Abstract

Innovation plays a crucial role in driving the growth of small- and medium-sized enterprises (SMEs), particularly in Morocco’s dynamic business environment. This study explores how different forms of innovation—product, process, and technological innovations—affect the growth paths of Moroccan SMEs. Using data from 134 SMEs in the Casablanca-Settat region, we applied descriptive statistics, pairwise correlations, and ordinal logistic regression models to assess the impact of innovation intensity on key growth indicators; specifically, workforce expansion, sales, and net income. Our findings reveal that product innovation significantly boosts workforce and sales growth, while process and technological innovations often improve efficiency but tend to reduce labor needs. Moreover, firm characteristics, such as leverage, size, age, access to public support, and the implication of families in management, shape how innovation influences growth. However, some forms of innovation undoubtedly enhance competitiveness and market reach, whereas others pose challenges, particularly in terms of profitability and employment.