The impact of innovation on manufacturing exports in Morocco: A study based on the gravity model

Abstract

Morocco faces a persistent trade deficit, largely due to the insufficient international competitiveness of its manufacturing sector. In this context, innovation emerges as a strategic lever to stimulate exports and reduce dependency on imports. This study investigates the impact of R&D spending and the number of patents on Morocco's manufacturing exports, using the gravity model and applying PPML and GMM methods to a panel of 20 trading partners between 2011 and 2023. The results indicate that the number of patents positively influences exports. However, insufficient investment in R&D hampers export competitiveness, keeping the country in a state of commercial dependence. This study underscores the urgency of strengthening Morocco's innovation ecosystem to reduce the trade deficit, enhance the competitiveness of its manufacturing industries, and promote more effective integration into global value chains. The findings offer strategic insights for policymakers in industrial and innovation policies.