Innovation determinants in emerging economies: an empirical study based on an innovation survey data in Tunisia

This study has been implemented using data drawn from the first innovation survey conducted in Tunisia in 2005 for years 2002, 2003 and 2004. We use this comprehensive dataset to uncover main determinants of innovation in Tunisian firms by applying an exploratory tentative logistic regression. The findings of this study are summarised as follows: 1) R&D is the most important factor determining the innovative activity of Tunisian firms; 2) with regard to the old 'Schumpeterian' determinant of innovation which is 'firm size', econometric estimations have put forward the existence of a 'Tunisian paradox': small firms are more innovative than medium and large ones; 3) neither workers' skills nor government incentives were significant to explain the innovation behaviour of Tunisian firms; 4) foreign-owned firms perform less than domestic-owned firms in terms of innovation. The above findings suggest that actions aiming to increase the innovative capacities of Tunisian firms should be based on a well-aimed policy mix. The idea is to promote R&D activity in SMEs by two leverages; direct support to firms through the incentive schemes and to develop both in kind and in intensity industry-academia links.