Abstract

The objective of this study is to provide an overview of the importance of corporate governance in promoting and activating creativity and innovation, as the main driver for growth and long term, and the importance of the study is also reflected in how to develop a systematic methodology to enable companies to adopt innovation by highlighting the role of governance in empowering the institutional system that supports innovation and development, in order to create excellence and ensure continuity and survival. We present in our study the latest statistics of the Global Innovation Index, and its sub-indicators: 1- Capacity for innovation, 2. Quality of the scientific research institutions, 3. Company spending on R&D, 4. The University-industry collaboration in R&D, 5. Gov't procurement of advanced technology products, 6. availability of scientists and engineers, 7. patent applications, according to the global competitiveness report (2017-2018) issued by the World Economic Forum, in which we determine the ranking of the first and leading countries of the list of indicators of innovation and its sub-indicators, as well as the ranking of Algeria globally and comparing them to some Arab countries: Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Morocco , Tunisia and Egypt. We also present the main findings of Deloitte's survey (Deloitte Center for Corporate Governance in the Middle East-2016) about the importance of the role of innovation in enterprise management, and how enhanced governance systems can contribute to innovation and growth in the enterprise. We used the descriptive statistical method, as well as the analytical method, by collecting the most important data related to the subject of the study and analyzing it, according to a series of reports, as well as a series of academic studies that dealt with this subject. The study found that the concept of creativity and innovation has become one of the most important criteria that determine the degree of excellence of institutions, but more than that is a determinant of its continuity and survival, in light of what distinguishes the business environment today from rapid change and the intensity of competition، and how advanced governance contributes to growth and innovation within companies and institutions. We are also aware of the ranking of Algeria in terms of the innovation index, ranking 104th in the world (out of 137 countries) behind the rest of the Arab countries: Qatar ranked 21st in the world and the first Arab, the United Arab Emirates ranked 25th in the world and the second in the Arab world, Saudi Arabia ranks 40th in the world, the third Arab, Bahrain ranks 45th in the world, as for North African countries, Morocco ranked 94th in the world, Tunisia in 99th place, and finally Egypt ranked 109th. Where it is clear to us that Algeria is still very interested in the concept and role of the innovation process, despite all its positives and advantages, due to poor management and planning, and neglecting the role of governance and its mechanisms in supporting and activating innovation in its institutional system. It is also clear to us, according to Deloitte's survey, that companies recognize the strategic importance of innovation, even though they now face a climate in which strategic risks are evident and companies that lag in the innovation curve may quickly fall prey to what is known as the antithesis of innovation: disruption and underdevelopment. The study therefore recommends the need to improve corporate governance policies and the importance of the Board of Directors to focus on innovation and prioritize it, allocation of part of its profits to support the innovation process, and not only the Board's interest in financial and operational management, because companies that do not master innovation will not be able to continue and is a key factor for orienting the future, monitoring and coping with future variables and enhancing the sustainability of businesses and thus creating and achieving excellence.