipe solutions for the shipbuilding industry in East Java, 2) optimization model to minimize resource and a model of environmental management systems for the shipbuilding industry in East Java, 3. Development toolbox for eco-innovation that enable the involvement of SMEs in Industrial Shipbuilding East Jaa (Gómez Navarro et al, 2005) as tools that exist today are relatively few that explicitly support eco-innovation activities in shipbuilding industry 4. Green Shipbuilding Design which enables the achievement of eco-efficiency and cleaner production in East Jawa Shipbuilding Industry.