Determinants of Moroccan SMEs Innovation: A Systematic Literature Review of Financial, Institutional, and Managerial Factors

Abstract

This paper investigates why Moroccan SMEs innovate so little despite representing over 95% of all enterprises and nearly half of national employment. Less than 15% of Moroccan manufacturing SMEs introduced any product or process innovation in three years, against a developing-country median of 28%. Drawing on a systematic review of 22 empirical articles indexed in Scopus and Web of Science (2017–2025), the study synthesizes financial, institutional, and managerial determinants of SME innovation. The analysis identifies a self-reinforcing "vicious cycle" driven by three interconnected forces: severe financial constraints, an unfavorable institutional environment, and insufficient dynamic managerial capabilities. This integrated framework suggests that effective innovation policy must address all three dimensions simultaneously.