Determinants of environmental technological innovation in Morocco: Evidence from ARDL and ECM models

This study investigates the macroeconomic, financial, technological, and institutional determinants of environmental technological innovation in Morocco, focusing on the roles of ICT imports, domestic credit to the private sector, GDP growth, urbanization, and regulatory quality. The analysis uses annual data from 2000 to 2023 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to examine long-run relationships. An Error Correction Model (ECM) captures short-run dynamics following cointegration. Unit root and diagnostic tests confirm model robustness and stability. The results show that ICT imports and regulatory quality are positively associated with long-term growth in green innovation, as proxied by environment-related patent applications. Domestic credit and urban population growth exert significant short-run effects, while GDP growth shows a modest but positive impact over time. The error correction term is statistically significant, indicating a gradual convergence toward long-run equilibrium. The dynamics suggest that financial development, technology exposure, and urbanization play time-sensitive roles in fostering innovation. This study provides one of the first econometric assessments of green technological innovation in Morocco, addressing a notable gap in the literature. By integrating institutional and macro-financial variables, it offers valuable evidence for designing coherent innovation and sustainability strategies. The findings underscore the importance of enhancing digital infrastructure, improving access to finance, and strengthening regulatory governance to support Morocco’s environmental transition and long-term sustainable development.