INNOVATION IN THE ALGERIAN ELECTRONICS INDUSTRY: INTERNAL STRATEGIES AND ECOSYSTEM LIMITATIONS

Abstract

Innovation is generally understood as a collective process, embedded in networks of actors through which knowledge is co-created and transformed into innovation. This article aims to examine the development of innovation in the electronics industry in Algeria and its relationship with the sector’s innovation ecosystem. The study adopted a quantitative, survey-based approach targeting firms in the electronics sector across multiple regions of Algeria. Data were collected using a structured questionnaire administered to 150 firms, of which 70 valid responses were obtained from four major geographical areas of the country. The study results reveal the existence of innovation practices within Algerian electronics firms. Although referred to by different labels, innovation primarily takes the form of solutions to internal organizational, technical, or market challenges. These innovations are used as part of a survival and sustainability strategy. While the environment influences innovation by providing knowledge and opportunities, the development of sustained innovation ecosystems remains limited, as it is constrained by many structural challenges. As a result, firms tend to view innovation mainly as an endogenous and internal process.