Innovation and level of development in Morocco: Comparative analysis of innovation inputs and outputs according to the "Global Innovation Index" 2017

Abstract

This exploratory study aims to determine the link between innovation and economic development in different types of countries, and Morocco in particular, based on the Global Innovation Index. The main objective is to identify the impact of innovation on Morocco's economic development, focusing on its global positioning in terms of innovation according to the 2017 Global Innovation Index, and then to compare it to a sample of countries. To achieve this, on the one hand a principal component analysis has been carried out, and on the other, a linear regression is run to demonstrate the link between innovation and economic development. The development of this econometric model is determined by linking the level of development with measures of innovation, geography and trade openness. The results obtained from the two analyses show a strong positive relationship between level of development and innovation. The study's conclusions endorse the quadratic relationship between development and innovation capacity, with an average level of innovation in Morocco.