Tomy Perdana, Eddy Renaldi, Iwan Setiawan and Nono Carsono

Consumers for agricultural products are not only concerned about the quality and availability of the products in the market, but also are actively looking for product related information of the process that occurred in the supply chain.. This can be seen as opportunities for producers and other chain related actors to create values by working together with the consumers. This process is known as value co-creation. In developing countries, agricultural supply chain development through value cocreation often faces obstacles mainly related to the limited scale of the producers. One of the solutions to deal with this condition is the interaction between university as the knowledge centre, government as the regulator, and private sector as the party who understands customers. The interaction between the university, government, and private sector (the triple helix) is the key to innovation and development in the era of scientific based economy. Agribusiness cluster is the interrelationship between farmers, local businesses, banks, and local business development services in an area. Analyses and discussion in this article were done based on system thinking in form of causal loop diagram. The diagram is able to show a comprehensive understanding of innovation theories and shows the causalities in various interactions within the triple helix in value co-creation processes. The value co-creation process in vegetable cluster development program was a result of interactions between many complex variables and generated balanced and growing feedbacks to improve the competitiveness of the farmers’ group.

Triple helix, value co-creation, innovation, cluster, agribusiness