INPUTS AND OUTPUTS OF HIGHER EDUCATION: A READING OF THE ALGERIAN HIGHER EDUCATION SYSTEM IN THE LIGHT OF THE KNOWLEDGE INDEX

Objective: The purpose of this research is to assess and understand the condition and difficulties facing the education system, in Algeria in light of the knowledge economy, with particular focus on the alignment between university outputs and labor market demands. Theoretical Framework: The study is based on the concept of the knowledge based economy model which underscores the pressing requirement for institutions to adjust to progress and changing economic landscapes. It examines the relationship between higher education outcomes and economic development in developing nations. Method: The study employs an analytical approach to evaluate Algeria's higher education system, examining public spending patterns, graduate employment rates, and the alignment between academic programs and market needs. Results and Discussion: The results indicate that with rises, in funding, for public education and enhancements educational inputs, Algeria faces persistent challenges: (1) high unemployment rates among university graduates, (2) misalignment between academic training and industry requirements, and (3) limited focus on entrepreneurship and innovation in university curricula. Research Implications: The study recommends strategic reforms including: (1) reorienting universities toward entrepreneurship education, (2) strengthening research and innovation capabilities, and (3) developing learning environments that foster creativity and practical skills. These changes aim to shift from a purely employment-focused model to one that emphasizes job creation. Originality/Value: In this study a thorough examination of the education system, in Algeria is presented within the framework of the knowledge economy., offering evidence-based recommendations for transforming universities from institutions that prepare job seekers to centers that create job creators, thereby contributing to sustainable economic development.