Friend or Foe? Competition and Cooperation on Emerging ICT Cluster in Indonesia: A Preliminary Study Wawan Dhewanto a , R. Bayuningrat H. a1 , Sudrajati Ratnaningtyas a , Evy Rachmawati CH a , Rendra Chaerudin a , Qorri Aina a , Sri Herliana a , Eko Agus Prasetio a a .School of Business and Management, Bandung Institute of Technology,Jl. Ganesha no. 10, Bandung 40132, Indonesia Abstract This is a descriptive paper based on primary data on emerging ICT cluster in Indonesia to understand the dynamic of competition and cooperation. This paper wishes to identify competition and cooperation activity among ICT companies. We studied the types, production capacities, investments, assets, labor, and the characteristics of each industry based on as observations and interviews. The main findings of this paper show firm level commitment to cooperate and/or to compete in order to enhance their innovation performance. This paper has a practical implication for developing ICT industries in a region in order to enhance industry growth. Keywords: competition; cooperation; cluster driven innovation; Indonesia; innovation; ICT 1. Introduction ICT Industry in Indonesia is still in the emerging stage. According to the Deputy Minister of Communication and Telematics, Indonesia’s ICT industry capability is still in developing contents, applications, and operating systems. Indonesia’s ICT industry has a very long road until it can become similar to the industries in Silicon Valley, as the pinnacle of a developed ICT industry. As an emerging market, the nation’s ICT industry needs to enhance their competitive advantage. This is a necessity to prevent the domination of foreign ICT products from developed countries. Economic growth is largely dependent on the competitiveness of the industries and companies in a given region or country. The competitiveness is to large extent dependent on innovation capacity of the companies (Tonnisson, 2010). 1.1 Research Gap ICT industry in Indonesia is in its early stage. It is very much different compare to ICT industry world- wide. This paper is a preliminary study from a large research framework of Cluster Innovation of Indonesia’s ICT industry. This paper examines the competition and cooperation activity of ICT companies in industry cluster. A large number of ICT companies in Indonesia are members of industrial cluster. These industry clusters support the tenant companies in financing, production skill development, and also marketing. 1 Corresponding author. Tel.: +62 22 253 1923; fax: +62 22 2504249. E-mail address: r.bayuningrat@sbm-itb.ac.id.