Exploring Determinants of Firm´s Innovation in Morocco: Evidence from the World Bank Enterprises Survey

Abstract

This study investigates the determinants of firm's innovation in Morocco using data from the World Bank Enterprise Surveys among 1,096 enterprises for the year 2019. Using probit regression model, the results show that firm size, formal training, and informal sector competition are the main drivers of product, process, R&D investment, and foreign certification innovation. Furthermore, foreign ownership and the exporter status also significantly impact firms' innovation. The results indicate that small and medium-sized enterprises are less likely to innovate compared to large firms, and firms in the manufacturing sector are more likely to innovate compared to service sector firms. The findings of this study can be used by enterprises to develop effective strategies for innovation and by policy-makers to enhance the competitiveness of the Moroccan economy.