The Link Between Innovation Behaviors and Productivity Strategies of Enterprises in Albanian Economic Growth

Abstract

This paper investigates the nexus between innovation behaviors and productivity levels in Albanian enterprises, identifying them as the primary engines of job creation and sustainable economic growth. By underscoring the strategic importance of firm-level innovation for Albania’s long-term development, the study addresses a notable gap in existing literature. Methodologically, the research employs a regression model and the Johansen co-integration test to analyze longitudinal data from 1991 to 2013, focusing specifically on the relationship between GDP per worker and employment figures. The findings demonstrate that integrated innovation strategies are not merely incidental but fundamental to increasing labor productivity and fostering a resilient economy. Ultimately, the study provides a quantitative framework for understanding how enterprise-level dynamics influence macroeconomic stability, offering crucial insights for policymakers dedicated to enhancing Albania’s competitive edge in the global market through targeted support for innovative business practices and efficient labor utilization.