Determinants of the Innovation Propensity in Tunisia: the Central Role of External Knowledge Sources

This article is dedicated to the analysis of the first innovation survey of the Tunisian firms. Starting from basic mechanisms of innovation processes, we test a set of conjectures adapted to a developing country like Tunisia. We analyze the motivation of firms to innovate and the determinants of product and process innovations. Our results show that firms must benefit from external knowledge sources in order to exhibit significant innovation propensities. The large size is also a necessary (but not sufficient) condition for innovation. We also notice that the participation of the State plays an harmful role.