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Installer throws SQL error

Description

After installing Providence on a local XAMP-server as well as on a Raspberry PI 3 LAMP-server I thought it was time to step it up. A real server.

Issue:
Installing Providence 1.7.3 and 1.7.4 on a server hangs at: Installing database table for entity names (see attached file).
The error.log file on my server shows the following error: "[error] PHP Fatal error: Uncaught DatabaseException: Specified key was too long; max key length is 767 bytes in /var/www/vhosts/83/288621/webspace/httpdocs/databasename.websiteurl.com/app/lib/core/Db/mysqli.php:316"
Software used:
Providence 1.7.3 as well as 1.7.4
Apache 2.2.11 (Unix)
PHP 4.4.9 mod_ssl/2.2.11
phpMyAdmin 4.0.9, latest stable version: 4.7.3
InnoDB is enabled
Try to resolve the issue with:
I have tried installing different Providence versions on my server.
I have tried creating new MySQL databases/users on my server.
I have tried installing different profiles: Testing profile, VRA Core 4.0 among others
Question:

What could I do next to try to resolve the issue? Thank you very much for your help!!

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Configure