This paper addresses an hypothesis on the contribution of the external capabilities to
the birth of the innovation activity within the firm. The econometric analysis
conducted on a sample of Algerian manufacturing entreprises,
allowed to highlight four robust results which remain significant and stable after
adjustment by various indicators. The main result is that the development of different
firm capabilities was not exclusively originated from an edogenous effort, but also induced by an
exogenous shock resulting from participating to the upgraded firms’ program financially
supported by the Algerian government and the European Union. Furthermore,
the improvement of human resources competencies, the use of ICT and the
compliance to performance criteria explain significantly
firm engagement differences in the product innovation activity.
The R&D and firm size as traditional factors seem not to be significant
predictors of innovation capacity in the present case.
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