The Algerian economy, which is dominated by the oil and gas sector, often struggles to compete and is highly dependent on fossil resources. To tackle these challenges, the Algerian economy needs to become more digital and greener. This will require innovation on the part of Algerian micro, small and medium-sized enterprises (MSMEs), including start-ups. However, a strong innovation ecosystem needs to be in place for this kind of development and there is currently limited cooperation between stakeholders in this area. Moreover, the structural and institutional framework does little to incentivise or promote innovation. Many companies also lack key skills and an awareness of digital and green technologies and methods.

A strengthened innovation ecosystem promotes green and digital economic development in Algeria.

To support the Algerian innovation ecosystem, the project promotes cooperation between its stakeholders, enhances the capacity of its support structures, and assists MSMEs with the operational use of digital technologies. In this context, the project is doing the following:

• It is developing green Digital Innovation Hubs and connecting them to other hubs in Europe and other African countries. A digital innovation hub is a coordinated group of organizations with complementary fields of expertise. They have a public-benefit objective of supporting companies with regard to their digital transformation and innovation.
  
• The project advises the Algerian Ministry for the Knowledge Economy, Start-ups and Microenterprises on improving the normative and institutional framework, with the aim of promoting start-ups and innovation. To this end, it also provides training for specialists and managers at organizations in the innovation ecosystem.
  
• In addition, it is building up a pool of advisors who can assist Algerian MSMEs in their digital transformation.