The effect of internal R&D efforts and external technology sourcing on achieving innovations in developing countries: the case of Tunisian manufacturing firms

Abstract

This paper provides an empirical investigation dealing with the success of innovative efforts in the context of developing countries. This study specially investigates whether internal and external innovative factors should promote innovations development in Tunisian manufacturing companies. Using a sample of 255 Tunisian manufacturing firms, our findings show that in-house R&D efforts as well as external absorbed know-how via technological cooperation agreements are significant drivers of products and processes innovation, mainly within large firms which operate in industries with high technological opportunity. Unlike previous studies carried out for developed countries our results tend to validate that occasional R&D activities are more efficient, in the context of developing countries, than continuous ones in terms of achieving successful innovations development. This might be due to the fact that continuous R&D activities need important endowment of financial resources and technological competencies which are not yet available within the firms in developing countries context.