Technological innovation and growth of non-hydrocarbon SMEs in Algeria: An empirical estimation

Abstract

This article aims to study the impact of technological innovation on the growth of small and medium-sized enterprises (SMEs) in the non-hydrocarbon sector in Algeria. To do this, we conducted an empirical study based on production function estimation, highlighting the role of innovation and endogenous technological progress. The results of our study show that production factors, in this case innovation, exert positive externalities, but with a weak impact on overall productivity. The study recommends to promote an inclusive national innovation system, adopt digital technologies to support SME growth, and develop synergies through the expansion of the non-hydrocarbon sector market.