This paper examined the relationship between technological progress, measured by TFP growth, and economic growth, measured by GDP growth, both at national and regional levels experienced by Indonesia. Spatially, Indonesiawas disaggregated into 6 groups of Island: Sumatera, Java, Kalimantan, Sulawesi, Nusa Tenggara dan Maluku-Papua. Coefficients of correlation were calculated using simple regression model. Data resulted from a study at the Agency for the Assessment and Application of Technology of the Government of Indonesia, 1984-2010, were used for this study. The results showed that both at national level as well as at regional level the correlation between technological progress and economic growth was positive and very strong.It is then suggested that programs of technology development should continually be pushed in order to maintain sustainable economic growth.
