Determinants of the innovating supply chain in Tunisian manufacturing firms

The purpose of this paper is to analyse the role played by two groups of factors in innovation activities: firm structural characteristics (size, R&D expenditures, age of firms, ownership and qualification of human capital) and market characteristics (market structure, sectors, exportation, networking and science-industry linkage). In order to achieve this goal, we use a sample of 586 Tunisian firms collected by the first CIS (Community Innovation Survey) done in Tunisia in 2005. The findings are as follow: first, the relationship between innovation and skill level is stronger for product innovation which is ‘new-to-the-market’ rather than ‘new-to-the-firm’ and process innovation. Firms require an adequate stock of technically qualified manpower. It is found that technically qualified manpower is needed to absorb new technologies, modify them, create and develop new products, particularly scientists and engineers. Second, R&D expenditures are important for product innovation. Third, forming co-operative arrangements with other firms or institutions still appear to be important for innovating firms. Networking is supposed to be primarily beneficial for small companies involved in related lines of businesses. In particular Science-Industry linkage is a significant determinant for product and process innovation. And finally, high levels of concentration in the market are the most conducive to process innovation.