Technology, innovation and SMEs' export intensity: Evidence from Morocco

This study seeks to understand the scarcely examined relationships between SMEs' foreign technology licensing, R&D expenditure, innovation and export intensity. Espousing an integrated open innovation and self-selection paradigm, observations of 446 Moroccan SMEs are analysed through structural equation modelling . The definitive path analysis showed that foreign technology licensing and R&D expenditure distinctively affect innovation and, in turn, innovation increases export intensity. In further insights, to illustrate how the distribution of these inputs enhances internationalisation , a probabilistic analysis shows that foreign technology licensing, R&D expenditure and innovation will incrementally stimulate export intensity by >71 %. The permutations of these variables in the fresh setting of Morocco summon scholars' empirical attention at the same time as policymakers' consideration. • The relationships between foreign licensed technology, R&D expenditure, innovation and export intensity are examined. • The study integrates the open innovation paradigm with the self-selection view to explain exporting in a developing context. • A sample of 446 Moroccan SMEs is analysed using WarpPLS. • Foreign licensed technology and R&D expenditure increase innovation, which correspondingly drives export intensity.