ANALYSIS THE INFLUENCE OF REGIONAL INNOVATION AND REGIONAL COMPETITIVENESS ON PUBLIC WELFARE OF REGENCY/CITY IN CENTRAL JAVA PROVINCE 2019-2023

Abstract

This study aims to analyze the influence of the Regional Innovation Index (RII), Regional Competitiveness Index (RCI), Electronic-Based Government System Index (EGSI), and Investment on Public Welfare in Central Java Province from 2019 to 2023. A quantitative method with regression analysis was used to examine the relationship between these variables, utilizing secondary data from official sources. The research focuses on understanding how each variable affects public welfare, either directly or indirectly. The results indicate that RII and Investment do not have a significant influence on public welfare, suggesting the need for optimization of policies in these areas to ensure inclusivity and equity. Meanwhile, RCI has a significant but negative influence, highlighting potential inequalities in the implementation of regional competitiveness policies. On the other hand, EGSI has a significant positive influence, demonstrating that digital government initiatives successfully enhance public service efficiency and transparency, positively impacting public welfare. This study provides important implications for local governments to prioritize innovation-based policies, strengthen inclusive competitiveness strategies, and direct investments more effectively. Additionally, the implementation of EGSI should be further optimized, particularly in resource-limited areas. However, the research has several limitations, such as uneven data and the absence of consideration for external factors. Future studies are recommended to expand the scope of analysis to obtain more comprehensive findings.