Innovation and proximity: The case of start-ups in the Casablanca-Settat region of Morocco

Abstract

Numerous studies have focused on the relationship between proximity - mainly geographical - and business innovation in a given territory (Chesbrough, 2003; Laursen & Salter, 2006; Mongo, 2013). The objective of our research is to study the link between the proximity of all forms and start-ups’ level of innovation in the Casablanca-Settat region of Morocco by applying structural equation modelling (PLS-SEM) using the Smart PLS 3.3.9 software. Moreover, a structural model is proposed that can be used to assess the level of innovation in organizations based on their internal capacities (human, financial, and technical capital) and the logic of proximity established within their local and global environment. To verify our hypotheses, the proposed model is tested on a sample of 98 Moroccan start-ups, relying on the mixed methodology of the hypothetico-deductive approach. The results indicate a positive correlation (26%) between proximity and the level of innovation of Moroccan start-ups. Moreover, proximity logic remains an important determinant of start-ups' innovation in addition to internal capacities.

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