Abstract
Algeria initiated reforms in various fields, including higher education in order to facilitate the transition to knowledge economy. This study showed the reality of higher education in Algeria and investigated its role in the production of knowledge by assessing the number of patents, scientific researches, university rankings; and it compared the Algerian higher education performance through Global Innovation Index and global competitiveness index. Using the collected data, the study clarified the relationship between expenditure on higher education and the number of patents issued, the result showed a strong positive relationship, and on the other hand it tried to explain the regression between Algeria's ranking on the global innovation index and the sub-indicator tertiary education. This study concluded by proposing the most important possible solutions to upgrade the Algerian performance. KEY WORDS: higher education, knowledge economy, government expenditure, university rankings, Innovation, patents, scientific research, human capital, GII, global competitiveness index, Algeria, Arab countries.
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