Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa
Innovation currently represents a significant source of added value and competitiveness for companies on the international scale. However, financing innovation activities is a real challenge to overcome in order to successfully achieve the goals in emerging countries. The main objective of this pape...
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| Format: | Article |
| Language: | English |
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Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2025-06-01
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| Series: | Scientific Annals of Economics and Business |
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| Online Access: | https://saeb.feaa.uaic.ro/index.php/saeb/article/view/3042 |
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| author | Mohamed Oudgou Abdeslam Boudhar |
| author_facet | Mohamed Oudgou Abdeslam Boudhar |
| author_sort | Mohamed Oudgou |
| collection | DOAJ |
| description | Innovation currently represents a significant source of added value and competitiveness for companies on the international scale. However, financing innovation activities is a real challenge to overcome in order to successfully achieve the goals in emerging countries. The main objective of this paper is to conduct an empirical analysis on the identification of different sources of financing for firm innovation in the MENA region and Africa. To do this, we have constructed a battery of measures of the innovation capacity of firms: product, process, invention and innovation intensity of firms. In addition, the sources of financing were assessed by financing investments and working capital through bank debt, non-bank financial institutions, capital increase, equity, commercial debt and other sources of financing. The empirical study is based on the World Bank survey of more than 34,000 firms in the MENA region and Africa over the period 2011 and 2020. Through the use of several econometric modeling, the estimation results indicate the importance of bank financing, non-bank financial institutions, and trade credit in financing innovation of MENA and African firms. |
| format | Article |
| id | doaj-art-3fdc5bed8e64441cb4de6ade1dff572d |
| institution | DOAJ |
| issn | 2501-3165 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
| record_format | Article |
| series | Scientific Annals of Economics and Business |
| spelling | doaj-art-3fdc5bed8e64441cb4de6ade1dff572d2025-08-20T03:23:51ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652025-06-0172231533610.47743/saeb-2025-00102073Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and AfricaMohamed Oudgou0Abdeslam Boudhar1National School of Business and Management, University of Sultan Moulay SlimaneNational School of Business and Management, University of Sultan Moulay SlimaneInnovation currently represents a significant source of added value and competitiveness for companies on the international scale. However, financing innovation activities is a real challenge to overcome in order to successfully achieve the goals in emerging countries. The main objective of this paper is to conduct an empirical analysis on the identification of different sources of financing for firm innovation in the MENA region and Africa. To do this, we have constructed a battery of measures of the innovation capacity of firms: product, process, invention and innovation intensity of firms. In addition, the sources of financing were assessed by financing investments and working capital through bank debt, non-bank financial institutions, capital increase, equity, commercial debt and other sources of financing. The empirical study is based on the World Bank survey of more than 34,000 firms in the MENA region and Africa over the period 2011 and 2020. Through the use of several econometric modeling, the estimation results indicate the importance of bank financing, non-bank financial institutions, and trade credit in financing innovation of MENA and African firms.https://saeb.feaa.uaic.ro/index.php/saeb/article/view/3042innovationinventionr&daccess to financemenaafrica. |
| spellingShingle | Mohamed Oudgou Abdeslam Boudhar Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa Scientific Annals of Economics and Business innovation invention r&d access to finance mena africa. |
| title | Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa |
| title_full | Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa |
| title_fullStr | Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa |
| title_full_unstemmed | Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa |
| title_short | Financing and the Challenges of Developing the Innovation Capacity of Enterprises in Developing Countries: The Case of the MENA Region and Africa |
| title_sort | financing and the challenges of developing the innovation capacity of enterprises in developing countries the case of the mena region and africa |
| topic | innovation invention r&d access to finance mena africa. |
| url | https://saeb.feaa.uaic.ro/index.php/saeb/article/view/3042 |
| work_keys_str_mv | AT mohamedoudgou financingandthechallengesofdevelopingtheinnovationcapacityofenterprisesindevelopingcountriesthecaseofthemenaregionandafrica AT abdeslamboudhar financingandthechallengesofdevelopingtheinnovationcapacityofenterprisesindevelopingcountriesthecaseofthemenaregionandafrica |