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Direct and Complementary Effects of Investment in Knowledge-Based Economy on Innovation Performance in Tunisian Firms

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  • Adel Ben Khalifa

    (Tunisian Institute of Competitiveness and Quantitative Studies (ITCEQ) and University of Carthage (ENVIE))

Abstract

This paper investigates two sets of hypotheses related to the relationship between the investment in the knowledge-based economy (KBE) and innovation performance in a developing country. The first set supposes that investment in information and communication technologies (ICT), organizational innovations, and human capital, the main three pillars of KBE, has a direct effect on innovation performance of Tunisian firms. The second set tests the hypothesis of complementary effect of these pillars such that their combination constitutes a significant production system affecting the innovation performance. Using recent firm-level data, we find evidence of direct effect of investment in the KBE on firm’s innovation performance. The second set of hypotheses is partly supported. We find evidence of complementarity between ICT and human capital as well as between ICT and organizational innovations, but we do not find evidence of complementarity between human capital and organizational innovations. Moreover, we find that full complementarity between ICT, organizational innovations, and human capital does not apply to Tunisian firms.

Suggested Citation

  • Adel Ben Khalifa, 2019. "Direct and Complementary Effects of Investment in Knowledge-Based Economy on Innovation Performance in Tunisian Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 561-589, June.
    • Handle: RePEc:spr:jknowl:v:10:y:2019:i:2:d:10.1007_s13132-017-0481-1
    DOI: 10.1007/s13132-017-0481-1
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    More about this item

    Keywords

    Knowledge-based economy; ICT; Organizational innovations; Human capital; Product and process innovation; Direct and complementary effects;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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