According to the latest European Trend Chart on Innovation, Morocco has a clear policy for innovation drawing on the competencies of several ministries, in particular the ministry with competence for Industry and that with competence for Scientific Research and Technological Development. This policy is a result of initiatives taken by the Ministry for Industry to develop a dialogue on innovation related issues with the Ministry responsible for Higher Education and Scientific Research, as well as with the CNRST – National Council for Research in Science and Technology, OMPIC – the national intellectual property organisation and R&D Maroc - the Moroccan R&D Association. Each organisation has now incorporated innovation in its own strategy implemented via its own institutions.

The Ministry responsible for Industry and its agencies for example are busy with initiatives to develop incubators, encourage the emergence of a private equity sector, and support the development of new business in traditional and emerging sectors alike. The Ministry responsible for Research and Higher Education acting through the CNRST has clearly aligned its strategy with the goal of creating an environment to support innovation. It has implemented a programme of radical change intended to provide industry with access to facilities, know-how and information. This programme involves the development of new university-industry interfaces, the introduction of ‘innovation’ as an action line in PROTARS – Morocco’s framework programme for RTD as well as a network of university based incubators.

The high level coordination of Innovation Policy is carried out by the Permanent Inter-ministerial Committee for Scientific Research and Technological Development3. This was established in 2000 and is chaired by the Prime Minister. It meets annually or in extra-ordinary meetings if needed. At a more operational level innovation related programmes such as EUREKA or the FSP4 have its own steering committee. Innovation related networks such as the RDT5, RGI6, RIE7 and the National Business creation Initiative all have their own coordination committees. The government is now in the process of developing a new network entitled ‘Network for Innovation and Creativity’.

Key characteristics of the country:

• High quality human capital and a good supply of engineers. Although unemployment is high there are threats to the sustainability of a supply of appropriate human capital.
  
• A recent evaluation of the science system has lead to decisive action in terms of the restructuring of the CNRST and the introduction of a specific ‘innovation’ line in the PROTARS III programme.
  
• A range of public funds with specific targets are available for industrial development. There is progress in the development of professional associations, but a continuing need to support improvement of this infrastructure in terms of participation, service, governance and communication sectors.
  
• A national network of incubators has been established. This is in a very early stage of development. Project pipelines are weak.
• Good progress has been made in the development of a venture capital industry.
  
• The first seed capital fund has been established – SINDIBAD.
  
• So far no business-angel activity has been observed.
  

Key drivers:

• High unemployment especially among graduates.
  
• Increase in hi-tech FDI flows in particular the establishment of foreign affiliated research labs.
  
• High oil price – Morocco imports 85% of its energy, it subsidises the cost of fuel for the population and has been hit hard by the recent surge in oil prices.
  
• Competitive threats to specific sectors such as the textiles and garment sector.
  
• Opportunities linked to free trade agreements especially with the EU and the US.

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