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Abstract

In a rapidly evolving borderless economy, the success of Chinese Small and Medium Enterprises (SMEs) in penetrating global markets demonstrates the critical role of structured collaboration among government, industry, and academia. This study examines how intersectoral collaboration, analyzed through the Triple Helix Framework, impacts the innovation agility and market readiness of SMEs in China and Indonesia. This research adopts a qualitative comparative policy analysis, drawing on relevant journals, policy documents, and SME reports to explore how interactions between these sectors influence SME growth and innovation. The findings show that China’s SME is supported by: (1) strong institutional coordination, (2) well-developed innovation hubs that integrate research and commercialization, and (3) consistent policy and funding support. In contrast, Indonesia faces fragmented policy implementation and limited collaborative mechanisms, which undermine SME competitiveness in global markets. These results confirm the hypothesis that Indonesia’s limited sectoral collaboration hampers its SME competitiveness and innovation capacity. The study offers both theoretical insights into the application of the Triple Helix framework and practical policy recommendations for strengthening Indonesia’s SME ecosystem. It emphasizes the need for enhanced sectoral collaboration to drive sustainable innovation and SME development, with long-term monitoring of policy impacts on Indonesia’s competitiveness in global markets.

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