Innovation Strategies in Developing a Local Wisdom–Based Creative Economy: A Qualitative Study of Regional Creative Industry Actors

Abstract

The creative economy grounded in local wisdom has emerged as a strategic pillar for regional development, particularly in Indonesia's culturally diverse landscape. However, existing studies remain fragmented, predominantly single-case in scope, and rarely integrate domestic findings with international frameworks. This study synthesizes innovation strategies employed by regional creative industry actors through a qualitative systematic review of 20 purposively selected studies drawn from Indonesian and international contexts (2021–2025). Employing thematic analysis and cross-case synthesis, the study identifies six dominant innovation strategy clusters: (1) product innovation rooted in cultural heritage, (2) digital and green marketing adoption, (3) multi-actor collaborative governance (triple/quadruple/quintuple/hexa helix), (4) government policy facilitation, (5) capacity building and human capital development, and (6) eco-cultural branding. A comparative analysis between domestic (Indonesian) and international (European and Latin American) studies reveals structural divergences in institutional support, digitalization readiness, and market integration. The novelty of this study lies in its development of an integrated Local Wisdom Innovation Model (LWIM) that bridges local wisdom with contemporary market demands, offering a replicable framework for other developing regions. Findings carry implications for policy formulation, educational curricula, and multi-stakeholder governance in creative economy development